Student I - Kansas State University



Student I.D. _________________

Economics 536

Comparative Economics

Friday, February 22, 2002

11:30-12:25

E. Wayne Nafziger

Waters 350 1st One-Hour Examination

Fill out your answer card with a number 2 pencil with the best response among the options, indicating student ID number and answers for the 15 multiple-choice questions. Note that the 15 multiple-choice questions count 45 points, the first essay (#16) counts 30 points, and the last essay, 25 points.

Be sure to put your name and student ID number on the top of the page for both essay questions. Allocate your time carefully.

1. Which country has had the fastest rate of growth of income per capita during the period from the mid-nineteenth century to the last twentieth century?

a. Britain

b. France

c. Germany

d. Japan

e. the United States

2. Schnitzer emphasizes the economic dominance of the United States. In which of the following did the United States rank first among nations at the end of the 20th century?

a. child survival.

b. life expectancy

c. nonpoor population percentage

d. population

e. real GDP

3. The major institutions of capitalism include

a. income equality, price system, & private property

b. income equality, price system, & profit motive

c. income equality, private property, & profit motive

d. price system, private property, & profit motive

e. All of the above are correct

4. Communitarian capitalism refers to

a. emphasis on a group process

b. emphasis on short-term profits

c. local entrepreurship

d. government “hands-off” approach

5. Income inequality in Japan

a. is about the same as that in the United States.

b. is lower than in the United States.

c. is much higher than in the United States.

d. is slightly higher than in the United States

6. The weaknesses of the Japanese economy include

a. business scandals

b. discrimination against women

c. high internal debt

d. industrial cartels

e. All of the above are true.

7. The benefits of reunification to East Germany include

a. increased standard of living

b. job equality for women

c. productivity equal to West Germany

d. reduced unemployment

e. All of the above are true.

8. Which of the following is characteristic of the Meiji period in Japan, 1868-1913?

a. The development of a central banking system

b. The development of concentrated economic power

c. The learning of Western technology

d. A major economic role for the state

e. All of the above are true.

9. Germany’s social market economy involves which of the following features:

a. comprehensive planning

b. numerous strikes and lockouts

c. regulation of business hours

d. social ownership of property

e. use of progressive income tax

10. The dual nature of Japanese industry involves the following two sectors:

a. commercial banks and savings and loans banks

b. competitive exports and uncompetitive domestic industries

c. the sogo shosha and the zaibatsu

d. None of the above is true.

11. Japan’s ringi system refers to

11.

a. Consensus management decision-making in large corporations.

b. Decision-making within retail trade.

c. Decision-making within the household..

d. Hierarchical management decision-making.in large corporations.

12. Which of the following statements about East Germany at the end of the 1980s (through 1990) is false?

a. East Germany’s income per person was higher than West Germany’s.

b. East Germany’s living standards were the highest among Eastern bloc countries.

c. East Germany was a leader in industrial production among the Eastern bloc countries.

d. Employee per enterprise in East Germany was higher than that in West Germany. .

e. Worker productivity in East Germany was lower than in West Germany.

13. A major strength of Marxism, according to today’s Marxists, is that Marxism

a. better explains the prices of resources and commodities.

b. better explains the process of the equilibrium of the firm.

c. has more statistical studies to test theory.

d. is more realistic in depicting a world of class conflict. .

14. In the Soviet Union, in contrast to Stalin, Trotsky believed in

a. permanent revolution

b. retaining feudalism

c. revolution by the bourgeoisie

d. socialism in one country

e. None of the above.

15. According to Svetla, for Marx, communism was the stage

a. when capitalists own the means of production.

b. when the state withers away.

c. when the proletariat takes control of the state.

d. where the lord controls the manor.

e. where the upper class hold all things in common..

Student I.D. _________________

Name _________________

Essay question (30 points) – you can write on both the front and the back of this sheet.

16. How does Japanese capitalism differ from US capitalism? Discuss.

Student I.D. _________________

Name _________________

Essay question (25 points) – you can write on both the front and the back of this sheet.

17. Compare Marx’s and Weber’s explanations for the relationship between

socio-cultural values, on the one hand, and economic structure and system, on the other.

1st exam key:

1. Which country has had the fastest rate of growth of income per capita during the period from the mid-nineteenth century to the last twentieth century? (D) Japan.

2. Schnitzer emphasizes the economic dominance of the United States. In which of the following did the United States rank first among nations at the end of the 20th century? (E) real GDP

3. The major institutions of capitalism include (D) price system, private property, & profit motive

4. Communitarian capitalism refers to (A) emphasis on a group process

9. Income inequality in Japan (B) is lower than in the United States.

10. The weaknesses of the Japanese economy include (E) All of the above are true. These include business scandals, discrimination against women, high internal debt, & industrial cartels.

11. The benefits of reunification to East Germany include (A) increased standard of living

12. Which of the following is characteristic of the Meiji period in Japan, 1868-1913? (E) All of the above are true. These include the development of a central banking system, the development of concentrated economic power, the learning of Western technology, & a major economic role for the state.

13. Germany’s social market economy involves which of the following features: ( C ) regulation of business hours.

10. The dual nature of Japanese industry involves the following two sectors: (B) competitive exports and uncompetitive domestic industries

11. Japan’s ringi system refers to (A) consensus management decision-making in large corporations.

12. Which of the following statements about East Germany at the end of the 1980s (through 1990) is false? (A) East Germany’s income per person was higher than West Germany’s.

13. A major strength of Marxism, according to today’s Marxists, is that Marxism (D) is more realistic in depicting a world of class conflict. .

14. In the Soviet Union, in contrast to Stalin, Trotsky believed in

(A). permanent revolution

15. According to Svetla, for Marx, communism was the stage (B) when the state withers away.

Student I.D. _________________

Economics 536

Comparative Economics

Monday, March 11, 2002

11:30-12:25

E. Wayne Nafziger

Waters 350

2nd One-Hour Examination

Fill out your answer card with a number 2 pencil with the best response among the options, indicating student ID number and answers for the 17 multiple-choice questions. Note that the 17 multiple-choice questions count 51 points.

1. Which of the following were periods of decentralized reform during the Soviet period, 1917-91?

a. Brezhnev’s plans (1970s)

b. First Five-Year Plan (1928-1932)

c. New Economic Policy (1920s)

d. Post-World War II (early 1950s)

e. None of the above is correct.

2. Which of the following of Lenin’s ideas is Marx’s original idea, with little or no revision from Lenin?

a. The Communist party is the vanguard of the working class.

b. Economic conditions are the basic causal factors shaping society.

c. A peasant and worker alliance leads the revolution.

d. State capitalism is an interim stage between capitalism and socialism.

e. The weakest capitalist country is the first stage of world revolution.

3. In the 1930s, the Soviet Union was characterized by

a. collective farming

b. heavy industry

c. a nomenklatura elite

d. party purges

e. All of the above are true.

