C an assumption of the lewis growth model is that

This preview shows page 4 - 5 out of 6 pages.

c. An assumption of the Lewis growth model is that modern sector profits are reinvested in sophisticated labour-saving capital equipment.
5. (25 marks) a. Explain what is meant by a coordination failure.
b. Using the “S-shaped” model discussed in class, explain why the privately rational decision function has an S-shape.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture