Economics • Economic BasicsMedium
In the context of Haryana's macroeconomics, how does the phenomenon of rural-to-urban migration toward Faridabad and Gurugram impact the dualistic nature of the state labor market?
A. It intensifies wage differentials between the formal high-skill urban service sector and the informal agrarian workforce✓ Correct Answer
B. It completely eliminates structural unemployment across all districts within a single fiscal year
C. It equalizes productivity levels across manufacturing and subsistence farming without friction
D. It forces the tertiary sector to contract while expanding the primary agricultural workforce
💡 Solution & Explanation
Rapid urbanization around industrial centers like Faridabad and Gurugram draws surplus rural labor, creating a dual economy where high-productivity corporate sectors coexist with low-productivity informal urban jobs and agrarian underemployment. This labor movement alters demographic dependency ratios and strains municipal infrastructure in major urban agglomerations. Dualism in developing regional economies highlights the persistence of traditional low-tech sectors alongside advanced modern industries.
More Economics Economic Basics questions
- Examine the implications of Say's Law of Markets in classical economic theory. Which of the following…
- What is the primary implication of 'Baumol-Tobin Model' of cash management?
- What does the 'Liquidity Trap' situation imply according to Keynesian economics?
- Which economic principle states that 'money supply growth that exceeds output growth leads to inflation in…
- What does the 'Phillips Curve' traditionally illustrate in macroeconomic analysis?