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If the wage rate in the agriculture sector is lower than the manufacturing sector, then labor will migrate to the manufacturing sector. this will cause:________

Respuesta :

If the wage rate in the agriculture sector is lower than in the manufacturing sector, then labor will relocate to the manufacturing sector. this will drive both wages and the marginal product of labor in the manufacturing sector to decrease.

Why are pay low in the agricultural sector?

The wages are low in the agricultural sector due to work productivity cannot rise in the agricultural sector as the marginal productivity of land goes on declining. Therefore wages stay low resulting in poverty.

Why do you think agricultural laborers are forced to take low salaries?

They are pushed to labor by their landlord. They can be replaced by any other labor, ready for less pay. They don't have a stable source of earnings.

To learn more about the agricultural sector visit the link

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