4. During the late 1980s, Mikhail Gorbachev’s changes included

a. economic reform and tighter discipline.

b. faster growth in agricultural output

c. increasing alcohol consumption

d. openness to international trade.

e. None of the statements above is true.

5. Polish economist Bartlomiej Kaminski argues that: “State socialism is nonreformable, if by reform we mean decentralization and reliance on the market.” Why might socialism be nonreformable? Which of the following statements is true?

a. Reform increases the power of party and state officials.

b. Reform reduces the efficiency of industrial enterprises.

c. Reform reduces opportunities for entrepreneurs.

d. Reform reduces the power of party and state officials.

e. None of the above statements is true.

6. Soviet economic performance, 1917-1937, included

a. fast industrialization

b. increased literacy

c. increased savings

d. reductions in the infant mortality rate.

e. All of the statements above are correct.

7. The nomenklatura, those having access to government positions during the Soviet period,

a. comprised most of the poor under capitalism

b. concentrated on macroeconomic performance rather than control.

c. lost position to those further down the hierarchy.

d. repositioned itself to control the new private economy.

e. restored comprehensive central planning after 1991.

8. “Shock therapy” refers to

a. an abrupt transition from planning to the market.

b. a gradual approach to creating new market institutions

c. a return to authoritarian rule.

d. instituting widespread price controls.

e. nationalization of industrial enterprises.

9. According to International Monetary Fund statistics, real GDP in Russia

a. doubled between 1990 and 2001

b. fell about 3% from 1990 to 2001.

c. fell about 30% from 1990 to 2001

d. increased about 5% from 1990 to 2001.

e. remained the same from 1990 to 2001

10. From 1990 to 2001, consumer prices in Russia

a. fell by less than 5%.

b. fell by more than 10%.

c. increased less than 50%.

d. increased more than 15-fold.

e. stayed about the same.

11. Poverty in Russia in the mid-1990s was

a. about the same as it was in the late period of the Soviet Union.

b. greater than it was in the late period of the Soviet Union.

c. less than it was in the late period of the Soviet Union.

12. The only centrally planned economy in the Soviet and Eastern bloc that relied principally on private farming for the majority of agricultural production was:

a. Bulgaria

b. the Czech Republic

c. Hungary

d. Poland

e. Russia

In 1989, the country in the Eastern bloc that had made the most progress toward a market economy was

a. Bulgaria

b. the Czech Republic

c. Hungary

d. Poland

e. Russia

14. Foreign investment in Russia was hurt by

a. default on debt in 1998.

b. former communists in the power structure

c. widespread corruption.

d. Yeltsin’s frequent turnover in the cabinet

e. All of the above are true.

15. The success of privatization was greatest in

a. Bulgaria

b. Poland

c. Russia

d. Ukraine

16. Trade virtually collapsed among communist countries from 1989 to 1992 because of

a. the disruption of trade within COMECON, the communist trading bloc

b. the reduction of trade within the former Soviet Union

c. None of the above is true.

d. Both a/ and b/ are true

17. For the Czech Republic, Hungary, and Poland, the next transitional stage is scheduled to be

a. ceasing centralized planning.

b. joining the European Union.

c. quitting COMECON.

d. rejoining the Soviet Union.

e. None of the statements above is true.

Comparative Economics

11:30-12:25

Waters 350

2nd exam key

March 11, 2002

1. C. New Economic Policy (1920s).

2. B. Economic conditions are the basic causal factors shaping the nature of society.

3. E. In the 1930s, the Soviet Union was characterized by (e.). All of the above (collective farming, heavy industry, a nomenklatura elite, and party purges) are true.

4. A. During the late 1980s, Mikhail Gorbachev’s changes included (a.) economic reform and tighter discipline.

5. D. Polish economist Bartlomiej Kaminski argues that: “State socialism is nonreformable, if by reform we mean decentralization and reliance on the market.” Why might socialism be nonreformable? . (d.) Reform reduces the power of party and state officials.

6. E. Soviet economic performance, 1917-1937, included fast industrialization, increased literacy, increased savings, reductions in the infant mortality rate (e.) All of the statements above are correct.)

7. D. The nomenklatura, those having access to government positions during the Soviet period, (d.) repositioned itself to control the new private economy.

8. A. “Shock therapy” refers to (a.) an abrupt transition from planning to the market.

9. C. According to International Monetary Fund statistics, real GDP in Russia

(c.) fell about 30% from 1990 to 2001.

10. D. From 1990 to 2001, consumer prices in Russia (d) increased more than 15-

fold.

11. B. Poverty in Russia in the mid-1990s was (b.) greater than it was in the Soviet

Union.

12. D. The only centrally planned economy in the Soviet and Eastern bloc that relied

principally on private farming for the majority of agricultural production was:

(d.) Poland.

13. C. In 1989, the country in the Eastern bloc that had made the most progress toward

a market economy was (c.) Hungary.

14. E. Foreign investment in Russia was hurt by (e.) All of the above (default on debt

in 1998, former communists in the power structure, widespread corruption, &

Yeltsin’s frequent turnover in the cabinet) are true.

15. B. The success of privatization was greatest in (b.) Poland.

16. D. 16. Trade virtually collapsed among communist countries from 1989 to 1992

because of (d) Both a/ (the disruption of trade within COMECON, the communist trading bloc and b/ (the reduction of trade within the former Soviet Union ) are true

17. B. For the Czech Republic, Hungary, and Poland, the next transitional stage is scheduled to be (b.) joining the European Union.

Student I.D. _________________

Economics 536

Comparative Economics

Wednesday, April 24, 2002

11:30-12:25

E. Wayne Nafziger

Waters 350

3rd One-Hour Examination

Fill out your answer card with a number 2 pencil, indicating student ID number and answers for the 18 multiple-choice questions. Choose the response that best answers the question. Note that the 18 multiple-choice questions count 54 points, the first essay (#19) counts 25 points, and the last essay, 21 points.

Be sure to put your name and student ID number on the top of the page for both essay questions. Allocate your time carefully.

1. According to dependency theory

a. capitalism caused an imbalance of power and development between developed and developing countries.

b. peripheral countries experience their greatest economic development when their ties to metropolis are weakest.

c. the international economy is a self-reinforcing mechanism of exploitation where developing-country poverty results from industrialized-country wealth.

d. underdevelopment in Latin America is generated by the same historical process that generated economic development in rich countries.

e. all of the above are true.

2. The theory of dependency indicates the following relationship between center and periphery:

a. The relationship between New York and Rio de Janeiro is analogous to the relationship between Mexico City and Rio de Janeiro.

b. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and Chicago.

c. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and Manhattan, Kansas.

d. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and northeastern Brazil.

e. All of the above are true.

3. According to Milanovic and Yitzhaki (from a handout),

a. the world’s middle class, those countries richer or equal to Brazil and poorer or equal to Italy, comprise 40-45% of the world’s total population.

b. the world’s middle class, those countries richer or equal to Brazil and poorer or equal to Italy, comprise 75-80% of the world’s total population.

c. the world’s poorest, those countries poorer or equal to Brazil, comprise 30-35% of the world’s population.

d. the world’s poorest, those countries poorer or equal to Brazil, comprise 75-80% of the world’s population.

e. the world’s richest, those countries richer of equal to Italy, comprise 40-45% of the world’s population.

