economics hard Fill in the Blank

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.

  1. Lewis
  2. C2 (or Comprehensive)
  3. frictional
  4. isoquant

Answer: Lewis

W. 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.

Topic Macroeconomics - Growth Models
Exam Relevance UPSC Prelims, SSC CGL
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