The Supply Curve of Labor to Industry in the Lewis

question 2

Multiple Choice

The supply curve of labor to industry in the Lewis model is horizontal if there is surplus labor in agriculture.This condition persists as long as

• A)the marginal product of labor is less than the average product of labor in agriculture.
• B)the marginal product of labor in agriculture is less than the marginal product of labor in industry.
• C)there are diminishing returns to labor in agriculture.
• D)the marginal product of labor in agriculture is zero.

---

Definitions:

Foreign Competition

Foreign Competition involves businesses from different countries competing for market share, often leading to innovation and improved quality of goods and services.

Declining Importance

A situation or trend where a particular factor, issue, or economic sector becomes less significant or influential over time.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that outlaws monopolistic business practices, aiming to preserve fair competition in the marketplace.

FTC

The Federal Trade Commission, a U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.