Nurkse's theory of balanced development
Vicious circle of poverty
Keynes's low employment theory
Harshman's theory of unbalanced development
Answer is Right!
Answer is Wrong!
The correct answer is: A. Nurkse’s theory of balanced development
Nurkse’s theory of balanced development is based on the market law of ‘Say’s’, which states that supply creates its own demand. This means that if there is an increase in the supply of goods and services, there will also be an increase in the demand for those goods and services. This theory is often used to argue that economic growth can be achieved by increasing the supply of goods and services.
The other options are not based on the market law of ‘Say’s’.
- B. Vicious circle of poverty is a theory that argues that poverty can be self-perpetuating. This is because poverty can lead to low levels of investment, which can lead to low levels of economic growth, which can lead to more poverty.
- C. Keynes’s low employment theory is a theory that argues that unemployment can be caused by a lack of aggregate demand. This is because if there is not enough demand for goods and services, businesses will not hire as many workers.
- D. Harshman’s theory of unbalanced development is a theory that argues that economic development can be achieved by focusing on a few key sectors of the economy. This is because if these sectors grow rapidly, they can pull the rest of the economy along with them.