May 31 Lecture 1

May 31 Lecture 1 - May 31 Lecture 1 5 questions all...

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May 31 Lecture 1 5 questions all analytical answers. Look at sample questions. Dual economies 1954 – West Indian economist Arthur Lewis wrote an article “Economic development of unlimited supplies of labor”. What can we say about that are growing and have unlimited supplies of labor. **See notes on chart 1** Critics of Lewis Model 1) Classical assumption – All profits are reinvested. It means they buy more land, more machinery and more stuff. New graph created MPL (t+1) above MPL. **Listen to 16 In the course of progress, inequality increases before it decreases. A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand. The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy. Dual economies are common in less developed countries, where one sector is geared to local needs and another to the global export market. Dual economies may exist within the same sector, for example a
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This note was uploaded on 09/21/2011 for the course ECON 499 taught by Professor Tba during the Spring '11 term at UChicago.

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May 31 Lecture 1 - May 31 Lecture 1 5 questions all...

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