Therefore, a free market economy should be imposed as an economic model so that the resources can be allocated efficiently to each economic actor. ... A free market economy is one of the economic systems, which attempt to solve the basic economic problem with a minimum of regulation and control by governments, and the allocation of resources is determined by very unique system called the price mechanism. ... All economic actors in this system are motivated by pure self-interest where they are all aimed to maximise their own interests. Consumers: Consumers want to maximise their own economi...

• Word Count: 2544
• Approx Pages: 10

The process of economic development has been usually seen as a transformation from the rural agricultural sector to the urban manufacturing sector in developing countries. ... Arthur Lewis in his work on 'Economic development with unlimited supplies of labor' (1954) analyzed the labor market dualism and the structural difference between the subsistence sector and capitalistic sector in developing economies. ... The model, which takes to account the context of developing countries, explains a dual economy model of economic development with an assumption that there exists surplus labo...

• Word Count: 4558
• Approx Pages: 18
• Has Bibliography
• Grade Level: Undergraduate