1) Explain the following: a

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1) Explain the following:
a. The principal causes of high population growth in developing countries and the major
consequences.
b. The notion of hidden momentum of population growth
c. The theory of demographic transition.
2. Outline and comment on:
a. The arguments AGAINST the idea that population growth is a serious problem in developing
nations.
b. the arguments IN SUPPORT of the idea that population growth is a serious problem in
developing nations.
c. The various policy options available to developing countries' governments in their attempt to
modify or limit the rate of population growth.
3. Suppose that in India, a minimum wage is established in the modern sector above the market
clearing wage, while the rural traditional wage is market determined at a lower level than in the
modern sector.
a. Describe the impact of this policy on the rural labour force, urban unemployment, and the rural
wage.
b. Will the modern sector wage be equal to the traditional sector wage after markets equilibrate
through migration? Explain.
c. What effect might moving costs have on the equilibrium you described in part (b)?
d. What effect might the introduction of factories to rural areas have on the equilibrium you
described in part (b)?
e. Suppose that the rural wage is $2 per day. Urban modern sector employment can be obtained
with a probability of 0.24 and pays $4 per day. The urban informal sector pays $1 per day.
Using this information, and making assumptions as needed, predict whether there will be any
rural-to-urban or urban-to-rural migration? Explain your reasoning, stating explicitly any
simplifying assumptions, and show all your work.4. "The key to solving the serious problem of excess rural-urban migration and rising urban
unemployment and underemployment in developing countries is to restore a proper balance
between urban and rural economic and social opportunities." Discuss the reasoning behind this
statement and give a few specific examples of government policies that would promote a better
balance between urban and rural economic and social opportunities.
5. Read the article on Pathways out of Poverty and answer the following questions.
a. What is the Progresa/Oportunidades program, and what does it try to accomplish?
b. How does it try to do so - what are the key program features and innovations?
c. Why make the cash transfers conditional? What are the possible benefits as well as the
drawbacks?
d. Specifically, how does Progresa work to improve nutrition?
e. Specifically, how does Progresa work to improve education?