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20 April, 08:27

According to the Lewis two-sector model the creation of a Modern (urban) Sector will:

A. Create a flow of labor from the modern sector into the traditional (rural) sector.

B. Create a flow of labor from the traditional sector into the modern sector.

C. Create a flow of wages towards the traditional sector and generating demand for food.

D. destroy completely the traditional sector.

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  1. 20 April, 08:40
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    The answer is option B) According to the Lewis two-sector model the creation of a Modern (urban) Sector will:

    Create a flow of labor from the traditional sector into the modern sector.

    Explanation:

    The two sector model propounded by W. Arthur Lewis is a theory of development that identifies two sectors: the traditional and modern sector.

    According to this theory, the creation of a modern sector will generate a flow of excess labor from the traditional sector to the urban sector where there is more demand for labor.

    Over time, this migration will create more jobs, stimulate industrialization and a framework for sustainable development.
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