Practice mode Characteristics and Institutions of Developing Countries

According to Lewis’s model, when does a dual economy grow?

Correct answer B. The modern sector increases its output share relative to the traditional sector

Explanation

In the Lewis model, growth occurs as the modern capitalist sector expands by drawing surplus labour from traditional agriculture, so the modern sector's share of output rises.

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According to Lewis’s model, when does a dual economy grow?

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According to Lewis’s model, when does a dual economy grow?

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