Economic Development Shifts Sectors from Agriculture to Industry and Services

Steps:

• Recall that economic development involves structural transformation, reducing reliance on primary sectors like subsistence farming.
• Analyze each option for alignment with typical development patterns: rising incomes, industrialization, and service growth.
• Identify the option showing reverse trends, indicating it's unlikely.
• Confirm via standard models like Lewis dual-sector, where agriculture declines as GDP share.

Why C is correct:

• Development theory (e.g., Lewis model) predicts a decline in subsistence farming's GDP share as labor shifts to higher-productivity sectors, while financial services expand with urbanization and capital accumulation.

Why the others are wrong:

• A: Rising incomes and falling unemployment are standard outcomes of growth and modernization.
• B: Manufacturing rises during industrialization, and financial services grow in mature economies.
• D: Tourism expands as infrastructure improves, while agricultural exports decline with diversification.

Final answer: C