Unit 7: Industrial & Economic Development

According to Rostow's stages of development, which of the following is true?

• All countries will eventually pass through all 5 stages.

• The colonial legacy will impede a country's economic growth

• Foreign investment is a necessary precondition for economic development in the second stage.

• Countries might not pass through each of the stages in a linear manner.

• Deindustrialization is accounted for in the fifth and final stage.

Answer explanation

Rostow's stages assume that all countries will eventually pass through each of the five stages.

The colonial legacy is NOT accounted for in Rostow's stages (this is a criticism of the model).

The second stage there are preconditions like the development of infrastructure and foreign trade relations but not foreign investment.

The fifth and final stage is high mass consumption, not deindustrialization.

According to Immanuel Wallerstein's world-systems theory, the modern network of global economic interdependence and competition began

• when the European nations began exploring outside of their continent in the 1600s

• with the spread of the Industrial Revolution from northern Europe to Asia

• in the early 1990s with the collapse of the Soviet Union and fall of communism

• after the United States resumed trade with Great Britain following the American Revolution

• with the spread of capitalism at the end of the 19th century

In the core-periphery model of global economic patterns, all of Africa is included in the periphery EXCEPT

• Zimbabwe

• Morocco

• South Africa

• Liberia

• Egypt

Which of the following is an example of quaternary economic activity?

• Entertainment

• Research and development

• Oil production

• Agriculture

• Transportation

The Human Development Index is a measure of both economic production and

• social indicators

• population density

• unemployment rates

• income per capita

• income disparity

In which of the following regions is life expectancy the lowest?

• Northern Europe

• The Middle East

• Southeast Asia

• Sub-Saharan Africa

• Central America

All of the following are criticisms of using gross domestic product (GDP) as a measure of standard of living for residents of a country EXCEPT

• It does not measure the distribution of wealth.

• It is possible for GDP to increase and for real incomes in a country to decline under certain conditions

• It is measured in a consistent way worldwide.

• It does not take the nonmentary economy into account.

• It does not measure economic externalities.

All of the following are true of the Industrial Revolution EXCEPT

• Technological advancements such as steam power and machine tools helped make the IR possible.

• Despite social and economic problems, standards of living and incomes increased for most people in industrializing countries.

• The IR marked the transition from manual labor and animals to mechanization.

• One of the first industries transformed by the IR was the textile industry.

• Industrialization happened nearly simultaneously in most areas of the world in the 18th century.

In Immanuel Wallerstein's world-system theory, core countries in Europe in the 15th and 16th centuries had an advantage in commerce and used this to

• subjugate and colonize peripheral and peripheral countries

• develop equal trading relationships with peripheral countries

• share technologies and economic practices with semi peripheral countries

• establish trading networks free of trade barriers with other core countries

• integrate the peoples of peripheral and semi peripheral countries into their societies.

The gross domestic product per capita is a measure of the total goods and services produced by a country divided by that country's

• unemployment rate

• gross national product

• total population

• number of corporations

• total number of exports