Question 1 · 1 mark · Difficulty 1/3
Which of the following is the best definition of economic development?
- A reduction in a government's budget deficit over time
- An increase in a country's real gross domestic product over time
- An improvement in living standards and well-being of a population
- A rise in the general price level within an economy
Show answer & explanation
✓ Answer: C — An improvement in living standards and well-being of a population
Economic development refers to improvements in living standards, well-being, and quality of life — including access to education, healthcare, and reduced poverty — not simply GDP growth. Option D describes economic growth, which is a narrower concept. Option A describes inflation. Option C describes fiscal consolidation, which is unrelated to development.