Moderate

Experiences over the last three decades has suggested that in order for economic development to occur, it is necessary for an economy to ?

Correct answer: C. use a balanced strategy that promotes both agricultural and industrial development

  • A. stress agricultural development over industrial development
  • B. promote industrial development over agriculture
  • C. use a balanced strategy that promotes both agricultural and industrial development
  • D. stress the importation of agricultural products and the export of manufactured goods

Explanation

Development requires complementary growth in agriculture and industry: agriculture supplies food, employment and raw materials, while industry supports diversification and productivity. Focusing exclusively on either sector creates bottlenecks, so a balanced strategy is preferred.

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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

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