7.5 Theories of Development

• GDP per capita measures the total economic output per person.

  True
• What type of investments drive economic growth in the preconditions for take-off stage?

  Infrastructure and education
• How does the traditional society stage differ from the take-off stage in Rostow's theory?

  Subsistence agriculture vs. industrialization
• Core countries extract resources and labor from periphery countries.


  True
• Economic development reduces poverty and creates a more equitable society
• Arrange the stages of Rostow's Modernization Theory in their correct order.

  1️⃣ Traditional Society

  2️⃣ Preconditions for Take-Off

  3️⃣ Take-Off

  4️⃣ Drive to Maturity

  5️⃣ Age of High Mass Consumption
• Rostow's theory suggests that all countries follow the same linear path to development.

  True
• What is the core argument of Dependency Theory?

  Exploitation by core nations
• What role do core nations play in Dependency Theory?

  Exploit periphery countries
• Semi-periphery countries have rising economies but remain dependent on core countries.
• Match the theory with its main idea: Human Capital Theory or Rostow's Modernization Theory.

  Human Capital Theory ↔️ Skills boost productivity

  Rostow's Modernization Theory ↔️ Development stages
• Human Capital Theory emphasizes that educated individuals earn higher wages.


  True
• Match the stage of Rostow's Modernization Theory with its key characteristic:

  Take-Off ↔️ Rapid industrialization

  Traditional Society ↔️ Subsistence agriculture

  Drive to Maturity ↔️ Technological advancement

  Age of High Mass Consumption ↔️ Shift to services
• Dependency Theory emphasizes unequal trade as a mechanism that favors core countries.

  True
• Order the zones of World Systems Theory from most developed to least developed

  1️⃣ Core

  2️⃣ Semi-periphery

  3️⃣ Periphery
• World Systems Theory suggests that global relations need to be restructured
• World Systems Theory suggests that countries progress through linear stages of development.

  False
• Match the theory with its focus:

  Human Capital Theory ↔️ Enhancing human skills through education

  Modernization Theory ↔️ Stages of economic development
• SAPs have been criticized for increasing poverty due to reduced social spending.


  True
• Sustainable development balances economic, social, and environmental objectives.


  True
• What does economic development encompass beyond economic growth?

  Life expectancy, education, healthcare
• What three factors does the Human Development Index (HDI) measure?

  Health, education, income
• In the age of high mass consumption, the economy shifts towards services and consumer goods
• Match the stage of Rostow's theory with its key characteristic.

  Traditional Society ↔️ Subsistence agriculture

  Take-Off ↔️ Rapid industrialization

  Age of High Mass Consumption ↔️ Consumer goods and services
• Andre Gunder Frank is a key theorist of Dependency Theory.
• Core countries benefit from the exploitation of periphery countries in World Systems Theory.


  True
• Educated individuals contribute more effectively to the economy.


  True
• The main idea of Human Capital Theory is that skills boost productivity and growth
• Stages of Rostow's Modernization Theory in chronological order

  1️⃣ Traditional Society

  2️⃣ Preconditions for Take-Off

  3️⃣ Take-Off

  4️⃣ Drive to Maturity

  5️⃣ Age of High Mass Consumption
• Dependency Theory argues that developing countries are kept in a state of dependency due to exploitation by core
• Match the feature with the correct theory:

  Global inequalities ↔️ Dependency Theory

  Linear progression ↔️ Modernization Theory
• Match the zone with its description:

  Core ↔️ Dominant countries with advanced industries

  Periphery ↔️ Less developed nations providing raw materials

  Semi-periphery ↔️ Intermediate countries reliant on core nations
• Enhanced productivity from education contributes to economic growth.


  True
• Fiscal austerity in SAPs involves reducing government spending
• Match the principle of sustainable development with its description:

  Intergenerational equity ↔️ Meeting present needs without compromising future generations

  Environmental protection ↔️ Ensuring responsible use of natural resources

  Economic viability ↔️ Promoting financially sustainable growth
• What are the three zones in World Systems Theory?

  Core, periphery, semi-periphery
• What does Human Capital Theory emphasize for economic growth?

  Education and skills development
• What does investment in education lead to according to Human Capital Theory?

  Higher productivity
• What is enhanced productivity a result of in Human Capital Theory?

  Education
• What does Rostow's Modernization Theory suggest about economic development?

  Linear progression