Answer all questions with one-two paragraphs.
1. Compare and contrast W.W. Rostow's theory and the Harrod-Domar model.
2. What is the Multidimensional Poverty Index and how is it a more improved measure of poverty?
3. Explain why Lorenz curves and Gini coefficients fail to measure the absolute poverty? When making policy decisions, why it is important to look at what is or is not happening to relative income and absolute poverty?
4. Suppose that a developing country devotes extensive resources towards improving the education and skill level of the labor force. How might this help the country avoid a coordination failure? Is this strategy likely to be successful? Why or why not?
5. Why might the use of more advanced technology not be a sufficient condition for sustained economic growth?
6. Elaborate on the growth versus economic welfare debate is related to the dilemma of how to provide basic human needs without sacrificing growth.
7. Critically analyze the Kuznets inverted-U hypothesis
8. Do you think becoming more economically developed is equivalent to becoming more industrialized? Discuss the difference between necessary and sufficient conditions, and introduce the concept of modern economic growth and the structural changes that go along with development.
Course textbook: Economic Development, By Michael P. Todaro& Stephen C. Smith.