Question

most development economists concur that the level and rate of GDP growth of and per capita income are not sufficient measures of a country's development. What is the essence of their argument

Answer 1

Actually GDP refers to the value of all the goods and services produced inside the domestic zone of each countries. The GDP rate acts as a parameter for measuring the soundness of the economy. And also Per-capita income refers to the average income earned by all the individuals in the domestic country and it is calculated as by dividing the current GDP by the current rate of population rate.. The propensity of the nation depends upon the high rate of the GDP as well as the Per capita income. So it is obviously observed facts of most development economists is that the economic development of all the countries which has developed as well as developing economic features lies with the sound GDP and Per-capita level.    

Let us derive the basic factors which determines the essence of arguments of development economists. 1) If the poor global level market crisis tends to happen the market conditions become worse and the GDP level drastically reduces from normal leel to the abnormal level. 2) Due to poor market conditions the production of goods and services tends to reduce and also sales level decreases. 3) Firms's revenue level also reduces as the firms due to low sales volume and leads to low employment and also leads to decrease in consumption habits and income level.