Deng Xiao Peng

Question 1

What did Xiao Ping do when he came to power?

Answer 1

He opened up trade and attempted to attract private investment

Question 2

How has china’s increase in trade been beneficial for western countries?

Answer 2

Chinese export manufacturers have driven down the price of consumer goods, raising the ppp of western countries.

Question 3

What is special about china’s saving?

Answer 3

China has extraordinarily high rates of savings (almost 50%). Most of the savings are invested but there is a large surplus of savings despite attempts to boost consumption.

Question 4

What does the Bank of England predict will happen to Chinese stock of external assets.

Answer 4

It could rise from 5% of GDP to 35% of GDP in two decades.

Question 5

How do most firms in China operate?

Answer 5

Most companies aren’t strictly private and have close ties with the government

Question 6

What economic challenges does China face for the future?

Answer 6

• rebalance the economy, shifting from investment to consumption, from manufacturing to services and from exporting to consumption
• there is a problem of extreme environmental damage
• the build up of debt incurred in order to finance the boom in investment could lead to a financial crisis. As the economy slows there could be defaults which could drag down major leading institutions

Question 7

Which of the following measures average income in a country?
A) HDI
B) GDP per capita
C) GNI per capita in $PPP
D) Gross national income

Answer 7

C) GNI per capita in $PPP

Question 8

What does HDI measure?
A) the welfare of the average person in a country
B) the quality of life of a person in a country
C) the quality of health and education in a country
D) how far a country is from the highest level of human welfare

Answer 8

D) how far a country is from the highest level of human welfare

Question 9

In theory what should total output be equal to?

Answer 9

Total income

Question 10

Why is it hard to work out the GNI in poor countries?

Answer 10

Because many people’s income is informal and isn’t registered

Question 11

What is GNP/GNI?

Answer 11

Is is the share of GDP owned by people living in that country

Question 12

What components is HDI made up of?

Answer 12

Income per capita $PPP
Educational attainment
health status