Due Date: October 21st, 2012 IN CLASS
PROBLEM SET NO. 1
Part A: Short Essays:
Please answer the following questions. An answer need not be more than a few paragraphs,
as long as the terms are well defined and a
What is Economic Development?
Economics: the study of how individuals,
households, firms and governments make
decisions about consumption, production and
allocation in a world of scarcity.
Neoclassical economics deals with capitalist
world with perfect
Poverty and Inequality
Who are the poor?
What is absolute poverty? What is relative poverty?
What is the extent of relative inequality and how is
this related to the extent of poverty?
Who benefits from economic growth?
Does rapid growth
Classical Theories of Development
Theories and Patterns of Structural Change
International Dependence Revolution
Linear Stages Theories
Rostows Stages of Growth (1960):
Stage 1 Traditional soc