Economic development is the process by which a nation's _______ increases and is widely shared by the population over a long period of time.
A) real total output
B) real total income
C) per capita real GDP
D) per capita nominal GDP

Question

Quizplus · Accepted Answer

Economic development refers to the sustained increase in per capita real GDP, or the total value of goods and services produced by a country's economy divided by its population, over a long period of time. This indicates that a country's economy is growing and becoming more productive, and that the benefits of this growth are being shared among the population as a whole. Real total output (A) and real total income (B) can both increase without necessarily indicating economic development if the benefits of that growth are not distributed widely. Per capita nominal GDP (D) does not take into account inflation, and therefore is not as accurate a measure of economic development as per capita real GDP, which adjusts for changes in prices over time.

Economic Development Is the Process by Which a Nation's _______