Economics · Economic Development
According to Arthur Lewis's model, a dual economy grows sustainably only when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The modern sector increases its output and employment share relative to the traditional sector✓
- 2The modern manufacturing sector becomes highly labour intensive without capital accumulation
- 3The agriculture sector uses modern equipment without transferring surplus labour
- 4The traditional sector completely stops production immediately
Correct answer
The modern sector increases its output and employment share relative to the traditional sector
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