Which of the following economies creates a new rich class and a small, but growing, middle-class that both demand new types of imported goods?
A. Subsistence economy
B. Raw-material-exporting economy
C. Industrialized economy
D. Industrializing economy
E. None of the above.
Answer: (D) is correct. An industrializing economy needs more imports of certain products as manufacturing increases. A subsistence economy (A) offers few market opportunities and a rich class seldom exists. A raw-material exporting economy (B) gains much of their revenues from exporting one particular natural resource; therefore, their economy has either a poor class or wealthy upper class. An industrialized economy (C) has varied manufacturing activities and a large middle class. Answer (E) is incorrect because one of the above is indeed true.