Macroeconomic Growth Factors

Economic growth refers to an increase in output, whereas economic development includes qualitative improvements in living standards and social indicators. It is possible to have growth in GDP without corresponding improvements in human development.

There are many characteristics of human development. Humans are viewed as developed when they have a good education, health, good employment opportunities, decrease in unemployment rates and gender equality etc. The educated population uses modern methods to increase the productivity of labour. Thus, human development increases the productivity of labour.

Thus, the correct answer is B.

Human development is defined as the process of enlarging people's freedoms and opportunities and improving their well-being. Human development is about the real freedom ordinary people have to decide who to be, what to do, and how to live. The  Human development concept was developed by economist Mahbub ul Haq.

Economic development is a complex, long-term, and multi-dimensional process involving structural changes in the economy.

Economic development is broader than economic growth; it includes improvements in health, education, and social welfare.

Privatization refers to giving greater role to private sector and reducing the role of public sector through disinvestment of public sector and dilution of stake of the government. Privatization results in better economic development due to more resources from private sector, better management due high competition in private sector and encouragement of entrepreneurial skills into the individual. 

Economic development refers to the development and growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. 

The developed economies deals with other under developed economies. Therefore, these developed countries demand development of all the poor countries so that these countries can achieve a higher prosperity. Moreover, these developed countries have understood that poverty anywhere in the world is a thread to prosperity everywhere.

 Therefore, the developed economies mainly focus on economic development to avoid cyclic fluctuation of their economy.

Underdeveloped countries pursue economic development to address multiple goals, including poverty reduction, increasing their influence on the global stage, and building internal economic strength.

Economic growth is specifically defined as the increase in a country's real per capita income over a long period of time.

The primary focus of economic growth is the increase in per capita income, which serves as a proxy for the average standard of living.

Before the 1970s, economic development was largely viewed through a narrow lens of economic indicators like GDP growth. The 1970s marked a shift toward more multidimensional views including social and human development.

The traditional approach to economic development focuses primarily on quantitative metrics, specifically the growth of real per capita income. It contrasts with modern approaches that incorporate qualitative indicators like poverty and inequality.

The traditional approach defines economic development narrowly, focusing on measurable economic indicators such as GDP or per capita income growth, rather than broader social or environmental outcomes.

Economic growth is primarily quantitative, but when discussing development, it is often accompanied by qualitative improvements, such as increased efficiency in the use of inputs and better resource allocation.