« previous next »

Author Question: Suppose the rural wage is 1 per day. Urban modern sector employment can be obtained with 5 ... (Read 119 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?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Thyroid conditions may make getting pregnant impossible.

During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage, During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage,
A mother dies, a father loses his leg—such calamities shattered poor urban families. Orphaned street A mother dies, a father loses his leg—such calamities shattered poor urban families. Orphaned street
Ashurnasirpal II Killing Lions, from the palace complex of Ashurnasirpal II, Kalhu (modern Nimrud, ... Ashurnasirpal II Killing Lions, from the palace complex of Ashurnasirpal II, Kalhu (modern Nimrud, ...
Japan’s Urban Landscape Japan’s Urban Landscape
Birth of Modern Astronomy Birth of Modern Astronomy
Neanderthal and Modern Human Neanderthal and Modern Human
Video: Spermatogenesis Animation

For a complete list of videos, visit our video library