ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stage 1:Traditional Society
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Stage 2:Pre-Condition for Take-Off
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Stage 3:Take-Off
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Stage 4:Drive to Maturity
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Stage 5:High Mass Consumption
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Detailed explanation-1: -The preconditions for take-off In the second stage of economic growth, the economy undergoes a process of change for building up of conditions for growth and take off. Rostow said that these changes in society and the economy had to be of fundamental nature in the socio-political structure and production techniques.
Detailed explanation-2: -Take-off: Rostow describes this stage as a short period of intensive growth, in which industrialization begins to occur, and workers and institutions become concentrated around a new industry.
Detailed explanation-3: -Stage # 1. This limit arises due to the absence of access to modern science and technology. This type of a society allocates a large proportion of its resources to agriculture and is characterised by a hierarchical social structure in which there is little possibility for vertical mobility.
Detailed explanation-4: -A country is said to have taken off in terms of economic growth if it has effectively applied radical changes to its available resources and has set forth on a path of sustained economic growth extending for decades (Rostow 1960).