« previous next »

Author Question: Suppose the rural wage is 1 per day. Urban modern sector employment can be obtained with 5 ... (Read 127 times)

notis

  • Hero Member
  • *****
  • Posts: 596
on: Jun 30, 2018
Suppose the rural wage is 1 per day. Urban modern sector employment can be obtained with 5 probability and pays 2 per day.
 
  Will there be any rural-urban migration? Explain your reasoning, stating explicitly any simplifying assumptions, and show all work.

Question 2

The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by
 
  a. GNI price deflator.
  b. Human Development Index ranking.
  c. purchasing power parity.
  d. the exchange rate.


CourtneyCNorton

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 30, 2018
Answer to Question 1

In this case the expected urban wage is equal to the rural wage. Only an individual who is risk loving will migrate.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

The skeletal system of a modern horse The skeletal system of a modern horse
Urban Environmental Challenges Urban Environmental Challenges
Urban Historic Preservation Urban Historic Preservation
Modern commercial fishing is highly efficient Modern commercial fishing is highly efficient
People in poor, urban areas often find themselves in “food deserts" People in poor, urban areas often find themselves in “food deserts"
What type of online info about a job candidate should employment mgmt consider when screening What type of online info about a job candidate should employment mgmt consider when screening
Video: baroreceptors

For a complete list of videos, visit our video library