1. In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate? 2. Why must projects be appraised? What do we learn from project appraisals? 3. How does the Washington Consensus differ from the Santiago Consensus? 4. What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries. 5. Briefly explain the major argument of the factor endowment trade theory. 6. Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.