ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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drive to maturity
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high mass consumption
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traditional
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preconditions to takeoff
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Detailed explanation-1: -Using these ideas, Rostow penned his classic Stages of Economic Growth in 1960, which presented five steps through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and 5) age of high mass consumption.
Detailed explanation-2: -Rostow’s third stage is known as takeoff. In this stage, a handful of key new industries start to emerge in the national economy that help drive further economic growth. For example, the development of a steel industry may drive growth in an economy with ready access to iron ore.
Detailed explanation-3: -Stage 1 Traditional Society-The economy is dominated by subsistence activity. Output is consumed by producers; it is not traded. Trade is barter where goods are exchanged directly for other goods. Agriculture is the most important industry.
Detailed explanation-4: -A traditional society is one whose structure is developed within limited production functions, based on pre-Newtonian science and technology, and on pre-Newtonian attitudes towards the physical world.