1. Under developed & Develop Economies

2. Underdeveloped Economy
The co-existence of greater or less degree of unutilized manpower.
Unexploited natural resources
Owing to vicious circle of poverty resources are not fully utilised
Per capita income is low as compared to developed countries
Techniques of production is conventional ,inefficient and orthodox
There is potential of growth

3. Causes of Under Development: Economic Causes
Market imperfection
Immobile labour
Ignorance of market conditions
Monopolistic practices
Inflexible economy
Lack of capital formation
Problem of population
Lack of modern enterprise
Technical obstacles
International obstacles

4. Causes of Under Development: Noneconomic Causes
Social Causes
Religious Causes
Political Causes
Administrative Causes

5. Economic Development Improvement in health facilities
Educational facilities
Improvement in overall quality of life of living
Increase in per capita income
Reduction in malnutrition ,disease , illiteracy , unemployment and inequalities

6. Approaches Traditional Approach Modern Approach
Increase in Real National Income
Increase In Economic Welfare OR
Increase in Real Per capita Income

7. Traditional Approach Definition regarding increase in National Income
Meaning of Real National Income
R= Y/P
R= Real Income;
Y= Monetary Income at current price
P= Price Index Level
Definition regarding increase in Real Per Capita Income
PCI=NI/Size of population
Real PCI= Real NI/ Population

8. Modern Approach
According to Peterson ,”Economic development is a process whereby the real per capita income and economic welfare increase over a period of time.”
Indicators of Modern Approach
Rise in real PCI
Increase in Economic welfare
Improvement in Health facility
Better Education facilities
Judicious use of natural resources

9. Features of Economic Development
Increase In Real National Income
Increase In Real Capita Income
Reduction In Income Inequalities
Structural Changes
Growth Over Long Period
Human Development
Reduction In Poverty
Institutional Development
Infrastructural Development

10. Need of Economic Development
Increase In National Income
Increase in Per capita income
High Standard Of Living
More Capital Formation
Less Dependence On Agriculture
Full Utilization Of National Resources
Self-sufficiency
Increase In Employment Avenues
Solution Of Vicious Circle Of Poverty
Formation Of Human Capital

11. Determinants of Economic Development
It depends on:-
Size
Organization
Capacity of an economy
Nature of production

12. Economic Determinants
Natural Resources
Labour or Human Resources
Structural Changes
Size Of The Market
Capital Formation
Capital-output Ratio
Scientific And Technical Progress
Financial Stability
Able Entrepreneurs And Organization
Development Planning
International Determinants

13. Non Economic Determinants
Desire For Development
Spread Of Education And Skill Formation
Political Determinants
Social Determinants
Religious Determinants
Freedom From Corruption
Law And Order Situation

14. Distinction between economic growth and economic development
Narrow concept
Broad concept
Quantities
Qualitative
Continuous changes
Discontinuous changes
Related with developed nations
Related with under developed nations