Arthur Lewis's theory of surplus labour was the idea that __________________.
A) there were too many labourers in developing countries and people should be encouraged to start their own businesses
B) industry in developing countries relied too heavily on "people power" and they needed to automate and mechanise
C) there was a surplus of agricultural labour and this labour needed to move to urban areas to work in industry
D) there was not enough labour, and people had to move into more vocational settings
E) raising wages would decrease the amount of surplus labour in developing nations

Question

Quizplus · Accepted Answer

Arthur Lewis's theory of surplus labour posits that in developing countries, there is a surplus of labour in the agricultural sector, which does not contribute to productivity. The theory suggests that this surplus labour should be transferred to the industrial sector, where it can be more productive, thus fostering economic development. This process involves moving labour from rural agricultural areas to urban industrial areas.

Arthur Lewis's Theory of Surplus Labour Was the Idea That