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True or false or uncertain? In the dual economy Lewis model, the phase of disguised unemployment...

True or false or uncertain?

In the dual economy Lewis model, the phase of disguised unemployment in agriculture is associated with a horizontal supply curve of industrial labor.

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Answer #1

FALSE

Dual economy Lewis Model refers to the model for growth of developing economy when there is a transition of labour between two sectors, i.e., capitalist and subsistence sector.

Disguised unemployement means hidden unemployement in agriculture when more number of people are engaged in same work which requires lesser number of people. SO there is a hidden unemployment.

Horizontal supply curve of industrial labour is seen in case of perfect competition so it is not related to disguised unemployement in agriculture.

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