ECO/V/08 Student's Copy
2 0 1 8
Pre-CBCS
5th Semester
ECONOMICS
EIGHTH PAPER
Economic Development and Planning
Full Marks 75
Time 3 hours
PART A—OBJECTIVE
Marks 25
The figures in the margin indicate full marks for the questions
SECTION—A
Marks 10
Tick the correct answer in the brackets provided 1×10=10
1. In the Solow's growth model, the assumption of constant returns to scale
means that
the steady-state level of output is constant
the saving rate equals the constant rate of depreciation
the number of workers in an economy does not affect the relationship
between output per worker and capital per worker
/261 1 Contd.
2. In Joan Robinson's growth model, capital accumulation depends on
saving-income ratio
profit-wage relation and labour productivity
saving-investment ratio
3. Unbalanced growth hypothesis is formulated on the assumption that
expansion takes place simultaneously on several routes
the supply of labour and capital is fixed
the supply of labour and capital is abundant
4. According to Marx, who are exploited by the capitalist class?
The bourgeois
The proletariat
The communist
5. The theory of Big Push is associated with the name of
W. A. Lewis
A. O. Hirschman
P. N. Rosenstein-Rodan
6. According to Myrdal, the main cause of backwardness and regional
disparities has been
the strong backwash effect and the weak spread effect
the weak backwash effect and the strong spread effect
the strong backwash effect and the strong spread effect
7. The theory of critical minimum effort is associated with the name of
W. A. Lewis
Higgins
Leibenstein
8. Which of the following is the limitation of cost-benefit analysis?
Difficulty in cost assessment
Difficulty in benefit assessment
Both of the above
ECO/V/08 2 Contd.
9. One of the main purposes of economic planning is
to create monopolistic power
to increase money supply
to reduce price instability
10. According to Lewis, the subsistence sector is
that part of the economy which is not using reproducible
capital
that sector which paid higher wages
that part of the economy which is using reproducible
capital
SECTION—B
Marks 15
Write short notes on the following 3×5=15
1. Economic development
2. Surplus value
3. Social dualism
4. Internal rate of return criterion
5. Microlevel planning
PART B—DESCRIPTIVE
Marks 50
The figures in the margin indicate full marks for the questions
1. Describe the factors affecting economic growth. 10
OR
What do you mean by economic growth? Critically explain Rostow's
stages of economic growth. 2+8=10
2. Explain the Marxian theory of economic development. 10
ECO/V/08 3 Contd.
OR
Explain the theory of economic development as propounded by
Schumpeter. 10
3. Discuss the principal features of Big Push theory. What are its
limitations? 7+3=10
OR
Discuss the balanced and unbalanced growth strategies. 10
4. Bring out the need for investment criteria in less developed countries
(LDCs). 10
OR
What is meant by cost-benefit analysis? Explain its relevance for
making investment decision-making. 4+6=10
5. What is economic planning? Discuss the need for planning in less
developed countries (LDCs). 3+7=10
OR
Discuss the argument for and against economic planning. 10