Answer all the problems. Section A to be answered in about 500 words each and Section B to be answered in about 300 words each.

Section A:

problem 1: Describe the main features of Harrod-Domar Growth model. How does the Harrod Domar model describe the occurrence of trade cycles?

problem 2: What are the fundamental elements or ingredients of a dynamic optimization problem? describe the fundamental structure of the optimization in the Ramsay growth model.

Section B:

problem 3: Define any three of the given:

a) Real business cycle theory.
b) Inter-temporal substitution of labor.
c) Disguised Unemployment. 
d) Common Property Resources.
e) Human Capital Formation.

problem 4: Describe the Physical Quality of Life Index (PQLI). Discuss the experience of high GNP countries and low GNP countries with regard to the PQLI.

problem 5: Critically examine Ranis and Fei model of the economic growth.

problem 6: Give a critique of Schumpeter’s theory of development. In what manners can Schumpeter’s theory be considered a theory of evolutionary growth?

problem 7: Compute the circumstances in which the WTO was set up and its importance for developing countries.