In the North-South model, how are “basic factors” distinguished from “advanced
factors,” and what are the implications for growth and development possibilities?
Answer:
Discuss some of the factors that lead infant manufactured goods industries to become
more efficient over time, and some of the factors that might lead them to fail to do so.
Answer:
In the Harrod-Domar growth model, if 12.5% of income is saved, the incremental
capital output ratio is 2.5 and the rate of depreciation is 4%, what is the implied rate of
growth?
Answer:
How can joint liability lower the interest rate for micro borrowers.
Answer:
India is expected to surpass the population of China in the next decade or so? What
differences between these two nations could have contributed to this outcome?
Answer:
A country simultaneously raises tariffs on manufactured goods and overvalues the
exchange rate. Why might these seemingly contradictory policies be pursued together?
Answer:
Does it follow from the false-paradigm model that World Bank economists are
intentionally trying to keep developing countries from realizing genuine development?
Why or why not?
Answer:
Why must projects be appraised? What do we learn from project appraisals?
Answer:
Evaluate critically the following statement: In light of the experience of the last two
decades, free trade is the best trade policy for most developing countries.
Answer:
Dependency theory characterizes countries as being either in the center or on the
periphery. Explain these two concepts. If this theory is correct, what are the
implications for development strategy?
Answer:
Do you think it is in the material interests of high-income countries to help low-income
countries improve their economic performance? Why or why not?
Answer:
What are the main differences between the linear stages and international dependency
models of development?
Answer:
What is meant by petrodollar recycling? Explain the mechanism by which this
phenomenon occurred. What were the consequences of this phenomenon for developing
countries?
Answer:
Assume a closed economy. Suppose the incremental capital-output ratio is 3, and the
depreciation rate is 4%. Using the Harrod-Domar growth equation, if the savings rate is
9%, what will be the rate of growth? What would the savings rate have to be to achieve
5% growth?
Answer:
Provide a concise statement about the relationship between population growth and
absolute poverty, female wages, rural-urban migration, availability of pensions,
availability of healthcare, availability of education, and rate of investment.
Answer: