ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an elite group initiates innovative activities
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Most of the labor force remains in the uneducated and in primary sector jobs
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take-off industries achieve technical advances
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workers become more skilled and specialized
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the economy shifts from production of heavy industry to consumer goods
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Detailed explanation-1: -According the Rostow, the process of development begins when an elite group initiates innovative economic activities. Under the influence of these well-educated leaders, the country starts to invest in new technology and infrastructure, such as water supplies and transportation systems.
Detailed explanation-2: -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-3: -Takeoff is a stage marked by rapid economic growth based upon a few key economic industries or sectors, such as steel, railroads, textiles, and food production.
Detailed explanation-4: -Take-Off Stage People begin to use their individual talents to produce things beyond the necessities. This innovation creates new markets for trade. In turn, greater individualism takes hold and social status is more closely linked with material wealth.
Detailed explanation-5: -Take-off occurs when sector led growth becomes common and society is driven more by economic processes than traditions. At this point, the norms of economic growth are well established and growth becomes a nation’s “second nature” and a shared goal.