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Posted By: MUHAMMAD SAQIB

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Economic Indicators of Development and Thier Importance. 

Most of the economists differentiate rich and poor nations by one or more of three measures which are also called development indicators:

  • Per capita GNP,
  • Per capita energy consumption, 
  • Percentage of labour force in primary activities.

1):  Per capita GNP.

This measures seems the best indicator of economic well-being. Per capita data is obtained by dividing total national income to the nation's pipulation. Per capita data are thus average values. In many poor nations, average value do not apply to large segments of the population, because wealth is concentrated in the hands of a few. In many poor nations, for example, Ethiopia have per capita gnp values so low that is inconceivable that the vast majority could physically survive, but they do. 

2):  Per capita enegy consumption. 

Just as per capita GNP is a measure of productivity in terms of values, per capita inanimate energy use is a measure of production in terms of power expended. There is a close relationship between energy consumption and degree of economic activity. Low pwr capita energy consumption is associated with subsistence and other forms of non mechanized agricultural economies,high per capita energy use with industrialized societies. 

3):  Labour force in primary activities. 

In general, nations with a large part of their labour force in primary activities are less able to produce income. On the other side a nation that has strong secondary and tertiary components in its labour force usually has a greater per capita gnp and consumes more energy. Of all the primary activities, agriculture is the most important. 

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