ECS 3013 List of Questions for Test 1.(For all theories you should know, main assumptions, basic structure, major conclusions,policy recommendations and criticisms)1.Define economic development.2....

ECS 3013 List of Questions for Test 1.(For all theories you should know, main assumptions, basic structure, major conclusions,policy recommendations and criticisms)1.Define economic development.2. What are the limitations of using GNI growth as a measure of development?3. What is PPP GNI? Does it improve on traditional methods of income comparisonacross countries?4. What are the main characteristics of developing countries? (Know the relationshipsbetween income and literacy, health, poverty etc)5. What are the five stages of economic development according to Rostow? Describeeach briefly.6.What are the determinants of growth according to the Harrod-Domar model?7.What are the determinants of growth according to the Neo-classical (Solow)model of economic growth? What effect do population growth, new technologyand higher savings have on income growth? What are the criticisms of thisapproach?8.Why does the neoclassical model predict income convergence between rich andpoor countries?9.Describe and critically evaluate Arthur Lewis’ theory of growth with surpluslabor.10.Discuss the importance of spillovers and complementary capital in the Romermodel.11.Briefly describe Kremer’s O ring model. Discuss whether it predicts incomeconvergence or divergence.12.Discuss why underdevelopment may be persistent. What can be done ifunderdevelopment is a low-income equilibrium trap?13.Discuss what role geography and institutions play in explaining differences in thewealth of nations. (Know why geography might influence growth, what are goodinstitutions etc)Be sure you know how to interpret basic data and minimal calculations like per capitaanything, growth rates, H-D equation of growth, etc