1. 1. Explain the evolution of development measure criteria. How HDI does represent a balanced and Holistic measure of development across countries? 5+5
Or
Describe the structural change envisaged in developing countries growth process. 10
2. (A) Harrod-Domar growth model is a pioneer in development theory from Keynesian static model to dynamic growth model. Explain. 5
(B)Present a brief analysis of the process of economic expansion in a dual economy composed of a ‘Capitalist sector’ and ‘Non-capitalist’ sector. Bring out the ways through which benefits of rapid expansion of modern sector “trickled down” to bring prosperity to the traditional sector. 5
Or
(A)In Solow neo-classical growth model irrespective of initial level of capital stock per person there is tendency of convergence of capital per person (k) with steady state level of capital per person (k*). Explain. 5
(B)Diagrammatically explain the role of labour augmenting technical progress in Solow model. How technical progress does affects steady state of an economy having different level of investment rate? 5
3. (A)The divergence between social and private benefits and costs can lead to a misallocation of resources when private interests supersede social investment criteria. Explain with suitable diagram. 5
(B)The educational systems of many developing nations sometimes act to increase rather than decrease income inequalities. Comment. 5
Or
(A) Critically evaluate the different approaches to tackle child labour in developing countries. 5
(B)The educational gender gap or discrimination against women hinders economic development in addition to reinforcing social inequality. Explain. 5
4. What is technical progress? Differentiate between various classification of technical progress proposed by the work of great economists Harrod, Hicks and Solow. 2+8
Or
(A)Inflation has been a powerful stimulant to growth through the favourable effect of excess demand on profits, saving and investment. Explain. 5
(B)What are the inherent dangers of unbalanced growth model? 5
5. How does trade acts as an engine of growth? Discuss the role of export promotion and import substitution policy in the economic development of LDCs. 5+5
Or
Explain the role of foreign aid in the economic development of developing countries? The fluctuations in capital flows to developing country required a cautious FDI policy dedicated to economic development of developing nations. Comment. 5+5
6. ‘Choice of an optimum combination between capital and labour is most fundamental to the design of industrialization ’.Discuss. 10
Or
Big push strategy has been detrimental to industrial development of countries which are trapped in low equilibrium. Explain. 10
7. (A) Outline the factors which affect the ability and willingness to save. 5
(B) What do you understand by market failure? 5
Or
Financial liberalization did not give desired results in developing countries as regards to saving, investment and growth. Critically evaluate. 10
8. Write short note on any two5*2
(b) Unconditional convergence
(c) Listian Trap
(d) Endogenous vs. Exogenous variables in growth model