4. According to the video, “Voices of the Poor,” poor people share

a. a sense of being powerless and voiceless, humiliation, a lack of ingenuity, and a lack of connections to resources and opportunities.

b. a sense of being powerless and voiceless, precarious livelihoods, a lack of ingenuity, and a lack of connections to resources and opportunities.

c. a sense of being powerless and voiceless, precarious livelihoods, humiliation, and a lack of connections to resources and opportunities.

d. a sense of being powerless and voiceless, precarious livelihoods, humiliation, and a lack of ingenuity.

e. precarious livelihoods, humiliation, a lack of ingenuity, and a lack of connections to resources and opportunities.

5. In 1900, Argentina’s GDP per capita was about equal to that of

a. Brazil

b. Canada

c. China

d. India

e. the United States

6. For which of the following does the numerical value of the indicator in India exceed that of the numerical value of the indicator in China?

a. adult literacy rate.

b. gini coefficient of income inequality.

c. life expectancy at birth.

d. poverty rate (percentage of the population)

e. real per capita GDP (PPP)

7. The components of the Human Development Index include the following indexes:

a. education, employment, and GDP per capita

b. education, employment, and life expectancy.

c. education, employment, and inflation.

d. education, GDP per capita, and life expectancy.

e. employment, inflation, and life expectancy.

8. China decided to reform its economy in 1977-80 for every reason except the following:

a. China’s consumption levels were falling further behind its Asian neighbors.

b. Mao Zedong, a founder of China’s communism, had died.

c. The collapse of communism in the Soviet Union.

d. The great waste and inefficiency during the Cultural Revolution

e. The incentives of wage differentials had been removed.

9. Which of the following was not a reason why agricultural reform reached its limit in China after 1984:

a. Able farm managers had little opportunity to expand cultivated areas.

b. Farm banking infrastructure was underdeveloped.

c. Farmers feared a reversal in the land tenure system.

d. Farm output fell from 1980 to 1984.

e. Opportunities in rural non-farm enterprises increased.

10. What happened to foreign investment in China after 1976?

a. Foreign investment fell after 1976.

b. Foreign investment stagnated after 1976.

c. Foreign investment by Japanese and Westerners increased substantially.

d. Foreign investment by overseas Chinese increased substantially.

e. Both c and d are correct.

11. From the period, 1950-1980 to 1980-2000, what happened to India’s annual real growth in NNP per capita and India’s life expectancy?

a. India’s annual real growth in NNP per capita fell and India’s life expectancy fell.

b. India’s annual real growth in NNP per capita fell and India’s life expectancy rose.

c. India’s annual real growth in NNP per capita rose and India’s life expectancy fell.

d. India’s annual real growth in NNP per capita rose and India’s life expectancy rose.

e. India’s annual real growth in NNP per capita remained the same and India’s life expectancy fell.

12. What happened to India’s per capita income and India’s per capita industry and mining

output from the turn of the 20th century to independence in 1947 (according to economic historians such as Uppal)?

a. India’s per capita income fell and India’s per capita industry and mining output fell.

b. India’s per capita income fell and India’s per capita industry and mining output rose.

c. India’s per capita income rose and India’s per capita industry and mining output fell.

d. India’s per capita income rose and India’s per capita industry and mining output rose.

13. According to the video on the community in northern India

a. competition between members of the village and members of a neighboring village resulted in improved management of a common property resource.

b. competition among members of the village resulted in increased efficiency in managing a common property resource.

c. cooperative efforts at managing a common property resource won over the selfish interests of a few elderly men in the village in the end.

d. cooperative efforts at managing a common property resource were undermined by the interests of powerful ruling elders in the village.

14. During the period, 1955 to 1980, the Indian government tried to influence industrial output through

a. collectivization.

b. a free-market approach.

c. a licensing system.

d. worker-managed socialism.

15. India’s system in 1970 of using quotas to award materials and inputs to firms at less than market prices resulted in

a. a black market for materials and inputs.

b. charges of arbitrary selection of firms receiving quotas

c. discouraging the entry of new firms.

d. subsidized firms awarded the materials or inputs.

e. All of the above are true.

16. Annual inflation rates in Latin America during both decades of the 1980s and 1990s were

a. 0-5%.

b. 5-10%.

c. 10-20%.

d. 20-40%.

e. more than 40%.

17. Argentina’s present crisis consists of

a. balance of payments deficit

b. high unemployment

c. peso devaluation

d. real income reductions

e. All of the above are true.

18. Chiapas state, Mexico, has

a. a lower adult literacy rate than the rest of Mexico.

b. a lower real GDP per capita than the rest of Mexico.

c. substantial grievances over income and land disparities between landowners and peasants.

d. All of the above are true.

e. Only both a & b are correct.

Student I.D. _________________

Name _________________

Essay question (25 points) – you can write on both the front and the back of this sheet.

19. Discuss the recent economic development and the extent to which economic performance was successful in any one of the following less developed economy: China, India, Argentina, Mexico, or Brazil.

Student I.D. _________________

Name _________________

Essay question (21 points) – you can write on both the front and the back of this sheet.

20. Write on a or b, depending on which country you chose for question 16.

a) If you discussed Argentina, Mexico, or Brazil in question #16, write on the following:

Discuss the efforts at industrial reform in either India or China, and assess the effectiveness of the reforms.

b) If you discussed India or China in question #16, write on the following:

President George W. Bush and a number of other politicians in the United States support expanding the North American Free Trade Area (NAFTA) to become a Free Trade Association of the Americas (FTAA), encompassing most of the major countries of the Western Hemisphere, including not only Mexico (now a member of NAFTA), but also Argentina, Brazil, Chile, and much of the rest of Latin America and the Caribbean. Discuss the prospects for the expansion of the free-trade area to include most of the rest of Latin America and the Caribbean.

