ECON 1100 – Global Economics (Section 09) Exam #4 – Fall 2007 (Version C) Multiple Choice Questions (212 points each): 1. The “Great Leap Forward” refers to a. the mass emigration from China which occurred from the nineteenth century through 1949. b. the social movement launched by Mao in the 1960’s to rid China of “liberal bourgeoisie elements” and continue “revolutionary class struggle.” c. the economic movement launched by Mao in the late 1950’s to “harness the ideological fervor of the Chinese population” to the task of raising economic output. d. None of the above answers are correct. 2. Which of the following corporations is NOT a Chaebol? a. Samsung b. Mitsubishi c. Hyundai d. LG 3. Much of the economic growth that occurred in China since 1978 was concentrated in ___________, which grew at a rate of 17.3% per year between 1978 and 1993. a. the “Pearl River Delta” region of the Guangdong Province b. the autonomous region of Inner Mongolia c. the highly productive agricultural regions of the Sichuan Province d. Taiwan 4. The World Trade Organization a. has prevented China from becoming a member, due to China’s horrific human rights record. b. was created on 1/1/1995, as a successor to GATT. c. is an organization designed to increase barriers to international trade. d. More than one of the above answers is correct. 5. The Singapore economy a. is a “laissez-faire” economy with virtually no government intervention. b. has a relatively high level of government intervention, with an emphasis on attracting investment from large multi-national corporations. c. consists primarily of Keiretsu (coalitions or networks of large enterprises with “interlocking business relationships and/or shareholdings”). d. consists of a large network of small, family-owned enterprises.6. The non-violent 1989 revolution in Czechoslovakia that led to the overthrow of the communist government was known as a. Shock Therapy. b. the Gaidar Reforms. c. the Velvet Revolution. d. Velvet Revolver. 7. The Asian countries which experienced tremendous growth during the second half of the twentieth century typically had ___________ during their period of growth. a. relatively low rates of inflation b. large government budget deficits c. low individual savings rates d. More than one of the above answers is correct. 8. Which of the following was NOT a characteristic of Chinese economic reform? a. “Gradualism.” b. “Decentralization.” c. “Shock Therapy.” d. “Economic Liberalization without Political Democratization.” 9. A “Special Economic Zone” is a. a geographical region in which the behavior of enterprises is constrained by fewer restrictions than in the rest of the country. b. an international organization designed to supervise international trade and to promote free trade among member countries. c. a State Owned Enterprise, which operates more efficiently than a privately owned enterprise. d. a “commune,” in which production is “collectivized” and output is shared equally among all households. 10. Under a “Floating Exchange Rate” system a. it is illegal for foreign investors to purchase a currency. b. the value of a currency is set equal to the value of another single currency. c. the value of a currency is allowed to fluctuate and is determined within the “foreign exchange market.” d. More than one of the above answers is correct. 11. Which of the following was NOT a part of the “Gaidar Reforms” introduced in Russia? a. The introduction of price controls in an attempt to stop inflation. b. Privatization of government controlled enterprises. c. The creation of a “Social Safety Net,” including unemployment compensation. d. The shift of resource use away from the defense sector and toward the production of non-military goods.12. An “Iron Rice Bowl” refers to a. a job within a Chinese State Owned Enterprise. b. the emerging military power of China in the early part of the twenty-first century. c. the reform instituted in Chinese agricultural starting in 1979. d. None of the above answers are correct. 13. One “notable failure of Japanese industrial policy” during the second half of the twentieth century was a. the inability of Japanese manufacturers of consumer electronics to earn profits in foreign markets, even with substantial government support. b. the tremendous amount of resources devoted to the “Heavy and Chemical Industries Initiative” by South Korea in the 1970’s. c. the attempts by the Japanese government to have Honda focus on motorbike production as opposed to automobile production. d. the controversial “Loans-for-Shares” deals during privatization. 14. The financial crises which spread through Asia in 1997-1998 were referred to as a. Contagion b. Shock Therapy c. Malaise d. Malaria 15. Under “command planning” in the Soviet Union prices were a. set by The Red Army. b. set directly by the Prime Minister. c. determined by the free interplay of Supply and Demand. d. set by the government agency Gosten. 16. _______________ refers to “close relations between businesses, banks, and government agencies, leading to ‘favoritism,’ ‘sweetheart deals,’ corruption, and poor corporate governance.” a. Contagion b. Crony Capitalism c. Partial Reform d. Augmenting the Market through Competition 17. A Chaebol is a. a large business conglomerate, typically owned by a single family, operated with authoritarian management and with substantial government assistance. b. a coalition or network of large enterprises with “interlocking business relationships and/or shareholdings.” c. a government owned/operated enterprise, with the primary goal of “providing high quality consumption goods for the citizenry.” d. None of the above answers are correct.18. The Balcerowicz Group a. supported gradual economic reform, not “Shock Therapy.” b. gained control of the Commanding Heights of the Russian Economy through “Voucher Privatization.” c. was led by Leszek Balcerowicz, who served as Finance Minister and Deputy Prime Minister in the new Solidarity government in Poland. d. More than one of the above answers is correct. 19. _________ means “openness,” referring to the shift toward openness and transparency in governmental decision making, along with
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