What structural characteristic differentiates a dual economy from alternative economic systems?
Show answer Hide answer
Answer: B. a traditional agricultural sector and a modern industrial sector
Explanation
A dual economy is characterized by the coexistence of a traditional agricultural sector and a modern industrial sector within the same country. Developing nations often exhibit stark productivity gaps between rural farming and urban manufacturing. Economic development theories study how labor transitions from traditional agriculture to modern industry. W. Arthur Lewis pioneered the dual-sector model to explain labor migration in developing economies. Traditional sectors feature labor surplus and low productivity, whereas modern sectors use advanced capital. Dualism highlights structural inequalities persisting within developing national economic systems.
Developing countries implement industrialization policies to bridge the productivity gap in dual economies. Rural-to-urban migration fuels the growth of modern industrial centers in developing nations. Economic planners target agricultural modernization to alleviate poverty in traditional dual sectors. An industrial sector and a manufacturing sector represent similar modern economic activities. State ownership of means of production defines command economies rather than dual economic structures. Industrial sectors concentrating on manufacturing describe standard modern economic specialization.
Related questions
Q1. Inventory is defined as a comprehensive itemized record of goods held, the procedure for compiling such records, or the stock itself. Which of the following likewise constitutes inventory?
Show answer Hide answer
Answer: D. An evaluation or a survey, as of abilities or resources
Inventory can refer broadly to an itemized record, stock list, or an evaluation survey of resources and abilities. The term extends beyond physical merchandise to include comprehensive records and systematic resource ass...
Q2. What is the consequence of a decline in the market demand for fish?
Show answer Hide answer
Answer: C. decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
Decreased demand for fish lowers the value of the marginal product of fishermen, reducing wages and employment.
Q3. Under what conditions will a decrease in supply (a leftward shift) boost overall revenue within that market?
Show answer Hide answer
Answer: A. demand is price inelastic
When demand is price inelastic, a leftward shift in supply increases total revenue because price rises proportionally more than quantity falls. Inelastic demand means consumers continue buying despite higher prices, boos...
Q4. What factors can trigger a contraction in investment demand?
Show answer Hide answer
Answer: D. All of the above
Investment demand contracts when borrowing costs rise, expected future profits decline, or capital goods become more expensive. Higher interest rates make financing capital projects prohibitively costly for businesses. P...
Q5. When will a currency depreciation of the dollar exert its most significant influence on import volumes?
Show answer Hide answer
Answer: C. elastic
Elastic demand means consumers are very sensitive to price changes. Currency depreciation makes imported goods more expensive for domestic buyers. Elasticity causes buyers to significantly reduce their import consumption...
Q6. What market reaction follows a drop in price?
Show answer Hide answer
Answer: C. May be caused by a fall in demand
A drop in market price can be caused by a decrease in consumer demand, which shifts the demand curve inward and lowers equilibrium price and quantity. Lower consumer willingness to buy forces sellers to reduce prices to...