At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?
What will be an ideal response?
Cities could be considered too small if the demand and supply of urban services are determined in a perfect market: migration indicates cities can accept new populations. Imperfect information, however, suggests that migrants continue to come even though services are insufficient to support them. (Information here is a public good to the extent that overpopulated cities suffer considerable negative externalities.)
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Resale price maintenance
A) requires a retailer to sell a good no lower than the specified price. B) is illegal. C) is the price of a maintenance contract on a good, such as an extended service contract on a car. D) has a net negative impact on competition.
A copyright gives the owner all of the following exclusive rights except which one?
A) distribution rights B) adaptation rights C) public performance rights D) trade secret rights
Assume that the budget constraint in the figure below is: P E E + P A A = I, where I is total income and P E is the price of education and P A is the price of all other goods. If U(E,A) = A + E, P E = 2, P A = 1, and I = 10. What is the quantity of education and all other goods consumed?
Between 1992 and 2012, the percentage of college students receiving federally-funded grants
A. increased from 58% to 73%. B. decreased from 73% to 58%. C. increased from 8% to 13%. D. slowly increased to around 47%.