What are the main features of the Harris-Todaro model of rural-urban migration?
What will be an ideal response?
Rational economic decision based on costs/benefits. The reward to migration is expected rather than actual urban income. The probability of obtaining an urban job depends on urban employment rates. High rates of urban unemployment are inevitable.
You might also like to view...
Consider the two graphs above. Suppose that technological progress is expected to reduce the future cost of capital goods. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
When decision rights are decentralized, typically
a. decisions are being moved to those with more of the relevant information b. decisions are being moved to those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
The number of standard deviations z that a particular value of r is from the mean ? can be computed as z = (r - ?)/ ?. Suppose that you work as a commission-only insurance agent earning $1,000 per week on average. Suppose that your standard deviation of weekly earnings is $500 . What is the probability that you earn zero in a week? Use the following brief z-table to help with this problem. Z
value Probability -3 .0013 -2 .0228 -1 .1587 0 .5000 a. 1.3% chance of earning nothing in a week b. 2.28% chance of earning nothing in a week c. 15.87% chance of earning nothing in a week d. 50% chance of earning nothing in a week e. none of the above
Risk pooling occurs when:
A. people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. B. people organize themselves in groups according to how risk-averse they are. C. people organize themselves in groups according to recognizable characteristics. D. companies organize individuals into groups according to how risk-averse they are.