Part 1: True/False/Explain. For each question, follow these steps. First, define or explain precisely anyterms or concepts that are underlined, with a focus on the particular context in which they are beingused. Second, state whether the statement is true or false, and explain why. Include diagrams orexamples as part of your example, if appropriate. Concise answers are preferred over wordy ones.Todaro migration modela. Write out the equation for the Todaro migration model and give the intuition behindit.b. Suppose the urban wage is $8/day, the rural wage is $6/day, and the cost of migrationaverages out to about $1/day. If rural employment is 90%, how high canunemployment be and yet still some individuals will choose to migrate to the cities?c. Now suppose all the values are the same as the above, except the urban wage is now$12/day. If rural employment is 90%, how high can unemployment be and yet stillsome individuals will choose to migrate to the cities?d. What does your answer tell you about the dynamics of unemployment over time incities in LMICS as incomes rise?e. What does it tell you about the importance of rural development?

Todaro migration model assumes 2 sectors: rural and urban, where wages in the urban sector are…

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Todaro migration model

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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