What was the question Sir Arthur Lewis kept coming back to since his time growing up in St. Lucia regarding labor and wages?
Describe and define opportunity costs (go back to the book). Provide an example of the opportunity costs for providing labor.
Describe and define “derived demand for labor”.
As an economist, Sr Lewis created models to outline the problems that caused low wages. What did his models suggest causes wages to be low and how do the opportunity costs of labor in developing nations impact wages? Pay attention to how available opportunities for employment impact wages.
Explain the graphs created below. You will always describe and explain the important points of any tables or graphs you place in your papers.
Under what circumstances did his models predict wages would increase for these workers?
which of the two events is more influential when wages begin to rise? Explain this in your paper when talking about the graphs. This is how you model what Sir Lewis was describing.
