Question

The view that defines economic development as a reduction of poverty and employment as well as an increase in income is called the human development approach.

a) True
b) False

Answer 1

The human development approach to economic development includes a reduction of poverty, an increase in employment, and a rise in income, and focuses on improving overall human well-being rather than just economic growth. The correct option is A.

Step-by-step explanation:

The view that economic development is characterized by a reduction of poverty, an increase in employment, and a boost in income is part of the human development approach.

This perspective views economic development as a broad, transformative process that not only focuses on quantitative growth in GDP but also prioritizes qualitative changes in the standards of living, including education, health, and social equality.

Policies that aim to alleviate poverty and bridge income inequality often seek to improve living conditions and create more equitable access to resources, which in turn can lead to more inclusive and sustainable growth. The human development approach goes beyond mere economic metrics and indices, integrating human well-being and social factors into the equation of development.

Given the multi-faceted nature of economic development, including institutional and cultural evolution, the answer to the student's question is true: The human development approach does indeed define economic development as a reduction in poverty and unemployment, alongside an increase in income.