Which of the following is an assumption of the Lewis two-sector model?
A)Surplus labor in the rural sector
B)High unemployment in the urban modern sector
C)Rising real urban wages
D) Rising marginal product of labor in the rural sector

Question

Quizplus · Accepted Answer

The assumption of surplus labor in the rural sector is a key component of the Lewis two-sector model, which assumes that this surplus labor can be transferred to the urban modern sector as it develops. The other choices are not assumptions of the model.

Which of the Following Is an Assumption of the Lewis