This essay talks about the most common contrasting views of economists on the economic development of a country. The ideas to predict development in different countries include United Nations Development Programme human development ideas, the neoclassical view of utility and the macroeconomic idea…
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27). The human development idea of the UNDP emphasises some factors like education, life expectancy, gross national income and other issues that are standardised in the three main factors as a measure of people’s capability. The idea is that those who have a long life, have attained high education in a country that has high gross national income are likely to be very productive. This is because these people will be able to choose different economic activities that can bring income for their own as well as contribute to the economy of their country. On the other hand, it implies that if a person lives a short life, have low education attainment in a country that has low gross national income he or she is likely to be very unproductive. This is because they will contribute to very little benefit to the country in which they live since they have very few choices to make in the pool of economic activities available to all people. The human development idea of the UNDP emphasises the importance of both resources and capability to exploit them so that they can increase the income or benefit to the people and consequently impact the national economy. According this idea, availability of resources without capability to exploit them has no advantage to the people who have them (United Nations Development Programme, 2000, p. 12). The neoclassical view of utility is an idea that presents a different perspective into the explanation of development or the economic growth of individuals and consequently that of the country. The idea of the neoclassical view of utility explains that people’s preferences are important in determining the things they can do in the economy to increase their individual income and consequently that of the country. This means that a...
This essay presents one of the best examples of theoretical comparison of three most common ideas of economic scholars on the growth and development of economy. For the UNDP’s human development, capability is important to enhance economic growth, to the neoclassical view of utility, what people choose to do is important and according to the macroeconomic idea of constant growth, the economic performance of the wider economy is key in determining growth in an individual or institution.
The UNDP idea of human development as a determinant for growth of economy explains that management of abilities of the people is important because it influences their involvement in economic activities. Economic growth happens in situations where people have wide areas for making choices.
The neoclassical view of utility is an idea that presents a different perspective into the explanation of development or the economic growth of individuals and consequently that of the country. The idea of the neoclassical view of utility explains that people’s preferences are important in determining the things they can do in the economy to increase their individual income and consequently that of the country.
The macroeconomic idea of constant growth of GDP is an important way of explaining the development of a country or an individual. This idea focuses on the performance of the larger economy as a factor in determining the growth of individuals. The economic growth therefore is not dependent on the opportunities’ availability or an utilities.
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“Comparison of the Economic Ideas of GDP Growth Essay”, n.d. https://studentshare.org/macro-microeconomics/1485867-comparison-of-the-economic-ideas-of-gdp-growth.
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