HAMLINE UNIVERSITY ECONOMICS 3730 (ECON3730)

HAMLINE UNIVERSITY ECONOMICS 3730 ECON Exam 2 QUESTIONS WITH ANSWERS. 1. 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. 2. What are the characteristics of those who migrate to urban areas? What positive and negative effects do their leaving have on those who remain? 3. Explain wh...