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.

Question

Business

Ben Andrade

4 February, 19:17

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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Answers (1)

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Tony Duncan · Answer 1

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.