Question

Why does a large industrial sector not always indicate that a nation is fully developed?

Development depends on rate of industrialization

The standard of living may not have risen with industrial growth

Environmental standards may differ from industrial standards

Focus on industry may slow technological advancement

Answer 1

According to many analysts, deficiency of effective demand is the most fundamental economic problem. That is, modern society does not earn enough income to purchase its output. For example, geographer David Harvey claims, "Workers spending their wages is one source of effective demand, but the total wage bill is always less than the total capital in circulation (otherwise there would be no profit), so the purchase of wage goods that sustain daily life (even with a suburban lifestyle) is never sufficient for the profitable sale of the total output."

Answer 2

B. The standard of living may not have risen with industrial growth.
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