4.24.2 Key to Comparative Economics exam.

Multiple-choice:

1 (one) E. According to dependency theory, (e) all of the above (capitalism caused an imbalance of power and development between developed and developing countries; peripheral countries experience their greatest economic development when their ties to metropolis are weakest; the international economy is a self-reinforcing mechanism of exploitation where developing-country poverty results from industrialized-country wealth; and underdevelopment in Latin America is generated by the same historical process that generated economic development in rich countries) are true. 2. D. The theory of dependency indicates the following relationship between center and periphery: (d) The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and northeastern Brazil. 3. D. According to Milanovic and Yitzhaki (from a handout), (d) the world’s poorest, those countries poorer or equal to Brazil, comprise 75-80% of the world’s population. 4. C. According to the video, “Voice of the Poor,” poor people share ( c ) a sense of being powerless and voiceless, precarious livelihoods, humiliation, and a lack of connections to resources and opportunities. 5. B. In 1900, Argentina’s GDP per capita was about equal to that of (b) Canada. 6. D. For which of the following does the numerical value of the indicator in India exceed that of the numerical value of the indicator in China? (d) poverty rate (percentage of the population). 7. D. The components of the Human Development Index include the following indexes: (d) education, GDP per capita, and life expectancy. 8. C. China decided to reform its economy in 1977-80 for every reason except the following: ( c ) The collapse of communism in the Soviet Union. 9. D. Which of the following was not a reason why agricultural reform reached its limit in China after 1984: (d) Able farm managers had little opportunity to expand cultivated areas; farm banking infrastructure was underdeveloped; farmers feared a reversal in the land tenure system; and opportunities in rural non-farm enterprises increased. Thus (d) Farm output fell from 1980 to 1984, is the only reason why agricultural reform had not reached its limit in China after 1984. 10. E. What happened to foreign investment in China after 1976? Foreign investment by Japanese and Westerners increased substantially ( c ); and foreign investment by overseas Chinese increased substantially (d), so (e) Both c and d are correct. 11. D.From the period, 1950-1980 to 1980-2000, what happened to India’s annual real growth in NNP per capita and India’s life expectancy? (d) India’s annual real growth in NNP per capita rose and India’s life expectancy rose. 12. B. What happened to India’s per capita income and India’s per capita industry and mining output from the turn of the 20th century to independence in 1947 (according to economic historians, such as Uppal)? (b) India’s per capita income fell and India’s per capita industry and mining output rose. 13. D. According to the video on the community in northern India (d) cooperative efforts at managing a common property resource were undermined by the interests of powerful ruling elders in the village. 14. C. During the period, 1955 to 1980, the Indian government tried to influence industrial output through (c) a licensing system. 15. E. India’s system in 1970 of using quotas to award materials and inputs to firms at less than market prices resulted in (e) All of the above (a black market for materials and inputs; charges of arbitrary selection of firms receiving quotas; discouraging the entry of new firms; subsidized firms awarded the materials or inputs.) are true. 16. E. Annual inflation rates in Latin America during both decades of the 1980s and 1990s were (e) more than 40%. 17. E. Argentina’s present crisis consists of (e) All of the above (balance of payments deficit, high unemployment, peso devaluation, and real income reductions) are true. 18. D Chiapas state, Mexico, has (d) All of the above (a lower adult literacy rates than the rest of Mexico, a lower real GDP per capita than the rest of Mexico, & substantial grievances over income and land disparities between landowners and peasants) are true.

Student I.D. _________________

Economics 536

Comparative Economics

Wednesday, April 24, 2002

11:30-12:25

E. Wayne Nafziger

Waters 350

3rd One-Hour Examination

Fill out your answer card with a number 2 pencil, indicating student ID number and answers for the 18 multiple-choice questions. Choose the response that best answers the question. Note that the 18 multiple-choice questions count 54 points, the first essay (#19) counts 25 points, and the last essay, 21 points.

Be sure to put your name and student ID number on the top of the page for both essay questions. Allocate your time carefully.

1. According to dependency theory

a. capitalism caused an imbalance of power and development between developed and developing countries.

b. peripheral countries experience their greatest economic development when their ties to metropolis are weakest.

c. the international economy is a self-reinforcing mechanism of exploitation where developing-country poverty results from industrialized-country wealth.

d. underdevelopment in Latin America is generated by the same historical process that generated economic development in rich countries.

e. all of the above are true.

2. The theory of dependency indicates the following relationship between center and periphery:

a. The relationship between New York and Rio de Janeiro is analogous to the relationship between Mexico City and Rio de Janeiro.

b. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and Chicago.

c. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and Manhattan, Kansas.

d. The relationship between New York and Rio de Janeiro is analogous to the relationship between Rio de Janeiro and northeastern Brazil.

e. All of the above are true.

3. According to Milanovic and Yitzhaki (from a handout),

a. the world’s middle class, those countries richer or equal to Brazil and poorer or equal to Italy, comprise 40-45% of the world’s total population.

b. the world’s middle class, those countries richer or equal to Brazil and poorer or equal to Italy, comprise 75-80% of the world’s total population.

c. the world’s poorest, those countries poorer or equal to Brazil, comprise 30-35% of the world’s population.

d. the world’s poorest, those countries poorer or equal to Brazil, comprise 75-80% of the world’s population.

e. the world’s richest, those countries richer of equal to Italy, comprise 40-45% of the world’s population.

4. According to the video, “Voices of the Poor,” poor people share

a. a sense of being powerless and voiceless, humiliation, a lack of ingenuity, and a lack of connections to resources and opportunities.

b. a sense of being powerless and voiceless, precarious livelihoods, a lack of ingenuity, and a lack of connections to resources and opportunities.

c. a sense of being powerless and voiceless, precarious livelihoods, humiliation, and a lack of connections to resources and opportunities.

d. a sense of being powerless and voiceless, precarious livelihoods, humiliation, and a lack of ingenuity.

e. precarious livelihoods, humiliation, a lack of ingenuity, and a lack of connections to resources and opportunities.

5. In 1900, Argentina’s GDP per capita was about equal to that of

a. Brazil

b. Canada

c. China

d. India

e. the United States

6. For which of the following does the numerical value of the indicator in India exceed that of the numerical value of the indicator in China?

a. adult literacy rate.

b. gini coefficient of income inequality.

c. life expectancy at birth.

d. poverty rate (percentage of the population)

e. real per capita GDP (PPP)

7. The components of the Human Development Index include the following indexes:

a. education, employment, and GDP per capita

b. education, employment, and life expectancy.

c. education, employment, and inflation.

d. education, GDP per capita, and life expectancy.

e. employment, inflation, and life expectancy.

8. China decided to reform its economy in 1977-80 for every reason except the following:

a. China’s consumption levels were falling further behind its Asian neighbors.

b. Mao Zedong, a founder of China’s communism, had died.

c. The collapse of communism in the Soviet Union.

d. The great waste and inefficiency during the Cultural Revolution

e. The incentives of wage differentials had been removed.

9. Which of the following was not a reason why agricultural reform reached its limit in China after 1984:

a. Able farm managers had little opportunity to expand cultivated areas.

b. Farm banking infrastructure was underdeveloped.

c. Farmers feared a reversal in the land tenure system.

d. Farm output fell from 1980 to 1984.

e. Opportunities in rural non-farm enterprises increased.

10. What happened to foreign investment in China after 1976?

a. Foreign investment fell after 1976.

b. Foreign investment stagnated after 1976.

c. Foreign investment by Japanese and Westerners increased substantially.

d. Foreign investment by overseas Chinese increased substantially.

e. Both c and d are correct.

