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

1. (a) Explain how change in family structure affects fertility rate in an economy. (b) Analyse the effect of increase in female wage rate on fertility using cost-benefit model of fertility choices. (18) 2. (a) Explain the Harris Todaro model of rural-urban migration and derive its equilibrium condition. (18) (b) Explain two policies that result in efficient allocation of labour force in the context of Harris Todaro model of rural-urban migration. (9+9) (a) Explain how interlinkages of credit and labour markets prevent distortion in a developing country’s rural area. (18) (b) Explain why, despite Marshallian inefficiency, sharecropping enjoys enduring popularity in rural land market with prevalence of risk and uncertainty. 4. (c) “Judicious land reform has the power to increase overall output in the economy”. Explain this statement in the context of nutrition based labour supply model. (18) (a) (b) Individually rational strategies may lead to collectively irrational outcomes. Explain this statement in the context of Hardin’s prisoner’s dilemma game. (18) Explain the concept and rationale of development planning in developing economies. (18)