Structural Shifts in Developing Economies

Steps:

• Identify key features of economic development: transition from agriculture (primary) to manufacturing/services (secondary/tertiary), demographic changes, and labor market adjustments.
• Evaluate each option against standard development models like Rostow's stages or demographic transition theory.
• Rule out options contradicting growth patterns, such as sector declines or reversals.
• Select the option aligning with common transitional challenges, like labor reallocation.

Why B is correct:

• In development models (e.g., Lewis dual-sector model), unemployment rises due to structural shifts as rural workers migrate to urban areas, creating frictional and structural unemployment before full absorption.

Why the others are wrong:

• A: Birth rates fall gradually in later development stages, not rapidly early on.
• C: Secondary sector expands with industrialization, not fails.
• D: Secondary sector grows to surpass primary, not vice versa.

Final answer: B