Section A

1) Discuss the main sources of economic growth. Discuss the main adverse repercussions on the economy that the process of economic growth can have.

2) What do you understand by technical progress? What is the relationship between technical progress and growth of total factor productivity? Discuss the various conceptions of neutral technical progress as put forward by Hicks, Harrod and Solow.

Section B

3) Describe the Mankiw-Romer-Weil extension to the neoclassical model to include human capital. Explain why diminishing returns to capital do not take place in the AK model.

4) What are the main propositions of the Real Business Cycle model? Describe the basic structure of a prototype Real Business Cycle model.

5) Compare and contrast Adam Smith’s theory of development with that of Ricardo’s.

6) Discuss the Harris-Todaro model of migration. What has been the impact of this model? What is its relevance for developing nations?

7) Explain the meaning of cost-benefit analysis. Describe briefly the usual steps taken in a typical cost-benefit exercise.