The ___ model of economic development describes the transition of an economy from a traditional, agrarian sector with surplus labor to a modern, industrial capitalist sector.
- Lewis
- C2 (or Comprehensive)
- frictional
- isoquant
Answer: Lewis
- Arthur Lewis proposed the dual-sector model, explaining how developing economies can grow by transferring 'surplus' or disguisedly unemployed labor from the subsistence agricultural sector to the higher-productivity industrial sector, keeping wages low and profits high for reinvestment.