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The best Index of Economic Development is provided by:
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- Growth in Percapita Real Income from year to year.
- Growth in National Income at Current Prices.
- Growth in savings ratio.
- Improvement in the Balance of Payments Position.
- Growth in Percapita Real Income from year to year.
Correct Option: B
Per capita Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a country with its population. Higher the level of per capita income, higher is the economic development. The World Bank, in its world development report 1998, classified the countries in the world on the bases of per capita GNP.
