In most less developed countries, the initial target of import substitution is to promote domestic production of
(a) consumer goods.
(b) food and other agricultural goods.
(c) capital goods.
(d) manufactured intermediate goods.
Question 2
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.
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