Marx’s notion that societies go through inevitable stages of evolution is called:
a. Surplus value
b. Dialectical materialism
c. The socialist revolution
d. Primitive capitalist accumulation
e. All of the above
Soft budget constraints is an idea of:
a. Mises
b. Schumpeter
c. Kornai
d. Keynes
e. Smith
The Islamic waqf is:
a. a permanent trust
b. the founder’s instructions can be changed at will
c. no different from a western corporation
d. requires interest payments
e.both a and b are correct
The market for corporate control
a. was guaranteed by the first amendment.
b. makes sure that bad management keeps their jobs
c. makes hostile takeovers impossible
d. provides a means to replace under performing management.
e. all of the above.
Rawls argued in favor of income inequality
a. True
b. False
Hayek and Mises argued that the greater efficiency of capitalism is due to
a. its efficient generation and utilization of information.
b. its efficient generation of perfect competition.
c. its moral superiority.
d. its lack of specialization.
e. none of the above.
The Lewis two sector model
a. Explains rapid growth in Asia
b. Says that excess labor in agriculture can be used as a source of growth
c. transfers a surplus from the traditional to the modern sector
d. All of the above
e.None of the above
The creation of the European Union is an example of Hayek’s:
a. Human action
b. Human design
c. Spontaneous disorder
d. None of the above
The U.S. capital market raises investment finance mainly through
a. Bank loan syndication
b. Commercial bank lending
c. Related party transactions
d. Selling of new shares of stocks and bonds in equity markets
e. None of the above
The most important U.S. anti trust law:
a. Hampton Act
b. Rule of Reason
c. Sherman Act
d. Wagner Act
e. All of the above
Joseph Stiglitz has argued in favor of the transition policies carried out by international
institutions.
a. True
b. False
In a market socialist economy
a. Resources are allocated by the market
b. Property is owned by the state or by collectives
c. Information is centralized
d. There are no public choices
e. Both a and b
“The problem with socialism is that you eventually run out of other peopleÕs money.”
This statement is by
a. Obama
b. Margaret Thatcher
c. George Bush
d. Mao
e. Deng
The creation of the corporation is an example of Hayek’s:
a. Human action
b. Human design
c. Spontaneous disorder
d. none of the above
e. all of the above
After its reforms in the late 1970s, China followed a policy of
a. Nationalization of all enterprises
b. export of technology
c. free economic zones
d. import substitution
e. industrial planning
The Golden Parachute is an instrument that aligns shareholder interests with that of
management.
a. True
b. False
In modern China contracts are largely enforced by:
a. plans
b. the rule of law
c. common law
d. Roman law
e. state and party officials
The message that market economies will inevitably fail is associated with:
a. Marx
b. Samuelson
c. Kornai
d. Olson
e. Hayek
Contract responsibility was a reform that applied to:
a. state owned enterprises
b. the commanding heights
c. small scale industry
d. agriculture
e. None of the above
The expression ‘social market economy,” when applied to the German economic
system, refers to
a. the poor performance of the German economy after World War II.
b. the absence of national economic planning.
c. the combination of state intervention and market forces to achieve desired social
goals.
d. the rejection of private ownership.
e. none of the above.
None of the transition economies avoided the transition recession.
a. True
b. False
A remarkable feature of the Four Tigers is that economic growth occurred with:
a. no inflation
b. high inflation
c. a relatively equal distribution of income
d. an unequal distribution of income
e. none of the above
Empirical evidence seems to suggest that in industrialized economies, government
ownership has:
a. grown more rapidly than the economy has risen over time.
b. has disappeared in favor of state capitalism
c. has either stayed the same or fallen.
d. we cannot answer because we cannot measure it
e. all of the above
Spontaneous order is an idea of:
a. Keynes
b. Schumpeter
c. Marx
d. Lange
e. None of the above
Feature(s) of the Asian model
a. high rate of capital formation
b. open economy
c. export orientation
d. high domestic saving
e. all of the above
According to Olson the stationary bandit will be interested in growth and welfare:
a. True
b. False
Huntington said that future conflict will be based on:
a. economics
b. ideology
c. geography
d. differences in civilizations
e. all of the above
The Institutional Possibilities Frontier measures:
a. productive potential
b. the production possibilities frontier
c. the tradeoff between private order and dictatorial disorder
d. the dictator’s opportunity costs
e. the tradeoff between private markets and dictatorial orders.
China’s pattern of economic growth can be characterized as:
a. Slow
b. Labor growing rapidly relative to capital
c. Rising capital labor ratios
d. Rapid growth of capital
e. Both c and d
“Measures are too often decided, not according to the rules of justice and the rights of
the minor party, but by the superior force of an interested and overbearing majority”
was written by
a. Jefferson
b. Washington
c. Hamilton
d. Adams
e. Madison
The social contract is an idea from:
a. Marx
b. Ricardo
c. Smith
d. Locke
e. Hayek
China is currently a member of the WTO
a. True
b. False