Economic Growth and Development Theories Quiz

<p>Education and infrastructure</p> Signup and view all the answers

<p>It leads to higher living standards for people</p> Signup and view all the answers

<p>To provide the physical goods used to produce other goods and services</p> Signup and view all the answers

<p>Technological progress</p> Signup and view all the answers

<p>Take-off</p> Signup and view all the answers

<p>To introduce new products and services</p> Signup and view all the answers

<p>To increase the knowledge of how to produce goods and services</p> Signup and view all the answers

<p>Technology = Leads to increased TFP and economic growth Education = Can lead to increased TFP and economic growth Infrastructure = Can lead to increased TFP and economic growth Entrepreneurship = Can lead to increased TFP and economic growth</p> Signup and view all the answers

<p>Traditional society = Low level of technology, high proportion in agriculture, subsistence economy Preconditions for take-off = Developing necessary infrastructure and institutions for growth Take-off = Rapid economic growth driven by industrialization and technological progress Drive to maturity = Continued but slower economic growth, shift from manufacturing to services</p> Signup and view all the answers

<p>Labor (quality and quantity) = Important determinant of economic growth Capital investment = Essential for economic growth Entrepreneurship = Essential for introducing new products, creating jobs, and driving innovation Total factor productivity (TFP) = Measure of how efficiently input factors are used to produce output</p> Signup and view all the answers

<p>Capital investment = Physical goods used to produce other goods and services Entrepreneurship = Ability to identify and exploit new business opportunities Total factor productivity (TFP) = Measure of input factor efficiency in producing output Linear stages of growth models = Economic development models positing stages from traditional society to modern economy</p> Signup and view all the answers

<p>Technology = Knowledge of how to produce goods and services, leads to increased TFP and economic growth Linear stages of growth models = Posit that countries pass through stages from traditional society to modern industrialized economy Infrastructure = Physical and institutional framework supporting economic activity, can lead to increased TFP and economic growth Education = Process of acquiring knowledge and skills, can lead to increased TFP and economic growth</p> Signup and view all the answers

<p>Land = Includes all natural resources like minerals, forests, and arable land Labor = Human input into the production process Capital = Goods produced and used to produce other goods and services Entrepreneurship = The ability to innovate and take risks in starting new businesses</p> Signup and view all the answers

<p>Technology = Improves efficiency and enhances production processes Education = Enhances human capital and contributes to skill development Infrastructure = Facilitates smooth functioning of economic activities and trade Land = Provides natural resources essential for goods and services production</p> Signup and view all the answers

<p>Rostow model = Characterized by stages of traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption Solow model = Emphasizes the role of technology and productivity in economic growth Harrow model = Focuses on the importance of human capital in economic development Nelson-Phelps model = Incorporates the influence of employment and wage setting on economic growth</p> Signup and view all the answers