Development Theory and Experience — DU B.A. (Hons.) Economics Previous Year Question Papers

TATE: " these trait 1. (a) Imagine you are a policymaker in a country with high fertility rates How would you use the cost-benefit analysis of childbearing to form a national I TAICIT and get or d (12) population policy? (b) What is the "puzzle n the Marshallian Critique? Is the ineffi one in sharecropping due to technology or incentives? Explain. Iate it d " (al"A monity tender provides a loan of 7100 at an interest tate dr 20% 35 th rural credit market. Suppose the safe borrower repays with a probability of 0.9 while the risky borrower repays with a probability of 06 Calculate the a teed etom each borrowertype, Which brower does the lender prefer? (b) A lender cannot distinguish between'safe and'tisky börröwers Safe borrower's repay with'high-probäbility while risky börrowers répay less often! if the interest rate rises, which type of borrower is more likely to remain lin the (3) L ulle ir market?r! - til i f (c) Explain the statement: "In rural credit markets, borrowers who are more patient (i.c., have longer time horizons) can be offered retalively less " Favourable toán terms without increasing the risk of defaule? - N iT (10) 3. Consider an economy plagued with high levels of informal unemployment. In your opinion, what would happen to the size of the informal sector if policymakers embark on a Keynesian expansion to increase formal sector Iu ra).- Critically analyse the "double incentiye problem" in sharecropping contracts, (9.) Why do both fixed-rent tenancy and wage-labour fail to provide, efficient incentives when both landlord and tenant must exert effort? Explain how Istr: sharecropring emerges as a compromise, șolution, and evaluate whether it (17) fully resolves, the inefficiency, on merely mitigates itin » wi wr v0p (10) (°) Evaluate the effect of potential eviction on the welfare of the tenant in the si"urg duite ei ofs lenger rural land market. (8) 5. (a) Based on the energy balance and work capacity, suppose a worker's daily energy intake is given by: 7, = x, - 5 - 9, ador cade setef dea cilin yub " ae bada so de where: X, = 2500 Calories (total intake); [, =11500, Calories, (resting metabolic requirement); 9, = 700 Calories (energy spent on work effort). I. Calculate the worker's net energy balance, z,. ill' F l (2) Tf the minimum required energy, for maintaining body mass, is 300 T 0 = Calories determine whether the worker s nutritional status improves or deteriorates: inr 11 vsb e lasst ar ai dey (2) , Explai howa fallin wage (ręducing x, to 220%) affects work capacity and long-run productivity. (2) (cx (b) In casual labour markets both workers, and employers are at a disadvantage, the former due to low nutritional status and the latter due to hiring low-productivity labour. Explain. mund inper hew more) lI (12) see ciolaholiO 6. Critically evaluate the roles of markét, stäte, and 'civil society in promoting ritalie li (18) : "economic development."