Match List I with List II:
List-I (Theory)
- (a) Critical Minimum Effort Hypothesis
- (b) Theory of Social Dualism
- (c) Low-level Equilibrium Trap
- (d) Theory of Technological Dualism
List-II (Economist)
- (i) Boeke
- (ii) Leibenstein
- (iii) Higgins
- (iv) Nelson
Show Answer & Explanation
Correct Answer: (A)
Explanation:
The correct matching of these development economics theories to their proponents is:
- (a) Critical Minimum Effort Hypothesis was given by (ii) Leibenstein.
- (b) Theory of Social Dualism was given by (i) Boeke.
- (c) Low-level Equilibrium Trap was given by (iv) Nelson.
- (d) Theory of Technological Dualism was given by (iii) Higgins.
Therefore, the correct option is (A).
📚 Additional Info: Development Economics Theories
(a) Critical Minimum Effort Hypothesis (Harvey Leibenstein)
Leibenstein’s theory suggests that underdeveloped economies are caught in a “vicious cycle of poverty.” To break this cycle, a small, gradual investment (a “push”) is not enough. The economy needs a “critical minimum effort” or a large-scale investment (a “big push”) to overcome shocks (like population growth) and achieve self-sustaining growth.
(b) Theory of Social Dualism (Julius H. Boeke)
Boeke’s theory argues that developing countries (especially in the East) have a “dualistic” society. This isn’t just an economic split, but a social and cultural one. He described a pre-capitalist, traditional, rural sector existing alongside a modern, Westernized, industrial sector. These two sectors have such different values and social systems that they cannot merge, hindering overall development.
(c) Low-level Equilibrium Trap (Richard R. Nelson)
Nelson’s theory is similar to Leibenstein’s. It states that an economy can get “trapped” in a low-income equilibrium. Any small increase in per capita income leads to a rise in population growth, which then pushes the per capita income back down to the subsistence level. To escape this trap, the rate of investment must be high enough to outpace population growth and generate a sustained increase in per capita income.
(d) Theory of Technological Dualism (Benjamin Higgins)
Higgins’ theory focuses on the “dualism in technology” and production. He argues that developing economies have a modern, industrial sector that uses capital-intensive (high-tech) methods and a traditional, rural sector that uses labor-intensive (low-tech) methods. Because the modern sector is capital-intensive, it doesn’t create enough jobs for the surplus labor in the traditional sector, leading to widespread unemployment and underemployment.