Dualism and Wage Differentials in Economics: Understanding Urban and Rural Sectors, Quizzes of International Economic Relations

Download Dualism and Wage Differentials in Economics: Understanding Urban and Rural Sectors and more Quizzes International Economic Relations in PDF only on Docsity! TERM 1 Dualism DEFINITION 1 Economy having 2 sectors characterized by MODERN & TRADITIONAL factors Modern: urban, manufacturing (M), K-intensive relatively, High L productivity Traditional: rural, agricultural (A), L-intensive relatively, Low L productivity *co-existence of rural & urban lifestyle TERM 2 Urban DEFINITION 2 PmMPLm greater than that of agricultural wage rate manufacturing High w rate Unemployment TERM 3 Rural DEFINITION 3 ~w agricultural PaMPLa low w rate underemployment TERM 4 * Symptoms of wage Differentials DEFINITION 4 wage differentials ---cause of----> symptoms[in reality there could be something else affecting wage differentials] TERM 5 **Inefficiency in Production DEFINITION 5 *wage differential argument Inefficiency b/c DWL @ L of intersection even w/o Ue there is inefficiency in sys