The Institutional Possibilities frontier:
a. Is the Samuelson curve
b. The Bergson curve
c. A measure of production possibilities
d. Shows the choice between social losses wealth and income
e. The Lorenz Curve
f. Shows choice between order and disorder
One important similarity among the European economies is
a. the very minor role played by the state in almost all cases.
b. the unimportance of safety nets to provide income and employment security.
c. the almost total absence of subsidization by the state.
d. their common constitutional history
e. the high share of transfers for the welfare state.
An economy is statically efficient if it is operating:
a. On its production possibilities frontier
b. On its Lorenz Curve
c. On its Friedman curve
d. On its Samuelson curve.
e.All of the above.
In the Shleifer-Vishny model, producers want:
a. the highest possible prices from regulators
b. no regulation
c. low regulated prices
d. planned socialism
e. none of the above
The Industrial Revolution began in France.
a. True
b.False
The Justinian code:
a. Summarized the laws of Greece
b. Was the first example of common law
c. Codified the laws of the Roman Empire
d. Were written by Justinian himself
e. Both c and c are correct
The high cost of labor in the European labor market is partially caused by:
a. Substantial labor market regulation
b. high productivity
c. restrictions on hiring
d. a hire and fire policy
e. none of the above
The Four Tigers include
a. Hong Kong and Singapore
b. Japan and Malaysia
c. China and Japan
d. South Korea and Taiwan
e. Both a and d are correct
According to Marx, reason(s) for the inevitable collapse of capitalism is (are)
a. under production
b. a lower capita labor ratio
c. rising profits
d. class conflict
e.increasing surplus value
Philosophical foundations of the European model were provided by:
a. Adam Smith
b. David Ricardo
c. The theory of social market economy
d. Mercantilism
e. Both c and d
Factor(s) explaining China’s rapid growth
a. foreign trade zones
b. high domestic savings
c. Greater China
d. China’s export orientation
e. All of the above
Institutions are:
a. the rules of the game
b. how resources are allocated
c. illustrations of the laws of scarcity
d. organizations that operate on a non-profit basis
e. none of the above
Legal foundations of the European model are provided by common law
a. True
b. False
Prior to 1877 business could not be regulated by the states because of:
a. lack of public support
b. the fifth amendment
c. the 10th amendment
d. the due process clause
e. all of the above
Asian corporate governance is characterized by
a. family ownerhsip
b. conglomerates
c. control ownership
d. relational contracting
e. all of the above
What is unique about Chinese industrial revolution?
a. It is led by foreign workers
b. It is led by international investment
c. It is led by rural people through rural industrialization
d. It is led by reform leaders.
e. none of the above
A broad and liquid market means that
a. stock markets list a large number of shares.
b. owners can sell stock but only at a discount.
c. shareholders can sell at any time at the market price
d. insider trading laws are observed.
e. none of the above.
The major source of investment finance in the European model is
a. The stock market
b. Foreign investment
c. Reinvested profits
d. Bank loans
e. All of the above
Civil law provides business with more certainty because it is based on precedent.
a. True
b. False
“The Soviet economy is proof that, contrary to what many skeptics had earlier believed,
a socialist command economy can function and even thrive.” This statement is from:
a. Hayek
b. Mises
c. Friedman
d. Samuelson
e. None of the above
The due process (or takings) clause is found in the
a. Fifth Amendment
b. The Declaration of Independence
c. The preamble to the U.S. Constitution
d. In New Deal legislation
e. First amendment