11. From the period, 1950-1980 to 1980-2000, what happened to India’s annual real growth in NNP per capita and India’s life expectancy?

a. India’s annual real growth in NNP per capita fell and India’s life expectancy fell.

b. India’s annual real growth in NNP per capita fell and India’s life expectancy rose.

c. India’s annual real growth in NNP per capita rose and India’s life expectancy fell.

d. India’s annual real growth in NNP per capita rose and India’s life expectancy rose.

e. India’s annual real growth in NNP per capita remained the same and India’s life expectancy fell.

12. What happened to India’s per capita income and India’s per capita industry and mining

output from the turn of the 20th century to independence in 1947 (according to economic historians such as Uppal)?

a. India’s per capita income fell and India’s per capita industry and mining output fell.

b. India’s per capita income fell and India’s per capita industry and mining output rose.

c. India’s per capita income rose and India’s per capita industry and mining output fell.

d. India’s per capita income rose and India’s per capita industry and mining output rose.

13. According to the video on the community in northern India

a. competition between members of the village and members of a neighboring village resulted in improved management of a common property resource.

b. competition among members of the village resulted in increased efficiency in managing a common property resource.

c. cooperative efforts at managing a common property resource won over the selfish interests of a few elderly men in the village in the end.

d. cooperative efforts at managing a common property resource were undermined by the interests of powerful ruling elders in the village.

14. During the period, 1955 to 1980, the Indian government tried to influence industrial output through

a. collectivization.

b. a free-market approach.

c. a licensing system.

d. worker-managed socialism.

15. India’s system in 1970 of using quotas to award materials and inputs to firms at less than market prices resulted in

a. a black market for materials and inputs.

b. charges of arbitrary selection of firms receiving quotas

c. discouraging the entry of new firms.

d. subsidized firms awarded the materials or inputs.

e. All of the above are true.

16. Annual inflation rates in Latin America during both decades of the 1980s and 1990s were

a. 0-5%.

b. 5-10%.

c. 10-20%.

d. 20-40%.

e. more than 40%.

17. Argentina’s present crisis consists of

a. balance of payments deficit

b. high unemployment

c. peso devaluation

d. real income reductions

e. All of the above are true.

18. Chiapas state, Mexico, has

a. a lower adult literacy rate than the rest of Mexico.

b. a lower real GDP per capita than the rest of Mexico.

c. substantial grievances over income and land disparities between landowners and peasants.

d. All of the above are true.

e. Only both a & b are correct.

Student I.D. _________________

Name _________________

Essay question (25 points) – you can write on both the front and the back of this sheet.

19. Discuss the recent economic development and the extent to which economic performance was successful in any one of the following less developed economy: China, India, Argentina, Mexico, or Brazil.

Student I.D. _________________

Name _________________

Essay question (21 points) – you can write on both the front and the back of this sheet.

20. Write on a or b, depending on which country you chose for question 16.

c) If you discussed Argentina, Mexico, or Brazil in question #16, write on the following:

Discuss the efforts at industrial reform in either India or China, and assess the effectiveness of the reforms.

d) If you discussed India or China in question #16, write on the following:

President George W. Bush and a number of other politicians in the United States support expanding the North American Free Trade Area (NAFTA) to become a Free Trade Association of the Americas (FTAA), encompassing most of the major countries of the Western Hemisphere, including not only Mexico (now a member of NAFTA), but also Argentina, Brazil, Chile, and much of the rest of Latin America and the Caribbean. Discuss the prospects for the expansion of the free-trade area to include most of the rest of Latin America and the Caribbean.

4.24.2 Key to Comparative Economics exam.

Multiple-choice:

1 (one) E. According to dependency theory, (e) all of the above

(capitalism caused an imbalance of power and development between

developed and developing countries; peripheral countries experience

their greatest economic development when their ties to metropolis are

weakest; the international economy is a self-reinforcing mechanism of

exploitation where developing-country poverty results from

industrialized-country wealth; and underdevelopment in Latin America

is generated by the same historical process that generated economic

development in rich countries) are true. 2. D. The theory of

dependency indicates the following relationship between center and

periphery: (d) The relationship between New York and Rio de Janeiro is

analogous to the relationship between Rio de Janeiro and northeastern

Brazil. 3. D. According to Milanovic and Yitzhaki (from a handout),

(d) the world's poorest, those countries poorer or equal to Brazil,

comprise 75-80% of the world's population. 4. C. According to the

video, "Voice of the Poor," poor people share ( c ) a sense of being

powerless and voiceless, precarious livelihoods, humiliation, and a

lack of connections to resources and opportunities. 5. B. In 1900,

Argentina's GDP per capita was about equal to that of (b) Canada. 6.

D. For which of the following does the numerical value of the

indicator in India exceed that of the numerical value of the indicator

in China? (d) poverty rate (percentage of the population). 7. D. The

components of the Human Development Index include the following

indexes: (d) education, GDP per capita, and life expectancy. 8. C.

China decided to reform its economy in 1977-80 for every reason except

the following: ( c ) The collapse of communism in the Soviet Union. 9.

D. Which of the following was not a reason why agricultural reform

reached its limit in China after 1984: (d) Able farm managers had

little opportunity to expand cultivated areas; farm banking

infrastructure was underdeveloped; farmers feared a reversal in the

land tenure system; and opportunities in rural non-farm enterprises

increased. Thus (d) Farm output fell from 1980 to 1984, is the only

reason why agricultural reform had not reached its limit in China

after 1984. 10. E. What happened to foreign investment in China after

1976? Foreign investment by Japanese and Westerners increased

substantially ( c ); and foreign investment by overseas Chinese

increased substantially (d), so (e) Both c and d are correct. 11.

D.From the period, 1950-1980 to 1980-2000, what happened to India's

annual real growth in NNP per capita and India's life expectancy? (d)

India's annual real growth in NNP per capita rose and India's life

expectancy rose. 12. B. What happened to India's per capita income and

India's per capita industry and mining output from the turn of the

20th century to independence in 1947 (according to economic

historians, such as Uppal)? (b) India's per capita income fell and

India's per capita industry and mining output rose. 13. D. According

to the video on the community in northern India (d) cooperative

efforts at managing a common property resource were undermined by the

interests of powerful ruling elders in the village. 14. C. During the

period, 1955 to 1980, the Indian government tried to influence

industrial output through (c) a licensing system. 15. E. India's

system in 1970 of using quotas to award materials and inputs to firms

at less than market prices resulted in (e) All of the above (a black

market for materials and inputs; charges of arbitrary selection of

firms receiving quotas; discouraging the entry of new firms;

subsidized firms awarded the materials or inputs.) are true. 16. E.

Annual inflation rates in Latin America during both decades of the

1980s and 1990s were (e) more than 40%. 17. E. Argentina's present

crisis consists of (e) All of the above (balance of payments deficit,

high unemployment, peso devaluation, and real income reductions) are

true. 18. D Chiapas state, Mexico, has (d) All of the above (a lower

adult literacy rates than the rest of Mexico, a lower real GDP per

capita than the rest of Mexico, & substantial grievances over income

and land disparities between landowners and peasants) are true.

