Which of the Following Is True of Stage 1 of Rostow's

question 29

Multiple Choice

Which of the following is true of Stage 1 of Rostow's five-stage model of economic development?

• A) The economy is primarily driven by the production of services.
• B) The most important industrial demand relates to natural resources extraction.
• C) Infrastructure development is a primary requirement in the economy.
• D) Manufacturing of both semidurable and nondurable consumer goods has begun.
• E) The focus is on low-cost manufacturing of a variety of consumer and some industrial goods.

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Definitions:

Interest Paid

Interest paid refers to the amount of money paid over a period for the use of borrowed funds, representing the cost of borrowing to the debtor.

Net Working Capital

The variance between a business's current holdings and outstanding debts, signifying the entity's short-term economic condition and operational competence.

CCA Rate

The Capital Cost Allowance rate, which determines the percentage of an asset's cost that can be claimed as depreciation for tax purposes in Canada.

CCA

Capital Cost Allowance; a tax deduction in Canada for the depreciation of tangible property.