below are fifteen concepts 1 15 and fifteen definitions a o match each definition to its concept by writing the correct letter in the left hand margin
Below are fifteen concepts, 1-15, and fifteen definitions, A-O. Match each definition to its concept by writing the correct letter in the left-hand margin.
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____ 1. Urban bias
____ 2. Rural-urban migration
____ 3. Agglomeration economies
____ 4. Urbanization economics
____ 5. Localization economies
____ 6. Social capital
____ 7. Congestion
____ 8. Informal sector
____ 9. Todaro migration model
____ 10. Harris-Todaro model
____ 11. Present value
____ 12. Labor turnover
____ 13. Efficiency wage
____ 14. Induced migration
____ 15. Wage subsidy
A The notion that modern-sector urban employers pay a higher wage than the equilibrium wage rate in order to attract and retain a higher-quality workforce or to obtain higher productivity on the job.
B The part of the urban economy of developing countries characterized by small competitive individual or family firms, petty retail trade and services, labor-intensive methods, free entry, and market-determined factor and product prices.
C A government financial incentive to private employers to hire more workers, as through tax deductions for new job creation.
D A theory that explains rural-urban migration as an economically rational process despite high urban unemployment. Migrants calculate (present value of) urban expected income (or its equivalent) and move if this exceeds average rural income.
E The discounted value at the present time of a sum of money to be received in the future.
F An equilibrium version of the Todaro migration model that predicts that expected incomes will be equated across rural and urban sectors when taking into account informal sector activities and outright unemployment.
G The movement of people from rural villages, towns, and farms to urban centers (cities) in search of jobs.
H Worker separations from employers, a concept used in theory that the urban-rural wage gap is partly explained by the fact that urban modern-sector employers pay higher wages to reduce labor turnover rates and retain trained and skilled workers.
I Process in which the creation of urban jobs raises expected incomes and induces more people to migrate from rural areas.
J The notion that most governments in developing countries favor the urban sector in their development policies, thereby creating a widening gap between the urban and rural economies.
K Cost advantages to producers and consumers from location in cities and towns, which take the forms of urbanization economies and localization economies.
L An action taken by one agent that decreases the incentives for other agents to take similar actions. Compare to the opposite effect of a complementarity.
M The productive value of a set of social institutions and norms, including group trust, expected cooperative behaviors with predictable punishments for deviations, and a shared history of successful collective action, that raises expectations for participation in future cooperative behavior.
N Agglomeration effects associated with the general growth of a concentrated geographic region.
O Agglomeration effects captured by particular sectors of the economy, such as finance or autos, as they grow within an area.
