DOC PREVIEW
KSU ECON 1100 - Exam 4 ECON 1100

This preview shows page 1 out of 4 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

ECON 1100 – Global Economics (Section 09) Exam #4 – Spring 2008 (Version D) – Answer Key Multiple Choice Questions (212 points each): 1. Perestroika d. means “restructuring,” referring to restructuring of the Soviet economy. 2. The _____________ trigger a worldwide financial crisis, at the start of the “Great Depression.” c. Stock Market Crash of 1929 3. 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. 4. _________ was co-founder of the labor federation Solidarity and President of Poland from 1990-1995. b. Lech Wałęsa 5. An “Iron Rice Bowl” refers to b. a job within a Chinese State Owned Enterprise. 6. “Economies of Agglomeration” refer to d. benefits that firms obtain from locating near other firms. 7. Following the Great Depression, the U.S. c. embraced regulation and government intervention in the economy, but did not become a “planned economy” like many countries in Europe. 8. The “Great Leap Forward” refers to 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. 9. In which of the following countries was economic reform instituted by way of “Shock Therapy”? b. In Poland, when Lech Wałęsa was President. 10. 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. c. the “Pearl River Delta” region of the Guangdong Province 11. Which of the following was NOT a characteristic of Chinese economic reform? c. “Centralization.”12. Jeffrey Sachs b. was a strong supporter of “Shock Therapy” as a method of economic reform in Eastern Europe. 13. Farmers in the United States chose to drown baby chickens a. in response to the wage and price controls implemented as part of Richard Nixon’s New Economic Policy (since at the controlled prices it was no longer worthwhile for them to raise the chickens for meat). 14. The Federal Trade Commission was created in order to b. police bigness, restrict restraint of trade, and prevent unfair business practices. 15. The “semi-free elections of 1989” in Poland c. began the collapse of Communism in Europe, as Mikhail Gorbachev told Communist leaders in Poland to accept the outcome of the elections. 16. Under “command planning” in the Soviet Union prices were c. set by the government agency Gosten. 17. If a price floor of $6.80 were imposed in this market, then ______ units would be traded. c. more than 2,600 but fewer than 4,870 18. In comparison to the “free market outcome,” imposing a price ceiling of $3.00 would increase Total Consumers’ Surplus by d. area (c) minus area (f) 19. Deadweight-Loss would be equal to “area (f) plus area (g)” d. More than one of the above answers is correct. 20. Between 1978 and 1996, the Chinese economy experienced a. a rate of GDP growth greater than that of any other part of the world during the same time-period. 21. As a result of Privatization in Russia, by 1996 d. More than one of the above answers is correct. 22. The “end of communism” in Europe began in b. Poland 23. Deng Xiaoping was b. the person responsible for implementing economic reform in China starting in 1978.24. During the time of Economic Reform in Russia, large gains in output were expected from “converting the defense sector” because d. More than one of the above answers is correct. 25. Currently China b. has a population of over 1.3 billion people (roughly 20% of the global population), making it one of the largest consumer markets in the world. 26. The first enterprise to be privatized in Russia by way of “voucher auction” was d. the Bolshevik Biscuit Factory. 27. The per capita GDP of New Zealand increased by roughly 2% in 2007. By the “Rule of 70” we can infer that if New Zealand were to experience this rate of growth for the next 50 years, then per capita GDP in 2057 would be d. more than twice as large as per capita GDP in 2007. 28. The ideas of John Maynard Keynes b. began to be applied in practice in the U.S. before the start of WW-II, and continued to be used in the decades immediately following WW-II. 29. “Special Economic Zones” in China d. More than one of the above answers is correct. 30. A “trust” is a. a large business entity with substantial market power, which takes actions to maintain or increase its market power. 31. Which of the following agencies was NOT created as part of the “New Deal”? d. the Interstate Commerce Commission. 32. The Gaidar Reforms b. were similar to the Sachs/Balcerowicz reforms instituted in Poland the previous year. 33. During the 1920’s in the United States b. the value of the Dow Jones Industrial Average increased by roughly 600% between 1921 and 1929. 34. The “Contract Responsibility System” implemented in China in the 1980’s c. attempted to reform “State Owned Enterprises” by replicating the agricultural reforms of the “Household Responsibility System” in the industrial sector.35. The “Balcerowicz Group” c. implemented economic reforms in Poland on 1/1/1990 under which price controls were lifted, the tax structure was reformed, and the currency was devalued and switched to a “floating exchange rate.” 36. The programs of “Privatization for Cash” which the Russian government undertook starting in 1995 a. consisted in large part of “loans-for-shares” deals, under which the government used shares in public enterprises as collateral for loans from the private sector, which were never intended to be repaid. 37. ________ was known as the “trust buster,” having launched anti-trust suits leading to the breakup of over 40 monopolies. a. Theodore Roosevelt 38. As a result of China’s membership in the World Trade Organization d. None of the above answers is correct. 39. The economic system which has emerged in China could be described as “Socialism with Chinese Characteristics.” This system a. is a model very similar to that of France or Great Britain pre-privatization. 40. During the 1970’s the U.S. economy a. experienced relatively high rates of inflation (peaking at an annual rate of 12.34% in December 1974, the


View Full Document

KSU ECON 1100 - Exam 4 ECON 1100

Documents in this Course
Load more
Download Exam 4 ECON 1100
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Exam 4 ECON 1100 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Exam 4 ECON 1100 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?