The linear stages theory of economic growth fails to recognize that increased investment is
(a) both a necessary and a sufficient condition.
(b) a necessary but not a sufficient condition.
(c) a sufficient but not a necessary condition.
(d) neither a

Answer: (b) a necessary but not a sufficient condition. The linear stages theory of economic growth recognizes that increased investment is a necessary condition for economic growth to take place. However, increased investment alone is not enough to ensure economic growth; other conditions, such as appropriate government policies and a supportive environment for innovation and entrepreneurship, also need to be present for economic growth to be realized. Therefore, increased investment is a necessary but not a sufficient condition for economic growth.