11 Questions
What is the main obstacle to economic growth in the Lewis model?
Scarcity of capital
What is the primary assumption of the Lewis model?
Unlimited supply of labor
What is the main characteristic of the rural subsistence sector in the Lewis model?
Low productivity and low wages
What is the primary goal of the Lewis model?
To promote economic growth and development
What is disguised unemployment, according to the Lewis model?
Underemployment in the rural subsistence sector
What is the role of the urban advanced sector in the Lewis model?
To provide employment opportunities to rural workers
What is the main limitation of the Lewis model?
It assumes unlimited supply of labor
What is the main consequence of disguised unemployment in the Lewis model?
Reduced economic growth
What is the main mechanism of skill formation in the Lewis model?
Migration from rural to urban areas
What is the main difference between the rural subsistence sector and the urban advanced sector in the Lewis model?
Level of productivity
What is the main policy implication of the Lewis model?
Increase investment in the urban sector
Test your understanding of the Lewis model, a theoretical framework for studying the growth path of labour-surplus developing economies. This quiz covers the concept of dualistic economic development, disguised unemployment, and underemployment.
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