Lewis Dual-Sector Model of Development Quiz

Who developed the Lewis Dual-Sector Model of Development?

• John Maynard Keynes

• Milton Friedman

• Arthur Lewis

• Adam Smith

What is the main focus of the Lewis Dual-Sector Model of Development?

• The process of economic development in developed countries

• The transformation of traditional agrarian economies into modern industrial economies

• The stabilization of financial markets

• The development of technology in the service sector

In which decade was the Lewis Model introduced?

• 1940s

• 1950s

• 1960s

• 1970s

What accolade was awarded to Arthur Lewis for his work in economics?

• Pulitzer Prize

• Nobel Prize in Literature

• Nobel laureate in economics

• Fields Medal

According to the Lewis Dual-Sector Model, what does the rural sector typically consist of?

• A small labor force engaged in high-productivity services

• A large labor force engaged in low-productivity, subsistence farming

• A large labor force engaged in high-technology industries

• A small labor force engaged in modern industry and services

What is assumed about the labor supply in the rural sector in the Lewis Dual-Sector Model?

• It is limited and cannot be transferred to other sectors

• It is unlimited and can be transferred to the industrial sector without reducing agricultural output

• It is skilled and demands high wages

• It is insufficient and leads to high wages in the rural sector

What is assumed about wage rates in the rural sector according to the Lewis Dual-Sector Model?

• Wages are high due to the scarcity of labor

• Wages fluctuate based on the agricultural output

• Wages are fixed and remain stagnant due to the large labor surplus

• Wages are determined by the industrial sector's demand for labor

Why is the industrial sector expected to generate profits in the Lewis Dual-Sector Model?

• Because it relies on subsistence farming

• Because it has a limited supply of labor

• Because it is less productive and labor-intensive

• Because it is more productive and capital-intensive

What characterizes the rural sector during the initial stage of the Lewis Development Model?

• High industrialization and high wages

• Subsistence farming and a small labour force

• Subsistence farming and a large labour force

• Advanced technology and urbanization

What is the main reason for the movement of labour from the agricultural sector to the industrial sector in the Lewis Development Model?

• Lower wages in the industrial sector

• Higher productivity and the pursuit of higher wages in the industrial sector

• Decreased demand for labour in the agricultural sector

• Government policies forcing labour transfer