Economics · Theories of Economic Growth
Given below are two statements: Assertion (A): Paul Rosenstein-Rodan's 'Big Push' theory argues that a large minimum scale of investment is required to break the poverty trap in underdeveloped economies. Reason (R): Small isolated investments fail to overcome market failures and indivisibilities; only a coordinated, large-scale, simultaneous investment across sectors can trigger self-sustaining growth. Choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are true, but R is NOT the correct explanation of A
- 2Both A and R are true, and R is the correct explanation of A✓
- 3A is true but R is false
- 4A is false but R is true
Correct answer
Both A and R are true, and R is the correct explanation of A
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