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Explain the International Dependence model and the False Paradigm model of economic development. Are these models realistic illustrations of the MDC-LDC economic relations? Explain how these models explain the underdevelopment of the Third World?

  1. Explain the International Dependence model and the False Paradigm model of economic development.  Are these models realistic illustrations of the MDC-LDC economic relations? Explain how these models explain the underdevelopment of the Third World?
  2. What are the principal sources of economic growth? How do you illustrate economic growth using the Production Possibility Curve?  Depict and explain the effects of technological improvement in production of two goods: one land-intensive (e.g., rice) and the other capital-intensive (e.g., radio). Depict and explain the effects of persistent unemployment in production of rice.
  3. Present the Lewis model of structural transformation from rural-agricultural to urban-industrial production.  Explain, illustrate, and criticize the validity of the model.
  4. Present the Malthusian Trap theory of population growth.  Discuss why the human society has been able to avoid the trap.  Find a developing country that has fallen into this trap, and a developing country that has avoided falling into this trap.
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