The spiral of economic growth and advantage that emerges as external economies,agglomeration and localization economies develop in a place is called
A) cumulative causation.
B) creative destruction.
C) neo-Fordism.
D) flexible production.
E) Reaganomics.

Question

Quizplus · Accepted Answer

The spiral of economic growth and advantage that emerges as external economies, agglomeration and localization economies develop in a place is known as cumulative causation, which refers to the process whereby initial advantages in a particular place lead to further advantages that promote economic growth and development. This term was introduced by economist Gunnar Myrdal in the 1950s.

The Spiral of Economic Growth and Advantage That Emerges as External