MEC-104 Archives - IGNOU CORNER

Why does diminishing returns to capital not take place in the AK growth model? Analyse the Lucas model of endogenous growth, bringing out the role of human capital.

Introduction Economic growth models help us understand the drivers of long-term increases in national output and living standards. Traditional neoclassical models, like the Solow model, predict diminishing returns to capital, meaning that each additional unit of capital contributes less to output. However, new growth theories—particularly endogenous growth models—challenge this idea. Two such models are the […]

Why does diminishing returns to capital not take place in the AK growth model? Analyse the Lucas model of endogenous growth, bringing out the role of human capital. Read More »

MEC-104: Economics of Growth and Development – Solved Assignment 2024-25 (All Questions Answered)

What impact do geographical factors have on economic development?

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Introduction Geography plays a fundamental role in shaping the economic development of nations. While technology, institutions, and human capital are critical, geographical factors such as location, climate, natural resources, and terrain significantly influence a country’s ability to grow and develop. This answer explores the major geographical factors and their impact on development. 1. Climate and

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Discuss the relationship between income inequality and economic growth.

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Introduction The relationship between income inequality and economic growth has long been debated among economists, policymakers, and development experts. While some believe that a certain level of inequality can encourage innovation and investment, others argue that excessive inequality harms sustainable growth. This answer explores both sides of the argument and highlights recent findings on how

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What are the various approaches to the measurement of total factor productivity? Explain.

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Introduction Total Factor Productivity (TFP) is a key indicator of an economy’s efficiency in using its resources, particularly capital and labor. It measures the portion of output not explained by the amount of inputs used in production. TFP is crucial for understanding long-term economic growth, innovation, and technological progress. This answer outlines the major approaches

What are the various approaches to the measurement of total factor productivity? Explain. Read More »

Describe the characteristic features of labour markets in developing countries.

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Introduction Labour markets in developing countries are distinct in structure, behavior, and functioning compared to those in developed economies. These differences arise from demographic, institutional, economic, and social factors. Understanding the features of labour markets in developing countries is crucial for designing effective employment and development policies. Characteristic Features of Labour Markets in Developing Countries

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Distinguish between economic growth and development. Briefly mention the main benefits that economic growth confers upon society.

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Introduction In economics, the terms “economic growth” and “economic development” are often used interchangeably, but they represent different concepts. While growth refers to quantitative changes in an economy’s output, development encompasses qualitative changes that improve people’s living standards. This answer explores the key differences between these concepts and outlines the major benefits that economic growth

Distinguish between economic growth and development. Briefly mention the main benefits that economic growth confers upon society. Read More »

Explain how the Solow model differs from the Harrod-Domar model. Which of the two do you think is more relevant in describing the development process of developing nations?

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Introduction Economic growth models provide frameworks to understand how economies expand over time. Two of the most prominent models in the theory of economic growth are the Harrod-Domar model and the Solow growth model. While both models aim to explain the process of economic growth, they differ significantly in assumptions, mechanisms, and implications. This answer

Explain how the Solow model differs from the Harrod-Domar model. Which of the two do you think is more relevant in describing the development process of developing nations? Read More »