The Lawis model explains how growth gets started in a less developed economy ?
Correct answer: D. with a traditional agricultural sector and an industrial capitalist sector
- A. with an average product of labor in agriculture that is negative
- B. with a downward-sloping supply curve of labor
- C. with a marginal productivity of labor zero or negligible in industry
- D. with a traditional agricultural sector and an industrial capitalist sector
Explanation
The Lewis dual-sector model begins with a traditional subsistence agricultural sector alongside a modern industrial capitalist sector. Surplus labour can move from agriculture to industry, helping industrial growth get started.
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