Lewis Model Flashcards
1
Q
define ‘dualism’
A
coexistence of ‘traditional’ and ‘modern’
2
Q
traditional sector equated to…
A
- agri sector
- use of older techniques of production that are labour intensive and employ single instruments
- traditional forms of economic organisation based on family
3
Q
modern sector equated to…
A
- industrial sector
- use of new technology which is capital intensive
- production organised on capitalist principles
4
Q
when may the movement of labour from agri to industry be central?
A
when there is high population pressure so there are large numbers of people per acre of arable land
5
Q
why would MP of labour be close to 0
A
entrepreneur hires labour only to point where MP equals wage
6
Q
zero marginal product activity characterised by…
A
payment system that is not based on marginal product
