ECON 1100 – Global Economics (Section 08) Exam #4 – Spring 2008 (Version B) Multiple Choice Questions (212 points each): 1. From the middle of 1921 through the middle of 1929, the U.S. economy was characterized by a. tremendous increases in per capita GDP. b. very low levels of unemployment, but historically high rates of inflation. c. very low inflation rates, but historically high levels of unemployment. d. multiple crashes of the New York Stock exchange, which left most people in the country bankrupt. 2. Under “command planning” in the Soviet Union a. the industrial sector was very efficient and could produce more output with fewer inputs than enterprises in similar sectors in other countries. b. it was more expensive to take a cab from the airport in Moscow to Red Square than it was to fly from Vladivostok to Moscow. c. a very large fraction of total resources were devoted to national defense. d. More than one of the above answers is correct. 3. The Balcerowicz Group a. supported gradual economic reform, not “Shock Therapy.” b. was led by Leszek Balcerowicz, who served as Finance Minister and Deputy Prime Minister in the new Solidarity government in Poland. c. gained control of the Commanding Heights of the Russian Economy through “Voucher Privatization.” d. More than one of the above answers is correct. 4. The “Household Responsibility System” a. allowed farmers to sell output above a quota level for a profit in the marketplace. b. reintroduced “economic incentives” into production within the agricultural sector in China. c. was the central component of reform within State Owned Enterprises in China. d. More than one of the above answers is correct. 5. Which of the following caused an “Oil Crisis” in the 1970’s? a. The breakup of John D. Rockefeller’s Standard Oil Trust Company. b. The Oil Embargo imposed by Arab members of OPEC during the Yom Kippur War. c. The election of Jimmy Carter in 1976, and the subsequent transfer of power from Ford to Carter. d. More than one of the above answers is correct.6. _______________ was the leader of China during the time when the country implemented a system of “Soviet style Command Planning.” a. Deng Xiaoping b. Mao Zedong c. Boris Yeltsin d. None of the above answers is correct. 7. “Black Thursday” refers to a. the semi-free elections in Poland on Thursday, 6/4/1989, during which the Solidarity Party came to power. b. Thursday, 11/9/1989, the day when the Berlin Wall was taken down, leading to the reunification of Germany. c. the U.S. stock market crash which occurred on Thursday, 10/24/1929, at the start of what would become the Great Depression. d. None of the above answers are correct. 8. Between 1978 and 1996, the Chinese economy experienced a. a doubling of per capita income between 1978 and 1987, followed by another doubling of per capita income between 1987 and 1996. b. a movement toward a system of Soviet style Command Planning. c. negative GDP growth, leading to a decrease in living standards. d. More than one of the above answers is correct. 9. ____________ became known as “Europe’s New Tiger,” because of its strong economic performance starting in the mid 1990’s. a. The Slovak Republic b. Poland c. Great Britain d. Russia 10. The “National Recovery Administration” was a. Richard Nixon’s attempt at to completely eliminate intervention in the economy by the federal government. b. declared Unconstitutional by the Supreme Court in 1935. c. Franklin Roosevelt’s idea for a “partnership in planning between government and business.” d. More than one of the above answers is correct. 11. In Las Vegas there are many fewer restrictions on individual behavior than in most other cities in the U.S. (e.g. – gambling is legal, consumption of alcohol in public is legal, etc.). A parallel could be drawn between “the ‘different rules’ that people face when in Las Vegas” and the a. establishment of Special Economic Zones within China. b. Household Responsibility System first implemented in China in 1979. c. creation of regulatory agencies in the U.S. as part of the New Deal. d. attempt at “Soviet style Command Planning” in China post WW-II.12. During the 1920’s many individual investors in the U.S. purchased stock “on margin,” meaning that they a. borrowed money in order to purchase stock. b. purchased stock in companies that they knew would likely go bankrupt within the next couple of years. c. made purchases at prices well below the “true market value” of the stock. d. None of the above answers are correct. 13. ____________ was the leader of the Soviet Union when the Solidarity Party gained political control of Poland during the semi-free elections of 1989. a. Dolph Lundgren b. Mikhail Gorbachev c. Boris Yeltsin d. Vladimir Vladimirovich Putin 14. ____________ was known as the “trust buster,” having launched anti-trust suits during his administration that led to the breakup of over 40 monopolies. a. Theodore Roosevelt b. Franklin Roosevelt c. Mao Zedong d. Richard Nixon 15. _______________ refers to the movement launched by Mao Zedong to rid China of “liberal bourgeoisie elements” and continue “revolutionary class struggle.” a. Shock Therapy b. The Great Leap Forward c. The Cultural Revolution d. The Household Responsibility System 16. Madagascar experienced a per capita GDP growth rate of roughly 5% in 2007. If they were to continue to experience this rate of per capita GDP growth, then by the “Rule of 70” their per capita GDP would double in roughly ______ years. a. 70 b. 20 c. 14 d. 5 17. The economic system which has emerged in China could be described as “Socialism with Chinese Characteristics.” This system a. is the first instance of “Pure Communism” instituted in the real world. b. relies entirely upon free markets to allocate all economic resources. c. is one in which the assets of much of the industrial sector are owned by the state, but in which the primary functions of economic coordination are performed by the market. d. is one in which most assets are privately owned, but all decisions regarding the use of resources are made by government bureaucrats.18. During much of the 1970’s the U.S. economy experienced a. multiple crashes of the New York Stock exchange, which left most people in the
View Full Document
Unlocking...