Choose the correct answer and concrete with example According to Kuznets, the identifying characteristic of "modern economic growth" is
a. expansion of heavy industry. b. a rapid decline in population growth rates. c. high rates of
saving and investment. d. application of science to problems of economic production.
The correct answer would be c. high rates of saving and investment.
According to Kuznets, "modern economic growth" is characterized by high rates of saving and investment in order to facilitate the growth and development of an economy. This means that a higher portion of income is saved and invested in order to increase productivity and expand the economy.
For example, during the Industrial Revolution in the 18th and 19th centuries, countries like Britain experienced modern economic growth through high rates of saving and investment. This was achieved through the accumulation of capital for the development of new machinery, infrastructure, and industries. The saved and invested funds were used to finance technological advancements, such as the application of steam power to production processes, leading to significant economic expansion and increased productivity.