Ojonugwa Julius Akubo's Blog

This,is an economic system or theory that Was postulated by a political economics professor Leon walras .the system basically seeks to explain the economy based on the general equilibrium theory and marginal utility. The system is to encompass the whole field of value and price in a much more comprehensive manner than had been presented by any previous economist . He assumed perfect competition and uniformity of price throughout the given market and mathematically demonstrated that general equilibrium in such a market requires certain conditions to be satisfied listed thus: Each individual will have a utility curve for each good and service offered in the market The individual will maximise his utility through exchange and That he will obtain the greatest possible satisfaction when the prices paid in the exchange are proportional to the marginal utility of the good purchased. In general he said that the basic laws which are at work bring about the equilibrium in the market. The

Caribbean was born in 1915 in the island of West Indies. He finished high school at 14 and entered London school of Economics in 1932 as the first black man. He graduated with first class and had his PHD in industrial economics. He is a great writer but we shall be focusing on his contribution to development economics. Arthur Lewis was the brain behind the famous structural model that won him the Nobel Prize in Economics. As a matter of fact he is the only black man who has won the Nobel price. He is regarded as the father of development economics. His model was based on his paper “development with unlimited supply of labour” in 1964. He said an economy can be divided into two sectors; Modern sector or industrial sector Traditional sector or agricultural  sector The model is built based on the following assumptions Developing sector can be divided into the sectors above Traditional sector has surplus labour supply whose marginal productivity is zero(MP=0) The modern sector depe