NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF ARTS AND SOCIAL SCIENCES
APRIL/MAY 2019 EXAMINATION

COURSE TITLE: DEVELOPMENT ECONOMICS I

COURSE CODE: ECO 347

UNITS: 2.

TIME ALLOWED: 2 HOURS

INSTRUCTION: ANSWER QUESTION (ONE) AND ANY OTHER TWO

Question 1

a) The table below presents some recent macro data for Nigeria.

i. How much was NGDP per capita in the year 2018? (4 marks)

ii. Calculate the average annual growth rate in the real income of a typical family of four in Nigeria over the period 2008-2018 (8 marks)

iii. Calculate the annual inflation rate in the GDP deflator (4 marks)

iv. Calculate the annual inflation rate in the CPI. Show all your works (4 marks)

b) Sustainable development is not so easy to measure mainly because it involves the valuation of environmental damage and comparing it with costs of preventing it.

Discuss four (4) different approaches used in measuring environmental values in sustainable development (10 marks)

Question 2

Discus five (5) economic factors and five (5) non-economic factors that determine economic growth and development of a country (20 marks)

Question 3

a) Explain the relationship between steady-state, breakeven investment and investment per effective worker in Solow growth model (10 marks)

b) Discuss and analyse four (4) determinants of steady-state growth path in Solow economy (10 marks)

Question 4

a) Discuss the major variables that economic growth rates depend on in Harrod-Domar Model of Growth and what are implications of this Model of Growth to the developing countries. ( 14 marks)

b) Briefly explain the major causes of vicious circle of poverty using the supply and demand side diagram (6 marks)

Question 5

Outline the major points or contributions of the following theories to economic development. a) Rostow theory (5 marks)

b) The Marxian Theory (5 marks) c) Lewis’ Theory (5 marks) d) Balanced and Unbalanced Growth Theories (5 marks)