03 Jul Economic
Remember that length is somewhat flexible. When I read an essay that is longer than the recommended length I tend to get grouchy unless you are saying something interesting. When I read an essay that is shorter than the recommended length I am inclined to look for what you left out.
While I do not assign a grade based on grammar, spelling or punctuation, some writing errors will lead to a lower grade. For example, a poorly structured essay with poorly constructed sentences and/or a lack of paragraphs will receive a lower grade regardless of the content. Your grade on this assignment is based primarily on how well and accurately you convey the primary points.
You may note the absence of a question about neo-liberalism on this exam. You should expect some question related to neo-liberalism on the next exam.
After Spring Break I will discuss with the class what modifications we should make to the syllabus.
Part I: Both Questions Required: approximately 500-750 words per question and each question is worth 25% of the total exam score.
1. What is the meaning of development in your own way? What is economic growth and how does it relate to structural change. Is it possible to have growth without development or development without growth? Explain. How and why did the concern with development arise and which countries were deemed to be in need of development?
2. Given the basic equation of macroeconomics: GDP=Y=C+I+G+X-M. Define savings and explain its relationship to Investment Spending. Why would Savings and Investment be central to any theory of long run growth and development? What specific challenges would this present to developing countries and what strategies might a developing country undertake to overcome this challenge?
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