Student I.D. _________________

Economics 536

Comparative Economics

Friday, May 3, 2002

12:10-12:25

E. Wayne Nafziger

Waters 350

Fill out your answer card with a number 2 pencil, indicating student ID number and answers for the 7 multiple-choice questions. Choose the response that best answers the question. Note that the 7 multiple-choice questions count 21 points, and the “minute paper” 5 points.

Be sure to put your name and student ID number on the top of the page for the “minute paper.” Allocate your time carefully.

1. Brazil’s Gini index of inequality is 0.57. Assume that any Gini index of inequality more than 0.45 is high. In South Africa inequality was

a. high under apartheid (before 1994) and high under majority rule (since 1994)

b. high under apartheid (before 1994) and low under majority rule (since 1994)

c. low under apartheid (before 1994) and high under majority rule (since 1994)

d. low under apartheid (before 1994) and low under majority rule (since 1994)

2. Since the early 1960s, food production per capita

a. has fallen in Asia and fallen in sub-Saharan Africa.

b. has fallen in Asia and increased in sub-Saharan Africa.

c. has increased in Asia and fallen in sub-Saharan Africa.

d. has increased in Asia and increased in sub-Saharan Africa.

e. has remained about the same in Asia and increased in sub-Saharan Africa.

3. The World Bank and other international agencies working in Africa estimate that in southern Africa

a. life expectancy without AIDS is generally 40-50 years, while life expectancy with AIDS (by 2010) is estimated to be about 30-40 years.

b. life expectancy without AIDS is generally 50-60 years, while life expectancy with AIDS (by 2010) is estimated to be about 35-50 years.

c. life expectancy without AIDS is generally 60-70 years, while life expectancy with AIDS (by 2010) is estimated to be about 35-50 years.

d. life expectancy without AIDS is generally 60-70 years, while life expectancy with AIDS (by 2010) is estimated to be about 55-65 years.

e. life expectancy without AIDS is generally 70-80 years, while life expectancy with AIDS (by 2010) is estimated to be about 60-70 years.

4. The region of the world with the highest incidence of malaria is

a. central Africa

b. northern Africa

c. southern Africa

d. northern America

e. east Asia

5. The world’s expenditures and training of scientists in disease research is disproportionately concentrated on which of the following disease(s)

a. cancer

b. malaria

c. tuberculosis

d. Both a & b are correct.

e. Both b & c are correct.

6. Nigeria’s major export (in revenue) today is

a. cocoa

b. coffee

c. cotton

d. oil

e. palm products

7. Deaths from conflict as a percentage of the total population is highest in

a. Africa

b. Central America

c. East Asia

d. South America

e. Western Europe

Student I.D. _________________

Name _________________

(5 points) From your reading of Schnitzer, chapter 15, what important question would you like to ask or what important question remains unanswered for you?

Key: 5.3.2 – Comparative economics (Econ 536) exam

Multiple-choice:

1. A. Brazil’s Gini index of inequality is 0.57. Assume that any Gini index of inequality more than 0.45 is high. In South Africa inequality was (a) high under apartheid (before 1994) and high under majority rule (since 1994). 2. C. Since the early 1960s, food production per capita (c) has increased in Asia and fallen in sub-Saharan Africa. 3. C. 3. The World Bank and other international agencies working in Africa estimate that in southern Africa ( c ) life expectancy without AIDS is generally 60-70 years, while life expectancy with AIDS (by 2010) is estimated to be about 35-50 years. 4. A. The region of the world with the highest incidence of malaria is (a) central Africa. 5. A. The world’s expenditures and training of scientists in disease research is disproportionately concentrated on which of the following disease(s) (a) cancer. 6. D. Nigeria’s major export (in revenue) today is (d) oil. 7. A. Deaths from conflict as a percentage of the total population is highest in (a) Africa.

Student I.D. _________________

Economics 536

Comparative Economics

Final Exam

Friday, May 17, 2002

11:50-1:40

E. Wayne Nafziger

Waters 350

Fill out your answer card with a number 2 pencil, indicating student ID number and answers for the 31 multiple-choice questions. Choose the response that best answers the question. Note that each of the 31 multiple-choice questions counts 4 points (totaling 124 points), and essay question #32 counts 26 points, and essays #33 and #34 each 25 points (for an essay total of 76 points).

Be sure to put your name and student ID number on the top of the page for both essay questions. Allocate your time carefully.

1. Which is the correct ranking (1st listed the highest total, 2nd listed 2nd highest, and so forth) of the following five countries: Japan, Nigeria, South Africa, South Korea, and the United States, according to gross national income per capita:

a. the United States, Japan, Nigeria, South Korea, South Africa.

b. the United States, Japan, South Korea, South Africa, Nigeria.

c. the United States, Japan, South Africa, Nigeria, South Korea.

d. the United States, South Korea, Japan, South Africa, Nigeria.

e. the United States, South Korea, South Africa, Japan, Nigeria.

2. Since 1968, the world’s total fertility rate has

a. fallen by less than 5%.

b. fallen by more than 5%.

c. risen by less than 5%.

d. risen by more than 5%.

e. stayed the same.

3. Which is the correct ranking (1st listed the highest total, 2nd listed 2nd highest, and so forth) of the following five countries: Japan, Nigeria, South Africa, South Korea, and the United States, according to life expectancy:

a. Japan, the United States, Argentina, Brazil, Nigeria.

b. Japan, the United States, Nigeria, Argentina, Brazil.

c. the United States, Japan, Argentina, Brazil, Nigeria.

d. the United States, Japan, Nigeria, Argentina, Brazil.

e. the United States, Japan, Nigeria, Brazil, Argentina.

4. Percentiles range from 0 for the bottom of the distribution to 50 for the median of the distribution to 100 for the top of the distribution. A person with the average United States real per capita income ranks about

a. in the 50th percentile of the world’s income distribution.

b. in the 60th percentile of the world’s income distribution.

c. in the 70th percentile of the world’s income distribution.

d. in the 80th percentile of the world’s income distribution.

e. in the 90th percentile of the world’s income distribution.

5. Schnitzer calls the 20th century the American century because throughout that century the United States

a. had the fastest economic growth in the world.

b. had the largest economy in world.

c. had the highest standard of living in the world.

d. had the largest population in the world.

e. None of the above statements are correct.

6. Which of the following is not necessarily associated with capitalism?

a. Consumer sovereignty

b. Military spending

c. Price system

d. Private property

e. Profit motive

7. Which of the following countries has the highest Gini coefficient (which measures income concentration or income inequality)?

a. Canada.

b. Germany.

c. Japan.

d. United Kingdom

e. United States

8. Among today’s rich capitalist economies, Japan’s real growth of GNP per capita ranks

a. among the fastest from 1868 to 1937, among the fastest from 1950 to 1975, and among the fastest from 1990 to the present.

b. among the fastest from 1868 to 1937, among the fastest from 1950 to 1975, and among the slowest from 1990 to the present.

c. among the fastest from 1868 to 1937, among the slowest from 1950 to 1975, and among the fastest from 1990 to the present.

d. among the fastest from 1868 to 1937, among the slowest from 1950 to 1975, and among the slowest from 1990 to the present.

e. among the slowest from 1868 to 1937, among the slowest from 1950 to 1975, and among the fastest from 1990 to the present.

