Basic Indicators of Economic Development
Basic Indicators of Economic Development
Basic Indicators of Economic Development
BASIC INDICATORS
National Income GDP Per Capita Income Infrastructure Foreign Trade and Balance of Payments Savings and Investments
National Income;
National income is the total money value of all final goods and services in a country during a given period of time. It is estimated at; Current price(quantity produced *current market price) Constant price(quantity produced*base year price)
total population. Per Capita Income of developed countries is 12 times more than that of India.
development of any economy. Savings originate from income and the financial intermediaries transfer them to investors. Investors use them for capital formation in turn generates a stream of income apart of which is saved.
Infrastructure
It is the basic physical and organizational
structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function The term typically refers to the technical structures that support a society such as roads, water supply, power grids, telecommunication, and so forth.
trade or international trade. BOP Meaning: A record of all transactions made between one particular country and all other countries during a specified period of time Balance of payments may be used as an indicator of economic and political stability. For example, if a country has a consistently positive BOP, this could mean that there is significant foreign investment within that country
ECONOMIC ENVIRONMENT
MEANING: It refers to all those economic factors which have a bearing on the functioning of a business unit. Business depends on economic environment for inputs and for selling its finished goods.
ECONOMIC FACTORS INFLUENCING BUSINESS SECTOR Capital Labor price Price Levels Productivity Entrepreneurs and Managers Government Policies Status of consumers Agriculture Economic Trend