According to Lewis's model the dual economy grows only when ?
Correct answer: A. the modern sector increases its output share relative to the traditional sector
- A. the modern sector increases its output share relative to the traditional sector
- B. agricultural sector uses modern equipment
- C. agricultural sector hires labor economically
- D. modern manufacturing sector is labor intensive
Explanation
In Lewis's dual-economy model, development depends on expansion of the modern sector, which absorbs surplus labor from the traditional sector and increases its contribution to output. Agricultural modernization alone is not the model's central condition for growth.
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