Question

A Big Push is required because:

A) The market forces are enough to lead the economy to industrialization.
B) Coordination failure doesn't need to always happen.
C) This is the only way to achieve industrialization.
D) None of the mentioned answers is correct.

Answer 1

A Big Push is necessary because market forces alone may not be sufficient to industrialize an economy, and coordinated efforts and investment are often required to overcome barriers to industrialization.

Step-by-step explanation:

A Big Push is required because market forces alone are often not enough to lead an economy to industrialization. This concept is derived from development economics, which suggests that coordination failure among investors and other economic actors can prevent industrialization. The Big Push theory posits that significant, coordinated efforts—often involving substantial investment in infrastructure and industry—are needed to achieve industrial development in a country.

Industrialization requires a combination of demand, favorable economic policies, and often the intervention of a stable government to promote growth, as seen historically in Great Britain. The theory stresses that a single investor or firm's actions may not be sufficient to overcome the barriers to industrialization, which include high initial costs and the need for complementary investments across different sectors.

Therefore, the correct answer to the student's question is:

D) None of the mentioned answers is correct.