9. For Max Weber, which of the following was not part of the Protestant ethic?

a. Asceticism in a secular vocation.

b. Materialism.

c. Restriction of conspicuous consumption.

d. Systematic in capitalist enterprise.

e. Work as a calling.

10. Which of the following is not a strength of the Japanese economy?

a. consensus management.

b. high standards of education.

c. individualism.

d. loyalty to the enterprise.

e. technological borrowing.

11. Which of the following is not a weakness of the Japanese economy?

a. Banks’ high bad debt ratio.

b. High interlocking shares.

c. Industrial cartelization.

d. Low rate of savings.

e. Uncompetitive domestic sector.

12. In the 1980s, East Germany’s industry

a. was among the least productive among Eastern bloc countries but of high productivity compared to West Germany’s industry.

b. was among the most productive among Eastern bloc countries and of high productivity compared to West Germany’s industry.

c. was among the least productive among Eastern bloc countries and of low productivity compared to West Germany’s industry.

d. was among the most productive among Eastern bloc countries but of low productivity compared to West Germany’s industry.

e. was average among Eastern bloc countries and of low productivity compared to West Germany’s industry.

13. The European Union’s common currency, the euro, is often compared to what had been the German currency, the Deutsche mark. Since the euro’s inception in 1999 (for accounting balances; euro coins and bills were initiated in 2002), what has happened to the euro?

a. The euro has remained stronger relative to the US dollar than the Deutsche mark was just before 1999.

b. The euro has remained the same relative to the US dollar as the Deutsche mark was just before 1999.

c. The euro has remained weaker relative to the US dollar than the Deutsche mark was just before 1999.

d. The euro started out stronger relative to the US dollar than the Deutsche mark but has since become weaker relative to the US dollar.

14. Compared to German and Japanese capitalisms, US capitalism

a. has a high degree of intervention by the state, government spending as a percentage of GDP lower than the Germans, and government spending as a percentage of GDP within a few percentage points of the Japanese.

b. has a high degree of intervention by the state, government spending as a percentage of GDP lower than the Germans, and government spending as a percentage of GDP substantially lower than the Japanese.

c. has a low degree of intervention by the state, government spending as a percentage of GDP lower than the Germans, and government spending as a percentage of GDP within a few percentage points of the Japanese.

d. has a low degree of intervention by the state, government spending as a percentage of GDP lower than the Germans, and government spending as a percentage of GDP substantially lower than the Japanese.

e. has a low degree of intervention by the state, government spending as a percentage of GDP higher than the Germans, and government spending as a percentage of GDP within a few percentage points of the Japanese.

15. After unification of East Germany with West Germany, East Germany’s

a. productivity reached the level of that of West Germany’s.

b. small firms reduced their mortality rate.

c. unemployment rate rose.

d. wages rose to the level of West Germany’s.

e. women improved their job prospects relative to men.

16. India’s domestic price level relative to the world price level

a. is about one-fourth, meaning that purchasing power in India is about four times international purchasing power.

b. is about three-fourths, meaning that purchasing power in India is about one and one-third times international purchasing power.

c. is about one, meaning that purchasing power in India is about the same as international purchasing power.

d. is about two, meaning that purchasing power in India is about one-half international purchasing power.

e. is about four, meaning that purchasing power in India is about one-fourth international purchasing power.

17. Which of the following is the share of the world’s income/expenditures of those persons with the bottom and top income/expenditures, according to Milanovic?

a. The bottom 10 percent of the world’s population have about ½% of the world’s income/expenditures while the top 10 percent of the world’s population has about 70% of the world’s income/expenditures.

b. The bottom 10 percent of the world’s population have about 1% of the world’s income/expenditures while the top 10 percent of the world’s population has about 50% of the world’s income/expenditures.

c. The bottom 10 percent of the world’s population have about 2.5% of the world’s income/expenditures while the top 10 percent of the world’s population has about 40% of the world’s income/expenditures.

d. The bottom 10 percent of the world’s population have about 4% of the world’s income/expenditures while the top 10 percent of the world’s population has about 30% of the world’s income/expenditures.

e. The bottom 10 percent of the world’s population have about 6% of the world’s income/expenditures while the top 10 percent of the world’s population has about 25% of the world’s income/expenditures.

18. The average per capita income (in purchasing power parity dollars) of the USA relative to the average per capita income (in purchasing power parity dollars) of urban India is

a. 1.

b. 2-3.

c. 5-6.

d. 12-20

e. 40-60

19. For Karl Marx, the interaction

a. among politics and the social consciousness shapes the economic structure of society.

b. among politics, culture, and religion shapes the economic structure of society.

c. between forces and relations of production shapes politics, culture, and religion.

d. between institutions and the economic structure of society shapes the relations of production.

e. between law and institutions shapes the economic base of society.

20. Which of the following is not correct? During the New Economic Policy,

1921-28, the Soviet Union

a. allowed fuel and metallurgy to buy their own supplies.

b. denationalized small industry.

c. legalized private trade.

d. levied a proportional farm tax.

e. put the commanding heights under the control of the state.

21. The Soviet Union’s leader Mikhail Gorbachev

a. abolished the Communist party.

b. abolished mandatory output targets.

c. decontrolled prices.

d. eliminated enterprise monopolies.

e. implemented free trade between republics.

22. From the fall of the Soviet Union through today

a. real GDP fell, while consumer prices increased 5-10 fold.

b. real GDP fell, while consumer prices increased several hundred fold

c. real GDP fell, while consumer prices increased several thousand fold.

d. real GDP rose, while consumer prices increased 5-10 fold.

e. real GDP rose, while consumer prices increased several hundred fold.

23. In Russia, the nomenklatura

a. was a self-perpetuating elite

b. was created by Stalin.

c. was positioned to lead post-1991 capitalism.

d. All of the above statements are correct.

e. None of the above statements are correct.

24. The world’s highest poverty rates are in which of the following two world regions?

a. East Asia and Latin America.

b. East Asia and South Asia.

c. Latin America and the Middle East.

d. Sub-Saharan Africa and the Middle East.

e. Sub-Saharan Africa and South Asia.

25. From 1960 to 1975, India’s industrial economy has not been characterized by

a. detailed physical controls in heavy industry.

b. free entry and exit for firms.

c. licensing for the private sector.

d. low savings in the public sector.

e. the state controlling the commanding heights.

26. Which of the following have been reasons for Africa’s food crisis?

a. Inadequate infrastructure.

b. Industrial bias in state spending.

c. Price distortions in agriculture.

d. All of the above are correct.

e. None of the above are correct.

