Economics · Big Push Theory
The origin of Rosenstein-Rodan's 'Big-Push' theory of development is based on:
- 1The concept of comparative advantage in international trade.
- 2The notion of unlimited supply of labour in the subsistence sector.
- 3The idea of complementarity of investments and indivisibilities leading to external economies of scale.✓
- 4The concept of balanced growth advocated by Ragnar Nurkse.
Correct answer
The idea of complementarity of investments and indivisibilities leading to external economies of scale.
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