Which of the Following Is Characteristic of Stage 2 of Rostow's

question 91

Multiple Choice

Which of the following is characteristic of Stage 2 of Rostow's five-stage model of economic growth?

• A) Industrial demand is mainly associated with natural resources extraction.
• B) The goods demanded relate to equipment and supplies to support manufacturing.
• C) The focus is more on low-cost manufacturing of a variety of consumer and some industrial goods.
• D) The focus is on design activities and the development of manufacturing techniques.
• E) Infrastructure development is the primary requirement in the economy.

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Definitions:

Employer Responsibility

The obligations and duties of an employer towards their employees, which can include providing a safe working environment and fair pay.

After-Tax Rate

The rate of return on an investment after accounting for taxes.

Diversified Portfolio

An investment portfolio composed of a variety of assets to reduce exposure to risk associated with any single asset or industry.

Capital Gains

The profit earned from the sale of assets or investments, such as stocks or real estate, measured by the difference between the sale price and the original purchase price.