Student’s Regn. No. | X x]o] 1] ST. XAVIER'S UNIVERSITY, KOLKATA ODD SEMESTER EXAMINATIONS 2022 - 23, Nov - Dec, 2022 COURSE : B.A.(H)in Economics PAPER CODE :BNHRCCS520T FULL MARKS PAPER TITLE : Development Economics D.O.E. : 06.12.2022 [TUESDAY] TIME: 10:00AM-01:00PM Instructions : Use fountain pen or ball-point pen of blue or black ink only. * Answer in your own words as far as practicable. Do not write anything on the Question paper other than your Regn. No. in the slot provided on the top of this pag | DO NOT ATTEMPT EXTRA QUESTIONS a Section Answer any 8 questions : [8x2] 1, What are the components of Human Development Index (HDI)? 2. State different stages of development in Rostow’s terminology. 3. Explain the significance of calorie elasticity of income. 4. What is poverty targeting in different public policies? 5. Whatis Lorenz criteria? 6. Suppose a country saves 30% of its income and has a capital output ratio of 5. Using the Harrod-Domar model, calculate the rate of growth of output. 7. Explain what happens to growth rate of per-capita income if the savings ratio is increased under the assumptions of Solow Model without technical progress. 8 Whatis conditional convergence? 2 Explain the concept of surplus labour. Section II Answer any 4 questions : [4x8] 10. ‘Growth is necessary but not sufficient for development’ Explain with suitable examples. [8] 11. What is the Lorenz Criteria? How would you compare income inequality of different situations when the respective Lorenz curve cross each other? 12. What is mobility matrix? Using a suitable example, illustrate the concept of perfect mobility. Can mobility matrix reflect the aspect of development? Explain. 13. Discuss with reasons whether the following statements are true or false. a) _ According to the Harrod-Domar model, ifthe capital-output ratio ofa country is low, that country will grow slower. (1) LAM 114, b) In the dual economy model, the phase of disguised unemployment must be associated with a horizontal supply curve of industrial labour, [444] In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a ‘Keynesian’ policy of creating new urban jobs through public investment, By many accounts, the size of the informal sector in Kenya went up instead of dropping in the months that followed. Given an economic explanation of this phenomenon, using the Harris-Todaro model [8] Section I Answer any 2 questions : [2x16] 16. 7s Whats the Kuznets Curve? What were the reasons provided by Simon Kuznets to explain the inverse relationship between growth and inequality? Explain in this regard Piketty’s version on the inverted U-shaped curve, [4+6+6] Suppose there are two sectors in an economy—Old and New. In the Old sector, the rate of return is constant, while in the New sector the rate of return is given by the equation r = r(n),r' > 0, where r is the rate of return and n is the proportion of population in the New sector. a) Show that this situation 5) Show that the equilibrium to which the economy finally settles to will depend on history. © Now suppose everyone in the Old sector expects everyone else to shift to the New sector irrespective of initial conditions. Is the new equilibrium*in this case independent of history? characterized by multiple equilibria. d) However, let us now assume that there is a training cost to move to the New sector. In this situation, do you think that all migrate to the New sector immediately given that everyone else is expected to do so? [4x4] Explain with diagrams how the Lewisian turning pointis reached. Explain the relationship between this process and the concept of agricultural surplus. Show that the Lewisian transformation might end before the turning point as a result of an adverse movement of the terms of trade against industry. [8+2+6] (2)