Linear-Stages-of-Growth Model Overview

False (B)

Necessary structural, institutional, and attitudinal conditions.

<p>underutilization</p> Signup and view all the answers

<p>Harrod-Domar Model = Assumes constant capital-output ratio Lewis Two-Sector Model = Describes traditional and modern sectors Rostow Model = Describes stages of economic growth Marshall Plan = Aid program facilitating European recovery</p> Signup and view all the answers

<p>More savings and investments (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Transforming from traditional subsistence agriculture to a more modern economy.</p> Signup and view all the answers

<p>False-Paradigm Model (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>The coexistence of two mutually exclusive situations, such as wealth and poverty.</p> Signup and view all the answers

<p>International-Dependence Revolution</p> Signup and view all the answers

<p>False-Paradigm Model = Development failures due to incorrect Western advice International-Dependence Revolution = Focus on the control of developing nations by developed countries Dualistic-Development Thesis = Coexistence of wealth and poverty in society Chenery Model = Poses standard patterns for development</p> Signup and view all the answers

<p>The presence of wealth is beneficial to all sectors (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>domestic</p> Signup and view all the answers

<p>They should pursue autarky or inwardly directed development. (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Freer markets and dismantling of public ownership.</p> Signup and view all the answers

<p>poor resource allocation</p> Signup and view all the answers

<p>Autarky = Policy of inwardly directed development Neoclassical Revolution = Resurgence of free-market policies Foreign Aid = Financial assistance to support development Government Intervention = Action that is seen as hindering economic growth</p> Signup and view all the answers

<p>Statism (C)</p> Signup and view all the answers

<p>Government corruption and inefficiency (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>autarky</p> Signup and view all the answers

<p>South Korea</p> Signup and view all the answers

<p>invisible</p> Signup and view all the answers

<p>The Free-Market Approach = Markets are efficient without government intervention. Public-Choice Theory = Self-interest guides individual behavior. Market-Friendly Approach = Governments should create conditions for efficient market operations. Statist Model = High degree of government control over the economy.</p> Signup and view all the answers

<p>Self-interest motivates all individuals. (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Market distortion</p> Signup and view all the answers

<p>Implementing local solutions (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Intelligent and equity-oriented intervention</p> Signup and view all the answers

<p>universally</p> Signup and view all the answers

<p>Market Pricing = Incentives for resource allocation Public Intervention = Government action to prevent market failures Local Solutions = Responses tailored to specific country constraints Universal Doctrine = A one-size-fits-all economic theory</p> Signup and view all the answers

<p>Prices as signals and incentives (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Facilitate the development of markets and shared growth</p> Signup and view all the answers

<p>Traditional society (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Successive stages of economic growth</p> Signup and view all the answers

<p>fifth</p> Signup and view all the answers

<p>It assumes all countries desire to develop in the same way. (D)</p> Signup and view all the answers

<p>Rostow’s Model = Series of successive stages of growth Harrod-Domar Model = Growth dependent on savings and investment AK Model = Output depends on capital stock times a constant Linear-Stages-of-Growth = Development path based on Western experiences</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Mobilization of savings</p> Signup and view all the answers

A theory proposing that all countries follow a set path of successive development stages.

A model of economic growth that assumes a constant capital-output ratio and does not take into account labor force growth or technological change.

The ability of investments to produce higher levels of output.

A model proposing five stages of economic growth: traditional, pre-take-off, take-off, drive to maturity, and high mass consumption.

A model emphasizing the relationship between saving, investment, and economic growth.

A model that assumes development as a series of stages that all countries go through

Economic growth that can continue over time without depleting resources or causing harm.

Necessary but not sufficient conditions for development.

The process of improving the economic well-being and living standards of a country or region.

Succeeded due to receiving countries having pre-existing conditions (structural, institutional, and attitudinal) needed to effectively use the aid.

Focus on the transformation of a country's economic structure from a traditional agricultural to a more modern, industrial economy and urbanized.

Essential factors for economic growth; savings are used for investments which help to grow the economy.

The model assumes a single path to development, which may not be applicable to all countries.

A model explaining development through the transfer of surplus labor from a traditional agricultural sector to a modern industrial sector.

A result of under-usage of resources due to structural or institutional factors within a country.

A decisive stage of rapid economic growth and self-sustaining development

Developing countries' failure to develop is due to flawed development strategies often imposed by Western economists.

Developing countries are economically controlled by developed nations.

Concept of a world with rich and poor nations, and within developing countries, coexistence of wealth and poverty.

Coexistence of opposite conditions (e.g., poverty and wealth, modern and traditional), in a society, hindering development.

The ongoing and persistent coexistence of the contrasting conditions of dualistic-development.

The idea that there isn't a specific path to development that developing countries need to follow. There's not an assured, specific path to following.

The theories don't explain how countries start and maintain development.

Advisors from developed nations who provide development strategies to developing countries.

Development approach emphasizing free markets and limited government intervention as solutions to underdevelopment.

Underdevelopment arises from poor resource allocation due to incorrect pricing policies and excessive government intervention.

Excessive government involvement in economics hinders economic growth, according to Neoclassical theorists.

A policy of economic self-sufficiency, avoiding trade with other countries.

Economic systems relying on the forces of supply and demand with minimal government intervention.

The experience of developing countries trying to nationalize industries and steer production has largely resulted in negative economic outcomes.

Economies with both modern and traditional sectors. Often need reform.

The idea that free markets are efficient, and government intervention is harmful.

An economy with significant government control and intervention.

Self-interest drives all actions within government. Government is inefficient.

Government plays a role in creating a market-friendly environment, but intervention is limited. It targets market inefficiencies.

The concept of market forces guiding resource allocation.

A system where prices dictate efficient production and distribution.

Businesses owned and controlled by the government.

Government efforts to control and direct economic development.

Developing economies often have vastly different structures and organizations compared to Western counterparts, making traditional economic theories less reliable in their context.

Governments in developing countries face challenges in applying economic policies effectively. They need to carefully balance market forces and public intervention to achieve optimal outcomes.

Developing countries require a strategic combination of market mechanisms and government intervention for growth. Markets can be used for efficient resource allocation, while government intervention can address market failures and inequality.

Developing countries have unique challenges and strengths. Therefore, a one-size-fits-all approach to development doesn't work. Each country requires tailored solutions based on its specific context.

Developing nations should prioritize solutions that address their specific challenges and resources. This often means adapting existing models or creating new ones.

Development economics is constantly evolving, reflecting the changing economic landscape and the emergence of new challenges. There's no single 'best' theory for all countries.

Economic development requires a careful mix of market forces, government intervention, and equity. This means promoting efficient markets where possible, while addressing market failures and ensuring social justice.

Well-designed government policies can facilitate the creation of markets and promote inclusive growth. They can provide infrastructure, support innovation, and address social issues.