The most commonly accepted cause of the European Crisis is:
a. Fiscal profligacy
b. Too little welfare spending
c. Unemployment
d. Current account deficit
France uses civil law
a. True
b. False
The major source of financing in the Anglo Saxon model is:
a. Securities markets
b. Secondary market financing
c. The sale of treasury bonds
d. Bank financing
e. None of the above
The principal author of the U.S. Constitution
a. Hamilton
b. Washington
c. Jefferson
d. Madison
e. None of the above
One of the early founders of the European welfare state
a. Marx
b. Kaiser Wilhelm
c. DeGaule
d. Bismarck
e. Erhardt
In order to have a principal agent problem, there always must be
a. A market economy
b. A dictator and a subordinate
c. The principal has more information than the agent
d. The principal and agent have different goals
e. Both c and d are correct
All the transition economies suffered a transition recession:
a. True
b. False
Kornai argued that transition required the creation of democracy
a. True
b. False
Prior to its reform, India followed a policy of:
a. extensive growth
b. import substitution
c. export promotion
d. the Kuznets curve
e. none of the above
The first chief justice of the supreme court was
a. Locke
b. Marshall
c. Hobbes
d. Jefferson
e. John Adams
China combined economic growth with:
a. low savings rates
b. large increases in income inequality
c. slow growth of agriculture
d. more rapid growth of the state sector
e. none of the above
In order to have a principal agent problem, there must be
a. A market economy
b. A dictator and a subordinate
c. Asymmetric information
d. a situation in which the principal and agent have the same objective
e. Both c and d are correct
The United States has the most progressive income tax system among the industrialized
countries
a. True
b. False
The “Four Tigers” are frequently associated with one another because all have used
a. command-type planning to promote rapid economic growth.
b. foreign trade to promote industrialization.
c. high rates of saving and investment.
d. none of the above.
e. b and c are correct
Public enterprise is less prevalent in Europe than in the United States
a. True
b. False
Corporate ownership in Asia is characterized by:
a. strong minority shareholder rights
b. widely held ownership
c. IPOs
d. Hostile takeovers
e. family ownership
In the European model the stakeholder plays a less prominent role than in the
Anglo-Saxon model
a. True
b. False
Which economy tends to use loyalty as a motivating factor?
a. China
b. India
c. USSR
d. Japan
e.all of the above
If we compare common and civil law, we find that:
a. Common law places more emphasis on private property rights
b. Common law is less rigid
c. Common law can adapt to new circumstances better
d. a, b, and c are correct
e. None of the above
China: a farmer could not go to work and live in a city without city Hukou
a. True
b. False
There is no correlation between happiness and per capita income
a. True
b. False
The decision of Russia to embark on perestroika reforms came under:
a. Yeltsin
b. Putin
c. Brezhnev
d. Gorbachev
e. none of the above
Workers in urban work units work for
a. start ups
b. state owned enterprises
c. the government
d. a, b and c are correct
e. none of the above
“It is only insofar as some sort of order arises as a result of individual action but
without being designed by any individual that a problem is raised which demands a
theoretical explanation.” This statement is from:
a. Samuelson
b. Friedman
c. Stiglitz
d. Hayek
e. Marx
What is wearing a red hat?
a. A communist party registeration
b. Use the name of the state institution to cover the private enterprises
c. It is a collectively owned by villagers
d. It is that the economy of China has trouble providing for all the needs of the people
e. All of the above
The Asian economies raise investment finance through
a. foreign direct investment
b. loans
c. IPOs
d. all of the above
e. both a and b are correct
Which of the following policies, in effect, destroyed China’s central governmental
institutions
a. the great leap
b. the cultural revolution
c. the Deng reform
d. the land reform
e. all of the above
The Great Divergence refers to:
a. The collapse of communism
b. AsiaÕs rise after World War II
c. ChinaÕs rapid growth after MaoÕs death
d. The decline of Asia after the industrial revolution
e. none of the above
U.S. stock markets are based on the principle of
a. merit recommendations.
b. dominance of the SEC.
c. full disclosure subject to standard accounting procedures.
d. disclosure only of related party transaction.
e. all of the above.
Codetermination refers to
a. allowing worker participation but only at the shop floor.
b. allowing representatives of labor on management boards.
c. turning trade unions into company unions.
d. the alliance between government and labor unions in Germany.
e. all of the above.
One reason to expect higher growth under planned socialism
a. material balance planning
b. the dictator’s use of coercion
c. growth based pricing policy
d. the dictator worries about consumption
e. the dictator can set a high investment rate
The idea of a Leviathan state was promoted by
a. Hobbes
b. Smith
c. Ricardo
d. Mises
e. Hayek
The country known for its use of industrial policy
a. the United States
b. Japan
c. Hong Kong
d. Singapore
e. All of the above
Among industrialized economies, taxes as a percentage of GDP are lowest in:
a. The Four Tigers
b. Germany and France
c. The United States
d. Australia and New Zealand
e. None of the above
The richest EU country in terms of GPD per capita is:
a. Germany
b. Netherlands
c. Denmark
d. Luxembourg