A Lorenz curve that becomes less bowed out implies:
A. no change in income distribution.
B. a change in income distribution toward more equality.
C. an increase in poverty.
D. a change in income distribution toward more inequality.
Answer: B
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The unbalanced development strategy is preferred by many economists because
a. it relies on the vast resources of government rather than on the unreliable promises of private investment b. it creates a dynamic chain reaction of economic development c. it promotes economic dualism d. it overcomes the obstacles created by forward and backward linkages e. it favors demand-induced investments over supply-induced investments
The theory of relative backwardness
a. formulated by Rostow b. called for substitutions for missing preconditions c. explained the industrial revolution d. was an idea of Gerschenkron e. both b and d are correct