FAU ECS 3013 – Define economic development

FAU ECS 3013 – Define economic development

Subject: Economics    / General Economics
Question
ECS 3013 List of Questions for Test 1.
(For all theories you should know, main assumptions, basic structure, major conclusions,
policy recommendations and criticisms)
1.
Define economic development.
2. What are the limitations of using GNI growth as a measure of development?
3. What is PPP GNI? Does it improve on traditional methods of income comparison
across countries?
4. What are the main characteristics of developing countries? (Know the relationships
between income and literacy, health, poverty etc)
5. What are the five stages of economic development according to Rostow? Describe
each briefly.
6.
What are the determinants of growth according to the Harrod-Domar model?
7.
What are the determinants of growth according to the Neo-classical (Solow)
model of economic growth? What effect do population growth, new technology
and higher savings have on income growth? What are the criticisms of this
approach?
8.
Why does the neoclassical model predict income convergence between rich and
poor countries?
9.
Describe and critically evaluate Arthur Lewis’ theory of growth with surplus
labor.
10.
Discuss the importance of spillovers and complementary capital in the Romer
model.
11.
Briefly describe Kremer’s O ring model. Discuss whether it predicts income
convergence or divergence.
12.
Discuss why underdevelopment may be persistent. What can be done if
underdevelopment is a low-income equilibrium trap?
13.
Discuss what role geography and institutions play in explaining differences in the
wealth of nations. (Know why geography might influence growth, what are good
institutions etc)
Be sure you know how to interpret basic data and minimal calculations like per capita
anything, growth rates, H-D equation of growth, etc