MEC-004 Solved Assignment 2018-19
MEC-004: ECONOMICS OF GROWTH AND DEVELOPMENT
Course Code: MEC-004
Assignment Code: MEC-004/AST/2018-19
Maximum Marks: 100
Note: Answer all the questions. While questions in Section A carry 20 marks each (to be
answered in about 700 words each) those in Section B carry 12 marks each (to be answered
in about 500 words each). In the case of numerical questions word limits do not apply.
1. Examine the effect of population growth in the Solow model of economic growth. Discuss
how the Solow model could be used to explain poverty traps in developing nations.
2. 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.
3. Distinguish between economic growth and development. Briefly mention the main benefits
that economic growth confers upon society.
4. Describe Pasinetti’s theory of economic growth and distribution.
5. Describe the various approaches to the measurement of total factor productivity.
6. What are the main propositions of the Real Business Cycle model? Describe the basic
structure of a prototype Real Business Cycle model.
7. Compare and contrast the Uzawa two-sector growth model with the Feldman model.