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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
The following statements are true about informal sector except ?
Which one of the following countries is not a high-income country ?
Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
Which of the following statement is true about low-income countries ?
Two or more nuclear families of parent(s) and children is known as ?
Increases in real GNP per capita occur when ?