Deepak Lal maintains that development economics is dominated by _______ perspective that supports state intervention in LDC pricing?
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Answer: A. dirigiste
Explanation
Deepak Lal used dirigiste to describe state-dominated development economics. Dirigiste economic perspectives advocate for heavy government intervention in pricing. State planning models historically controlled resource allocation in developing countries. Dirigisme originated in France to denote government-directed economic planning. Critics argue that state price controls create severe market distortions. Neoliberal economists challenge dirigiste policies in favor of free markets.
Development policy debates often center on state intervention versus free markets. Many developing nations moved away from dirigiste models toward market reforms. Understanding economic literature requires familiarity with terms like dirigiste. Option B refers to demand-side macroeconomic management rather than state price control. Option C denotes government control of key heavy industries rather than pricing. Option D describes corporate financial leniency rather than state intervention.
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