The Traditional Methodology is based on:
(a) 1 unit of output is produced using 1 worker; Qt = Lt
(b) Marginal product of labor (MPL) in the traditional sector is 1 (lower than in the modern)
(c) Both are true.
(d) None is true.
Answer: C
The Traditional Methodology is based on:
(a) 1 unit of output is produced using 1 worker; Qt = Lt
(b) Marginal product of labor (MPL) in the traditional sector is 1 (lower than in the modern)
(c) Both are true.
(d) None is true.
Answer: C