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FACULTY Economic and Management Sciences

DEPARTMENT Economics

SUBJECT Economics of Growth and Development

SUBJECT CODE EGD3872

DATE coTBER/ NOVEMBER 2018

3 Hours MARKS 100

DURATION

SU PPTEM ENTARY/ SEPECIAL EXAMINATION

Examiner: Ms. J.M. Mumangeni (UNAM)

Moderator: Prof. Happy Siphambe (University of Botswana)

This question paper consists of three (4) pages including this front
pages

lnstructions

There are six questions. Answer Any five questions. Number all questions correctly.

UNIVERSITY OF NAMTBIA EXAMINATIONS

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 Question 1

1.1 Below are some facts on country A on human development index

in 2ot7
Life expectancy at birth is 74 years
Adult literacy rate is 78.9 per cent
Gross enrolmeni rate is g7 per cent
GDP per capita is 57263

Note that HDI "goalpost" for assessing life expectancy range from
a minimum value of 25 years to
a maximum of 85 years. Access to resource "goalposts are
StoO to S4oOOo. Round off to three
decimalpoints.

(a) Calculate HDt life expectancy index. (1)

(b) Calculate HDt education index (3)

(c) Calculate HDtGDp index.

(1)

(d) Calculate overall Human Development lndex (3)

(e) lnterpret your result. (2)

1.2 With the help of a diagram explain the Lewis model of modern-sector growth
in a two - sector
surplus-labour economy. (10)

Question 2

For a particular economy, the following capital input (K) and labor input (N)
were reported in four
different years:

year K N

7 200 1000

2 250 1000

3 250 L250

4 300 7200

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 The production function in this economy is

Y _ K03 L07

Where Y is total output.

2.1, Find

(a) total output

(4)
(b) the capital-labor ratio
(4)
(c) output per worker in each year
(4)

2.2

Give arguments for and against democracy

as a factor promoting economic growth. (8)

Question 3

(a) what types of policies are available to government

a that wants to promote long run living
standard? For each type of policy you identify,
and explain briefly how the policy is supposed
work.
to
(10)
(b) with a herp of diagram exprain and discuss endogenous
growth moder. (10)

Question 4

(d) Explain the concept of Resources Mobilization. what measures

do you suggest to increase the
resource mobilization in Namibia for the
economic development? (10)
(e) what is the relationship between a Lorenz curve and
a Ginicoefficient? show how Lorenz
curve
and Gini coefficient are constructed. (10)

Question 5

(a) with a herp of diagrams exprain and discuss conditionar convergence.

(14)

3lFage

H
 (b) Research has identified a long list
of missing inputs in the production that have
impacts on
economic growth. Exprain the impact
of human capitaron economic growth. (6)

Question 6

(a) Briefly explain three steps of project appraisal

(b) Discuss what is meant by insorvent borrower and (10)
iriquid borrower. (s)
(c) Briefly discuss the importance of Foreign
Aid in the economic development of developing
countries.
(s)

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