(A) The traditional society
(B) Drive to maturity
(C) Take-off
(D) Period of high mass consumption
(E) Pre conditions for take-off
Choose the correct answer from the options given below :
W.W. Rostow's model of economic growth, known as the "Stages of Economic Growth," outlines five distinct stages through which a country's economy and social progress typically transition. To answer the question, we need to arrange these stages in their correct sequence as per Rostow's theory:
- The Traditional Society (A): This is the first stage, characterized by an agrarian economy with limited technology and a static society. The focus is on subsistence agriculture.
- Preconditions for Take-off (E): The second stage involves developing infrastructure, creating a better financial system, and investing in education to prepare for economic growth.
- Take-off (C): The third stage marks a period of rapid growth where industrialization begins, and economic and institutional growth extends significantly.
- Drive to Maturity (B): In the fourth stage, the economy diversifies, moving beyond agriculture and industry, and growth continues in multiple sectors.
- Period of High Mass Consumption (D): This is the final stage where the economy reaches a point of prosperity, and consumer goods become increasingly available to a large portion of the population.
Therefore, the correct sequence of the stages as per W.W. Rostow's model is:
- (A) The traditional society.
- (E) Pre conditions for take-off.
- (C) Take-off.
- (B) Drive to maturity.
- (D) Period of high mass consumption.
Based on this arrangement, the correct answer is: (A), (E), (C), (B), (D).
Option Analysis:
- (A), (B), (C), (E), (D): This sequence misplaces the preconditions for take-off and drive to maturity stages.
- (A), (C), (B), (D), (E): This option incorrectly places 'Pre conditions for take-off' after 'Period of high mass consumption'.
- (A), (D), (B), (C), (E): This option misorders several stages and does not follow Rostow's model correctly.
Therefore, the answer (A), (E), (C), (B), (D) correctly follows the theory proposed by W.W. Rostow.
Important Questions from Economic Growth & Development
- According to Rostow, any industry can play the role of leading sector in the take-off stage provided following conditions are met.
A. The market for the product is expanding rapidly
B. The leading sector generates secondary expansion
C. The sector has an adequate and continual supply of capital from ploughed-back profits.
D. Introduction of new techniques into the sector to increase productivity
Ε. Changes in industrial structure should be structural ones
Choose the most appropriate answer from the options given below : Match List-I with List-II:
List-I
(Concepts)List-II
(their expression)
(where, gm=manufacturing output growth, gGDP=GDP growth, Pnm=productivity in outside manufacturing,
Pm=Productivity in manufacturing)A. Kaldor's first law of growth I. Pnm = f(gm), f' > 0 B. Kaldor's second law of growth II. ȳ = ε · (u − u*) C. Kaldor's third law of growth III. gGDP = f(gm), f' > 0 D. Okun's law IV. Pm = f(gm), f' > 0 Choose the correct answer from the options given below :
- The idea of constructing poverty-weighted indices of growth is.
- In the context of neoclassical growth model, the effects of an increase in population growth rate is/are.
A. Reduction in steady-state level of capital per head
B. Increase in per capita output
C. Increase in steady state rate of growth of aggregate output
D. Decrease in capital-output ratio
Ε. An inward shift in production possibility curve.
Choose the most appropriate answer from the options given below: - Arrange the following publications in chronological order starting from the oldest to the latest.
A. "Theory of Economic Growth" by Arthur Lewis
B. "A Contribution to the Theory of Economic Growth" by Robert Solow
C. "The Stages of Economic Growth: A Non Communist Manifesto" by Walt Rostow
D. "Asian Drama: An Inquiry into the Poverty of Nations" by Gunnar Myrdal
Ε. "Strategy of Economic Development" by Albert Hirschman
Choose the correct answer from the options given below :
