ECON 355

Midterm Exam

June, 1994

Instructor: Prof. D. DeVoretz

Dept. of Economics

Simon Fraser University

Instructions: Do any three questions. You have 2 hours. Each question is worth 33 points.

1. With the aid of 4 indicators place your country in the bottom, lower middle or upper middle range of development. Indicate were each separate indicator would place your country. Next, argue the strengths and weaknesses of each indictor. Finally, tell us how you weight the individual indicator to arrive at your final assessment.

2. The demographic transition theory argues that as development proceeds a country will pass from stage one or two through to stage four.
1. Outline the four stages of the model and explain what demographic factor drives each stage.
2. Place your country in its current stage and add the correct numbers to the diagram.
3. What prevents your country from moving to the next stage?
4. If your country moved from its current stage in the demographic transition theory to stage IV how fast would your country now grow?

3. Outline the historical forces that led to Kuznets argues that are a requirement for development?
1. Now which of these requirements are being met by your country?
2. Now which of these requirements are not being met by your country?

4. The labor surplus or W.A. Lewis model argues that under certain conditions excess labor could be converted to a growth force.
1. Explain the several stages of the W.A. Lewis model.
2. Next, where is your country in the model?
3. Has your country achieved the balanced growth path of Lewis with no urban un(under)employment?