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The Harris-Todaro model explains rural-to-urban migration as a rational decision based on:

AGuaranteed employment in city factories
BExpected urban-rural real wage differentials rather than actual current wages
CGovernment rural expulsion orders
DUniform wage structures

Explanation

Harris-Todaro shows rural workers migrate to cities if expected urban wage (wage rate × probability of employment) exceeds rural wage.

Submitted by: mcqstutor Team More Economics MCQs →

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