ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the takeoff stage
|
|
|
the transition stage
|
|
|
the high development stage.
|
|
|
the semi-development stage
|
Detailed explanation-1: -Age of High Mass Consumption: At the time of writing, Rostow believed that Western countries, most notably the United States, occupied this last “developed” stage. Here, a country’s economy flourishes in a capitalist system, characterized by mass production and consumerism.
Detailed explanation-2: -The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion.
Detailed explanation-3: -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-4: -Stage 5 High Mass Consumption The economy is geared towards mass consumption, and the level of economic activity is very high.
Detailed explanation-5: -Stages of Economic Growth and Economic Development Still, most development economists agree that the key stages of development are related to three different transitions: a) a structural transformation of the economy, b) a demographic transition, and c) a process of urbanization.