Economic Growth & Development Section/ Rita Hanna/ 2024
Economic Growth & Development
Section (4) – Questions
Linear-stages of growth model
True and false questions:
1) Theories and pattern of structural change attributes the process of development as a series of
successive stages of economic growth through which all countries must pass.
2) Theories and pattern of structural used modern economic theory and statistical analysis in an
attempt to portray structural the internal process of change.
3) The neoclassical, free market counterrevolution was more radical and more political.
4) The international-dependence revolution viewed underdevelopment in terms of international
and domestic power relationship, institutional and structural economic rigidities.
5) The main contributors according to the linear stages of growth model are the domestic saving
and investment only.
6) Failure to develop was primarily the result of too much government intervention and
regulation of the economy is the main idea of the neoclassical, free market counterrevolution
strand of thought.
7) Rostow’s stages of growth is a functional Economic relationship.
8) The advanced countries had all passed the stage of “take-off into self-sustaining growth”.
9) According to Rostow, the transition from underdevelopment to development can be described
in terms of a series of steps or stages through which all countries must proceed.
10) One of the principal strategies of development necessary for any take-off was the
mobilization of domestic and foreign saving in order to generate sufficient investment to
accelerate economic growth.
11) The growth rate of national income will be directly or positively related to the savings ratio
and to the economy’s capital-output ratio.
12) The actual rate at which the Economy can grow for any level of saving and can be measured
by the capital-output ratio.
13) The mechanisms of development embodied in the theory of stages of growth always work.
14) In Harrod Domar model, if the growth rate of income is 8%, the capital output ratio is 4%.
the saving rate will be equal to 2%.
15) If you know that the required per-capita growth rate is 4% and the population growth rate
is 3%. The required aggregate growth rate equal to 12%.
16) The Harrod-Domar model predicts that if the saving rate is 20% and the capital output ratio
is a constant equal to 2, then the economy will grow at a rate of 10%.
