Question:BUS272 - Changing Economies of Asia: Sample MCQ Practice Questions

(Compiled Set)

(Some Questions may repeat.)

 

 

4.  Newly Industrialized Economics emerged in the following manner:

A) Started with EOI and now following ISI policies.

B) Started with both EOI and ISI together

C) Started with ISI first and then following EOI

D) None of the above.

 

5.     The terms of trade measure

The price of a country's export good relative to the price of an average world good.

B) Whether the country's export good relative to the price of an average world good.

C) The country's nominal interest rate relative to the world nominal interest rate.

D) the country's real interest rate relative to the world real interest rate.

 

6.     What name is given to the theory that nations gain by specializing in products for which their cost of production are low and importing products for which their relative costs of production are high?

A) Neo-classical growth theory.

B) The modern theory of imperialism.

C) the theory of laissez-faire capitalism

D) the theory of comparative advantage.

 

 

9.     Structural change increases efficiency and output because:

A) it involves the transfer of abundant resources from the export sector to domestic production.

B) it involves the relocation of resources from domestic production to the export sector.

C) it involves the movement of scarce productive assets from less productive to more productive locations and uses.

D) it involves the movement of abundant resources from less productive to more productive locations and uses.

 

10. The term 'Green Revolution' refers to:

A) The growing awareness of ecological problem in agriculture.

B) Sweeping land reforms.

C) The use of improved seed varieties to increase farm yields.

D) farm mechanization to release labor from agriculture.

 

 

13. Economists traditionally have suggested that a major goal in fisheries management should be

A) Maximum sustainable yield.

B) Maximum economic yield.

C) Bionomic equilibrium.

D) Increased subsidies to poor fishers.

 

14. Outward looking growth strategies emphasize:

A) Protection for export competing industries.

B) Protection for import competing industries.

C) Resources allocation based on the principle of comparative advantage.

D) Resource allocation based on the principle of absolute advantage.

 

15. High complementarity arises when:

A) Nations sign treaties of friendship

B) Nations have significant differences in term of technologies and resources.

C) Nations have leaders who get along well.

D) Nations have insignificant difference in terms of technologies and resources.

 

16. Open access resources (e.g. an unregulated fishery) tend to be:

A) Used until the net marginal value of additional use is less than zero.

B) Used until the marginal private cost and marginal social costs are equalized.

C) Resources in abundant supply and thus have no price.

D) Over-harvested, because everyone uses the resource until the net marginal value of additional use is zero.

 

17. The 'flying geese' model:

A) Analyses changes in comparative advantage of different industries in East Asia.

B) Describes the breeding practices of wild geese in Japan.

C) Explains the pattern of trade in advanced economies.

D) None of the above.

 

18. Which if the following best explains why import- substitution industrialization tends to fail?

A) The domestic market is soon saturated.

B) The population has too little purchasing power to support a growing industrial sector.

C) the imports of equipment to develop industry create problems with the balance of payment unless export income can be generated.

D) All of the above.

 

 

 

 

21. According to neo-classical theory as capital is accumulated and capital per unit of labor increases:

A) This leads to less output since workers tend to become less hard working when working with big machines.

B) Increases the productivity of labor and economic growth.

C) The marginal productivity of capital increases.

D) This leads to a reduced rate of economic growth as workers lose their jobs to the machines.

 

 

22. Empirical studies have found that small-scale firms in NIEs:

A) Use more modern production techniques than large firms.

B) Are more labor intensive than large-scale firms for most, but not all, products.

C) are operated very inefficiently.

D) Both B & C.

 

 

25. As a first approximation, whether trading blocs increase economic welfare depends on:

A) The success of bilateral trade negotiations.

B) Trade creation exceeding trade diversion

C) Trade diversion exceeding trade creation.

D) The principle of absolute advantage.

 

26. Which of the following is an example of rent seeking behavior?

A) Steel companies seeking tariffs on steel imports.

B) Accountants seeking to maintain high standards by making the professional qualifying exams even more difficult.

C) Car companies lobbying for new laws that restricts the number of competitors allowed in the domestic market.

D) All of the above.

 

27. A newly industrializing economy shows the following characteristics:

A) The adoption of an import substitution industrialization strategy.

B) An economy dominated by large-scale industrial conglomerate (except in Taiwan).

C) Rapid structured change, including fast growth in absolute levels of employment; fast growth in the share of industrial employment; a rising share of the world's manufactured exports.

D) A sudden inflow of official development aid for targeted industries.

 

 

30. Modern economic growth is characterized by:

A) The growth of manufacturing exports based mainly on encouraging foreign direct investment.

B) The rapid growth in imports of mineral and energy resources.

C) The structural transformation from agriculture to industry and services

D) the absolute decline of the agricultural sector.

 

31. The single most important characteristic of industrial policy in the NIEs was:

A) The use of protective tools such as discriminatory tariffs, preferential taxes and export restrictions to promote selective sector growth.

B) State intervention at the level of the individual firm.

C) The use of indicative planning.

D) A balancing of pro-growth and anti-growth policies to maximise social outcomes during rapid structural change.

 

 

33. A Newly Industrialising Economy shows the following characteristics:

A) The adoption of an import substitution industrialisation strategy.

B) An economy dominated by large-scale industrial conglomerates (except in Taiwan).

C) Rapid structural change, including fast growth in absolute levels of employment; fast growth in the share of industrial employment; a rising share of the world's manufactured exports.

D) A sudden inflow of official development aid for targeted industries.

