Question

Relating to international business and GDP and GNP :

Explain quantitative economic development and how it is measured.

Explain qualitative economic development and how it is measured.

Answer 1

1 - The quantitative economic development is measured from the quantitative variables of income , consumption , supply etc. These variables provide a better idea of the economic development of the economy.

GDP and Per Capita GDP can be used as measure to calculate the growth of the economy in quantitative terms. These tools tell us about the income of economy as a whole and also per capita basis.

2 - The qualitiative intruments basically focus on the standard of living and well being of the population. Hence the qualitative development is measured with tools like greater life expectancy rate , good health care , greater Human Development Index. These are called the qualitative tools of growth measurement.