Assertion (A) : Industrialization of an economy is considered synonymous with growth. Reasoning (R) : The transfer of resources from agrarian to industrial may be capital or labour or both. Codes :
Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): In development economics, industrialization is regarded as the engine of growth, because industry raises productivity, output and incomes; hence industrialization is commonly treated as synonymous with growth. A is true.
Reasoning (R): In dual-economy models (such as Lewis’s), development involves a transfer of resources from the agrarian sector to the industrial sector, and the resources transferred may be capital (agricultural surplus), labour (surplus labour) or both. R is true.
However, R only describes the form in which resources move between sectors; it does not explain why industrialization is considered synonymous with growth. So R is not the correct explanation of A.
Hence, the answer is Both (A) and (R) are true but (R) is not the correct explanation of (A)..
Similar Questions
The Human Development Index (HDI) is introduced by :
Important Questions from Economic Growth & Development
- The following Economics Terms can be arrange in chronological order on the basis of the concept development :
(i) Scarcity definition.
(ii)wealth definition
(iii)Growth definition.
(iv) welfare definition. - What is the key distinction between productive and non-productive work in Classical Economic Theory?
- Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for optimum capital accumulation ? Choose from the code below :
I. Savings rate is unique.
II. Marginal productivity of capital be equal to capital depreciation.
Codes : - Which of the following is the correct assumption for the Lewis two sector model ?
- Which of the following is a major indivisibility of Rosenstein-Rodan Model of development ?