 

 

 

36. Choose the best definition of economic growth from the following alternatives:

A) An increase in investment.

B) An increase in consumption.

C) An increase in the productive capacity of the economy.

D) An increase in household incomes.

 

37. Which of the following is the most appropriate statement about agricultural policy in the NIEs?

A) To hasten structural change polices to reduce tariff protection have been given the highest priority

B) Tariff polices have had a positive effect on the incomes of agricultural producers.

C) Dramatic increases in agricultural production have been achieved through a combination of an overvalued exchange rate and government control of marketing channels.

D) Downsizing the agricultural sector has always been a major focus of government policy.

 

38. Newly Industrialised Economies emerged in the following manner:

A) Started with EOI and now following ISI policies

B) Started with both EOI and ISI together

C) Started with ISI first and then followed EOI.

D) None of the above.

 

39. The Newly Industrialised Economies where a high rate of growth was accompanied by:

A) Very high and increasing inequality.

B) Very high but declining inequality.

C) Low inequality and strong performances in terms of poverty reduction.

D) Low inequality but poor performance in poverty reduction.

 

40. Which of the following is a normative economic statement?

A) The world price of rice in October 2012 was about US$585 per tonne.

B) Increased income tax rates on high income earners benefit the poor more than they harm the rich.

C) The unemployment rate in South Korea in 2012 was about 3 per cent.

D) China is the largest and fastest growing economy in the Asia-Pacific Region.

 

 

44. Rent seeking behaviour can best be minimised by:

A) Removing government price and allocation controls that prevent markets from operating.

B) Planning more adequately for construction of housing and office buildings.

C) Relying less on markets and more on government controls.

D) Installing a non-democratic government that does not have to respond to lobby groups.

 

 

 

46. Which of the following is unlikely to be prescribed as part of a typical IMF stabilisation programme?

A) Liberalisation of foreign exchange controls.

B) Devaluation of the exchange rate.

C) Reduction in domestic interest rates.

D) Government spending cuts.

 

49. Why did the State in South Korea intervene more heavily in influencing decisions made by firms about investment than the State in Taiwan?

A) South Korean businesses were more compliant with government demands than those in Taiwan.

B) South Korea was a military dictatorship in the 1960s.

C) The development of factor markets in South Korea lagged far behind those in Taiwan, and the State sought to overcome these market failures.

D) Taiwan's leaders were all free-market advocates.

 

50. Which of the following best explains the Asian economic crisis?

A) Export-orientated industrialisation.

B) Corrupt governments.

C) Flexible exchange rates.

D) Liberalisation of financial markets.

 

 

 

53. Which of the following satisfies the definition of a newly industrialized economy?

A) Over 15 per cent of national income is saved and an HDI index of at least 0.75.

B) At least US$1000 per capita real GDP.

C) Share of manufacturing in GDP is at least 20 per cent.

D) All of the above.

 

 

 

56.  Globalisation refers to :

A) Problems such as climate change.

B) Complementarity between economies.

C) The way in which national economies are becoming increasingly interconnected with one another.

D) A modern form of colonialism.

 

 

 

 

The NIEs provide examples of economies where a high rate of growth was accompanied by:

Select one:

a. Very high and increasing inequality.

b. Very high but declining inequality.

c. Low inequality and strong performances in terms of poverty reduction.

d. Low inequality but poor performance in poverty reduction.

 

 

 

Total Factor Productivity refers to:

Select one:

a. The miracle factors in the growth of the NIEs.

b. The average productivity of all factors employed in an economy.

c. A measure of the productivity of capital and technology.

d. The returns to investment in human capital.

 

 

Which of the following provides the best definition of institutions?

Select one:

a. Institutions are the rules of the game in a society.

b. Institutions are formal governance structures.

c. Institutions are banks and other financial service providers.

d. Institutions are another name for multinational enterprises

 

 

 

Assume that the world economy consist of two countries, Australia and China. The countries produce cotton and wine. Labour is the only factor of production. The wage per hour in Australia is $9, and the hourly wage in China is $5. Per hour of labour, the countries produce the following quantities:

 

 

Australia China

Cotton (bales) 3 2

Wine (litres) 9 4

 

 

In case free trade is introduced,

Select one:

a. China's relative wage advantage does not compensate for the productivity disadvantage, so there is no trade.

b. Australia's relative productivity advantage compensates more than enough for its relative wage disadvantage, so Australia will export both goods.

c. China will export cotton and Australia will export wine.

d. Australia will export cotton, and China will export wine.

 

 

Japan's current relationship with Asia is best described as one of:

Select one:

a. Asymmetrical complementarity.

b. Complementarity.

c. Open regionalism.

d. Modern colonialism.

 

 

According to Krugman, Asian economic growth is mainly due to:

Select one:

a. Technological catch-up.

b. The fast expansion of factor inputs.

c. The growth of Total Factor Productivity.

d. High rates of investment.

 

 

Which of the following is correct?

Select one:

a. Neo-classical growth theorists generally agree that growth is caused by rapid capital accumunlation reflected in high saving and investment.

b. Neo-classical growth theorists generally agree that new ideas and new products represent the engine of long-term growth.

c. Neo-classical growth theorists generally do not agree with each other.

d. Neo-classical growth theorists generally agree that export-led growth, strong property rights and good entrepôts are vital for long term economic growth.

AccountingQueen

(3)

Status NEW Posted 12 Sep 2017 03:09 PM My Price 10.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)

• Buy Answer