ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In an advanced economy, population and economic growth tend to be stable and investment is weighted more toward consumption and quality of life. Developing or emerging market economies, on the other hand, tend to spend big on infrastructure and other fixed asset projects to power economic growth.

Detailed explanation-2: -There is no official definition of an emerging market. The IMF World Economic Outlook classifies 39 economies as “advanced, ” based on such factors as high per capita income, exports of diversified goods and services, and greater integration into the global financial system.

Detailed explanation-3: -Economic growth is driven oftentimes by consumer spending and business investment. Tax cuts and rebates are used to return money to consumers and boost spending. Deregulation relaxes the rules imposed on businesses and have been credited with creating growth but can lead to excessive risk-taking.

Detailed explanation-4: -Economic development is a critical component that drives economic growth in an economy, creating new job opportunities and facilitating an improved quality of life that includes increased access to opportunities created by economic growth for existing and future residents.