Which of the Following Is an Assumption of the Lewis

question 17

Multiple Choice

Which of the following is an assumption of the Lewis two-sector model?

• A)Surplus labor in industry
• B)Positive marginal product of labor in agriculture
• C)An upward sloping labor supply curve in industry
• D) None of the above

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, listing assets, liabilities, and shareholders' equity at a specific point in time.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or during the business's usual operating period, if that period extends beyond a year.

Inventory

Goods and materials that a business holds for the purpose of resale or as part of its production process.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets on a balance sheet until they are realized.