Problem 1:

The last half-century has witnessed major changes in the role that governments of developing countries have played, especially in terms of public spending.

(a) Explain the evolution of the role of the state and state intervention in an economy.

(b) Describe the role that governments of developing countries should play in the future.

Problem 2:

(a) Clearly explain what is meant by the following:

(i) Poverty line;
(ii) Absolute poverty; and
(iii) Relative poverty.

(b) Deprivation has many dimensions of which poverty is only one. According to you, what public action must be initiated for deprivation to decline?