27. In the 21 years before Mao Zedong’s death in 1976, China’s economy consisted primarily of

a. collective farms and large private enterprises.

b. collective farms and small private enterprises.

c. collective farms and state-owned industrial enterprises.

d. family farms and small private enterprises.

e. family farms and state-owned industrial enterprises.

28. Nigeria’s stagnation or decline of real GDP per capita from 1983 to 1997 was accompanied by

a. colonial rule.

b. corrupt civilian rule.

c. dependence on agricultural exports.

d. large external debt

e. low tariffs.

29. From 1966 to 1994, South Africa was ruled by a(n)

a. apartheid government.

b. colonial government.

c. communist government

d. democratic government.

e. revolutionary government.

30. In Mexico, the Institutional Revolutionary Party (PRI in Spanish) has been the ruling party from

a. 1929 to 2000.

b. 1929 to the present.

c. 1994 to 2000.

d. 1994 to the present.

e. None of the above statements are correct.

31. The Western country with the highest per capita carbon dioxide emission is

a. Canada.

b. France.

c. Norway.

d. the United Kingdom.

e. the United States.

Student I.D. _________________

Name _________________

Essay question (26 points) – you can write on both the front and the back of this sheet.

31. Choose one country (other than the United States, Japan, Germany, or Russia/Soviet Union) and describe, analyze, and evaluate its economic strategy and economic development in the last 30 to 50 years. Discuss.

Student I.D. _________________

Name _________________

Essay question (25 points) – you can write on both the front and the back of this sheet.

32. What lessons can other economies learn from the experience of the Soviet Union’s economy, 1917 to 1991? Discuss.

Student I.D. _________________

Name _________________

Essay question (25 points) – you can write on both the front and the back of this sheet.

33. Discuss whether the world generally benefits from the formation of a regional trade organization (such as a free-trade area, customs union, or economic union). Use one particular regional trade organization to illustrate your contention.

Key to final exam:

1. B. Which is the correct ranking (1st listed the highest total, 2nd

listed 2nd highest, and so forth) of the following five countries:

Japan, Nigeria, South Africa, South Korea, and the United

States, according to gross national income per capita: (b) the

United States, Japan, South Korea, South Africa, Nigeria. 2. B. Since

1968, the world’s total fertility rate has (b) fallen by more than 5%. 3. A.

Which is the correct ranking (1st listed the highest total, 2nd listed

2nd highest, and so forth) of the following five countries: Japan,

Nigeria, South Africa, South Korea, and the United States,

according to life expectancy: (a) Japan, the United States,

Argentina, Brazil, Nigeria. 4. E. Percentiles range from 0 for the

bottom of the distribution to 50 for the median of the distribution

to 100 for the top of the distribution. A person with the average

United States real per capita income ranks about (e) in the 90th

percentile of the world’s income distribution. 5. B. Schnitzer

calls the 20th century the American century because throughout

that century the United States (b) had the largest economy in

world. 6. B. Which of the following is not necessarily associated with

capitalism?

Consumer sovereignty, price system, private property, and profit motive

are associated with capitalism. Thus, (b) Military spending, associated

with both capitalism and other systems, is the answer. 7. E. Which of

the following countries has the highest Gini coefficient (which

measures income concentration or income inequality)? (e)

United States. 8. B. Among today’s rich capitalist economies,

Japan’s real growth of GNP per capita ranks (b) Among the

fastest from 1868 to 1937, among the fastest from 1950 to

1975, and among the slowest from 1990 to the present. 9. B.

For Max Weber, which of the following was not part of the

Protestant ethic? (b) Materialism. 10. C. Which of the following

is not a strength of the Japanese economy? ( c ) individualism.

11. D. Which of the following is not a weakness of the Japanese

economy? (d) Low rate of savings. 12. D. In the 1980s, East

Germany’s industry (d) was among the most productive among

Eastern bloc countries but of low productivity compared to

West Germany’s industry. 13. C. The European Union’s

common currency, the euro, is often compared to what had

been the German currency, the Deutsche mark. Since the euro’s

inception in 1999 (for accounting balances; euro coins and bills

were initiated in 2002), what has happened to the euro? ( c )

The euro has remained weaker relative to the US dollar than the

Deutsche mark was just before 1999. 14. C. Compared to

German and Japanese capitalisms, US capitalism ( c ) has a low

degree of intervention by the state, government spending as a

percentage of GDP lower than the Germans, and government

spending as a percentage of GDP within a few percentage points

of the Japanese. 15. C. After unification of East Germany with

West Germany, East Germany’s ( c ) unemployment rate rose.

16. A. India’s domestic price level relative to the world price

level (a) is about one-fourth, meaning that purchasing power in

India is about four times international purchasing power. 17. B.

Which of the following is the share of the world’s

income/expenditures of those persons with the bottom and top

income/expenditures, according to Milanovic? (b) The bottom

10 percent of the world’s population have about 1% of the

world’s income/expenditures while the top 10 percent of the

world’s population has about 50% of the world’s

income/expenditures. 18. D. The average per capita income (in

purchasing power parity dollars) of the USA relative to the

average per capita income (in purchasing power parity dollars)

of urban India is (d) 12-20. 19. C. For Karl Marx, the

interaction ( c ) between forces and relations of production

shapes politics, culture, and religion. 20. A. 20. Which of the

following is not correct? During the New Economic Policy,

1921-28, the Soviet Union (a) allowed fuel and metallurgy to

buy their own supplies. 21. B. The Soviet Union’s leader

Mikhail Gorbachev (b) abolished mandatory output targets. 22.

C.

From the fall of the Soviet Union through today ( c ) real GDP

fell, while consumer prices increased several thousand fold. 23.

D. In Russia, the nomenklatura (d) All of the above statements

(was a self-perpetuating elite, was created by Stalin, and was

positioned to lead post-1991 capitalism) are correct. 24. E. The

world’s highest poverty rates are in which of the following two

world regions? (e) Sub-Saharan Africa and South Asia. 25. B.

From 1960 to 1980, India’s industrial economy has not been

characterized by (b) free entry and exit for firms. India’s

industrial economy has not been characterized by. detailed

physical controls in heavy industry, licensing for the private

sector, low savings in the public sector, and the state controlling

the commanding heights. 26. D. Which of the following have

been reasons for Africa’s food crisis? (d) All of the above

(inadequate infrastructure, industrial bias in state spending, and

price distortions in agriculture) are correct. 27. C. In the 21

years before Mao Zedong’s death in 1976, China’s economy

consisted primarily of ( c ) collective farms and state-owned

industrial enterprises. 28. D. Nigeria’s stagnation or decline of

real GDP per capita from 1983 to 1997 was accompanied by

(d) large external debt. 29. A. From 1966 to 1994, South

Africa was ruled by a(n) (a) apartheid government. 30. A. In

Mexico, the Institutional Revolutionary Party (PRI in Spanish)

has been the ruling party from (a) 1929 to 2000. 31. E. The

Western country with the highest per capita carbon dioxide

emission is (e) the United States.

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