What makes the Lewis model a "development" model rather than a "growth" model? What insights on development can be derived from the model?
What will be an ideal response?
The basic point here is that Lewis is addressing structural change, rather than the rate of growth, and starts with a characterization of a poor country rather than an abstract economy. The insights derive from addressing the peculiarities of subsistence and modern sectors, and the problems of transition of a population from one to the other.
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Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?
A) An additional computer can be produced only if fewer televisions are produced. B) The trade-off between computers and televisions is not constant. C) Society cannot have more of both goods at the same time. D) There are no opportunity costs involved in choosing one point on the curve over all other points.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. The introduction of satellite TV service is a form of:
A. price gouging. B. profiteering. C. market entry. D. All of these.