Q6
(a) What do you mean by the warranted rate of growth ? Explain the knife edge instability problem in Harrod's growth model. (15 marks) (b) Following Arthur Lewis, briefly state the sources of unlimited supply of labour and explain the mechanism of development of a dual economy of a less developed country. (20 marks) (c) Distinguish between Gender Development Index (GDI) and Gender Empowerment Measure (GEM) in terms of their components and constructions. (15 marks)
हिंदी में प्रश्न पढ़ें
(a) समर्थित संवृद्धि दर से आप क्या समझते हैं ? हैरोड के आर्थिक संवृद्धि प्रारूप में छुरी-धार असंतुलन की समस्या की व्याख्या कीजिए । (15 अंक) (b) आर्थर लुईस द्वारा प्रदत्त प्रारूप के अन्तर्गत श्रम की असीमित आपूर्ति के स्रोतों का संक्षिप्त उल्लेख कीजिए तथा एक अल्प विकसित देश के अन्तर्गत दोहरी अर्थव्यवस्था के विकास हेतु क्रियाविधि समझाइए । (20 अंक) (c) लिंग विकास सूचकांक (GDI) एवं लिंग सशक्तिकरण माप (GEM) में अवयवों तथा निर्माण के आधार पर अन्तर्भेद कीजिए । (15 अंक)
Directive word: Explain
This question asks you to explain. The directive word signals the depth of analysis expected, the structure of your answer, and the weight of evidence you must bring.
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How this answer will be evaluated
Approach
The directive 'explain' demands clear exposition of mechanisms and causal relationships. Structure: brief introduction defining growth models and gender indices; for (a) spend ~350 words on warranted rate, actual vs. natural rates, and knife-edge instability with diagram; for (b) allocate ~450 words on Lewis's surplus labour sources, turning point, and dual economy transition with diagram; for (c) use ~300 words comparing GDI and GEM components, formulas, and policy relevance. Conclude with integrated insights on growth-gender nexus.
Key points expected
- (a) Define warranted rate (Gw = s/Cr) and distinguish from actual (G) and natural (Gn) rates; explain knife-edge instability when G ≠ Gw and the cumulative divergence mechanism
- (a) Diagram: Harrod's growth paths showing instability corridor between warranted and natural rates with arrows showing divergence
- (b) Sources of unlimited labour supply: subsistence sector marginal productivity zero/below subsistence wage, population growth, underemployment, institutional factors; Lewis's wage determination mechanism
- (b) Dual economy development mechanism: capitalist sector profit reinvestment, labour transfer, terms of trade, turning point when surplus exhausted; diagram showing labour supply curve kink at institutional wage
- (c) GDI components: HDI adjusted for gender inequality in life expectancy, education, income; uses female/male achievement ratios with 5% penalty
- (c) GEM components: political participation (seats), economic participation (professional/technical, income), power over economic resources; focuses on empowerment not just welfare
- (c) Key distinction: GDI measures gender gap in human development; GEM measures gender inequality in economic and political power/agency
Evaluation rubric
| Dimension | Weight | Max marks | Excellent | Average | Poor |
|---|---|---|---|---|---|
| Concept correctness | 25% | 12.5 | Precisely defines warranted rate using Harrod's equation Gw = s/Cr; correctly identifies three growth rates and their relationships; accurately distinguishes GDI as welfare-adjusted HDI versus GEM as power/empowerment measure; correctly states Lewis's assumption of zero marginal product in subsistence sector | Defines warranted rate vaguely without equation; conflates GDI and GEM as similar gender indices; mentions surplus labour without explaining wage determination mechanism; minor errors in component identification | Confuses warranted with natural rate; treats GDI and GEM as interchangeable; fundamentally misunderstands Lewis model as unlimited supply at market wage; serious conceptual errors across all parts |
| Diagram / model | 20% | 10 | Draws two accurate diagrams: Harrod's growth paths showing divergence from warranted rate with instability arrows; Lewis dual economy with horizontal labour supply at institutional wage, rising portion after turning point, and MP curve; labels all axes, curves, and equilibrium points clearly | Draws one correct diagram with minor labeling errors; second diagram present but incomplete (e.g., Lewis without turning point); or describes diagrams verbally without clear visual representation | No diagrams or completely incorrect diagrams; confuses Harrod with Domar or Solow; draws standard labour market diagram without institutional wage kink |
| Quantitative reasoning | 15% | 7.5 | States Harrod's fundamental equation Gw = s/Cr with variables defined; explains numerical example of instability when s/Cr ≠ Gn; describes GDI's 5% penalty for gender inequality and GEM's weighted averaging; calculates or illustrates index construction numerically | Mentions equation without explaining variables; vague reference to 'adjustment factors' in GDI/GEM without specifics; no numerical illustration of knife-edge mechanism | No equations or formulas; completely avoids quantitative aspects; incorrect arithmetic if attempted |
| Indian / empirical examples | 20% | 10 | Cites India's Lewis-type transition: green revolution releasing labour, migration to informal sector, manufacturing stagnation; references India's GDI and GEM rankings in HDR reports; compares Kerala (high GDI) with BIMARU states; notes India's GEM underperformance relative to GDI | Generic mention of 'rural-urban migration in India' without Lewis framework; states India has gender inequality without specific HDR data; no state-level comparison | No Indian examples; or irrelevant examples (e.g., Chinese growth model for Lewis); purely theoretical treatment |
| Policy implication | 20% | 10 | Derives specific policies: for knife-edge instability—automatic stabilizers, investment planning; for Lewis transition—skill development, manufacturing promotion, social protection at turning point; for GDI/GEM gap—reservation, childcare, asset redistribution; links gender empowerment to demographic dividend | Generic policy list without linking to model mechanisms; mentions 'women empowerment' without GEM-specific interventions; standard Lewis policy of 'industrialization' without nuance | No policy discussion; or completely disconnected policies (e.g., monetary policy for Lewis model); conclusion without actionable insights |
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