Economics 355 Mid-term

D. DeVoretz                                                                                                          October 13, 2004

Name__________________                                                                            ID # __________________

 Tutor’s Name________________

 Instructions: You have exactly 55 minutes. No paper will be accepted after 55 minutes. You may use one aid, a data card for your country.

Part A: True, False or Uncertain: Select first true, false or uncertain, this is worth 1 point. 4 points for reason to be placed in section below question. Answer all.. Use information from your country when appropriate. Total 30 points Each worth 5 pts.

1.        In the Harrod-Domar model the required savings rate varies directly with the capital –output ratio. ____ Why?

 

 

2.        In the first and last stages of the demographic transition theory the crude birth and death rates and population growth are all equal. ____ Why?

 

 

 

3.        Your country gets a relatively low ranking for the Human Development Index while Canada gets a high ranking because Canada has a lower population growth ____ Why?

 

 

 

4.        Urbanization is a severe problem in most poor countries because of push factors outweigh pull factors as determinants of migration. _________ Why ?

 

 

 

 

 

5. A Brain Drain from your country is good for the individual immigrant and the sending country. _____    Why?

 

 

 

 

 

 

 

 

 

 

 

 

6. Larger farms are always  more productive that smaller farms since all crops experience scale economics. _________

Why?

 

 

 

 

 

 

Part B:  Multiple Choice: Select the Best answer and circle your choice. Each question worth 5 points.  Total 30 points.  5 points per question.

 

 

1.        Agricultural development is essential to the development process because it will

 

    1. Provide a surplus for export
    2. Raise the real urban wage
    3. Restrain agricultural labour in the agricultural sector
    4. Raise the standard of living of the poorest in society.
    5. All of the above
    6. All but one of the above

 

  1. The Green Revolution or the use of high yielding varieties of seed

 

    1. Increased total agricultural output in selected crops
    2. Increase income inequality in the rural sector
    3. Increased rural unemployment
    4. Increased the push forces to migrate to the urban sector
    5. All of the above
    6. All but one of the above

 

  1. History tells us that current developed countries

 

    1. Grew for 50 years at 2.5% per capita income per  annum
    2. Had savings rates in excess of 20% annually for 50 years
    3. Experienced declining population growth rates. .
    4. All of the above.
    5. All but one of the above

    

  1. Chinese economic development has been accelerated by

 

    1. High agricultural prices
    2. Massive inflows of foreign direct investment
    3. An undervalued foreign exchange rate
    4. Export led growth
    5. All of the above
    6. All but one of the above

 

 

  1. In the Lewis model development is only possible if
    1. There is redundant agricultural labour
    2. If any agricultural surplus is reinvested
    3. If industrial job growth matches the number of agricultural migrants
    4. All of the above
    5. All but one of the above
    6.  

 

 

  1. Rural-Urban migration is a result of 
    1. Subsistence agricultural wages
    2. Agricultural unemployment
    3. A high expected wage in the urban sector
    4. All of the above
    5. All but one of the above

 

 

 

 

 

 

 

Part C : Essay  You were asked to bring in two articles.  Choose only one article and write a 200-250 word letter to the editor to explain what are the strengths and weaknesses of their description of the causes and consequences of urban-rural migration. In short what has been left out of the article and what analytical points are incorrect in the article given the material that you have learned in the course to date. 

Total 40 points.