General Week 6 Quiz Flashcards
What is a boom and bust cycle?
A. When prices are high, the government’s income and spending is high; when international prices drop, the government’s income and spending drops along with it.
B. Selling natural resources on global markets lead to currency inflows that cause domestic currency appreciation.
C. People enter into fiscal contracts but then leave them when they become too expensive.
D. Governments nationalize companies during booms but then want to sell them during busts.
A. When prices are high, the government’s income and spending is high; when international prices drop, the government’s income and spending drops along with it.
The fiscal contract is a contract between ________ and _________.
A. governments / international organizations
B. natural-resource exporters / the central bank
C. state-owned enterprises / their workers
D. taxpayers / the government
D. Taxpayers/ the government
What does Timmons (2005) find about the relationship between government revenue and human development?
A. States with lower tax rates have higher levels of human development.
B. States with higher tax rates have higher levels of human development.
C. Higher levels of human development causes states to lower their tax rates.
D. There is no relationship between tax rates and levels of human development.
B. States with lower tax rates have higher levels of human develoment.
What problems might the nationalization of natural resource ownership lead to?
A. Inexperienced people are appointed to important positions in resource-exporting companies for political reasons.
B. Countries will lose their enclave economies and experience too much diversification.
C. Market competition between nationalized firms may become diplomatic hostility between the two states.
D. Politicians will become more myopic.
A. Inexperienced people are appointed to important positions in resource-exporting companies for political reasons.
In the dictator game, what does the amount of money transferred by the dictator to the other player measure?
A. Altruism
B. Egoism
C. Greed
D. Rationality
A. Altruism
What can governments do to prevent the negative effects of price volatility?
A. Government can save when prices are high in order to smooth shocks when prices fall.
B. Governments can invest in other sectors of the economy.
C. Governments can improve public infrastructure.
D. Government can set aside money to “sterilize” currency appreciation.
A. Governments can save when prices are high in order to smooth shocks when prices fall.
Kendall-Taylor (2011) studies how government spending changes as oil revenue changes across countries where leaders have different time horizons. What does she find in highly stable countries?
A. Government spending decreases as oil revenue rises.
B. Government spending rises at a slower rate than oil revenue rises.
C. Government spending doesn’t change.
D. Government spending rises at a faster rate than oil revenue rises.
B. Government spending decreases as oil revenue rises.
Enclave economies are problematic because they might imply less growth in which of the following terms from the Solow Growth Model?
A. A
B. K
C. L
D. None of the Above
? unsure still
In resource rich states, why might the fiscal contract be broken?
A. The government relies less on taxes and more on resource revenues.
B. Foreign currency inflows have led to currency appreciation.
C. An enclave economy has formed, and other voters are not able to vote.
D. The government keeps requiring high taxes even though revenue from resources increases.
A. The government relies less on taxes and more on resource revenues.
Why do we use behavioral games in social sciences?
A. We can use them to determine what part of human behavior is caused by genetic inheritance and what part is caused by socialization.
B. We can use them to find counterfactuals for countries when we cannot find real-world counterfactuals.
C. We can use them to measure certain concepts by comparing how people act in these games with how economic theory would predict a rational, money-maximizing actor would act.
D. None of the above
C. We can use them to measure certain concepts by comparing how economic theory would predict a rational, money-maximizing actor would act.
According to Jones Luong and Weinthal (2010), what kind of taxation regime should we expect when there are state-owned natural resources where the state has significant control?
A. Weak tax regime
B. Hybrid tax regime
C. Strong tax regime
D. None of the above
A. Weak tax regime
What should you be concerned with related to a statistical point estimate?
A. Whether it is positive or negative
B. Whether it is large or small compare to other variables’ point estimates
C. Whether it is statistically significant
D. All of the above
D. All of the above
What is the outcome variable of interest in Habyarimana et al. (2007)?
A) Public goods provision
B) Ethnic heterogeneity
C) Economic growth
D) Democratization
A. Public good provision
What is another word for articulating institutions?
A) Centripetalism
B) Consociationalism
C) Federalism
D) Parliamentarism
B. Consociationalism
Which of the following is the puzzle that Posner identifies in his research on the Chewas and the Tumbukas?
A) The same ethnic group, divided by a border, began to self-identify as Chewas and Tumbukas.
B) Chewas and Tumbukas merged into one ethnic group on one side of a border but remained separate ethnic groups on the other side of the border.
C) Chewas and Tumbukas have adversarial relations on one side of an interstate border and non-adversarial relations on the other side of the border.
D) The border between Zambia and Malawi does not coincide with the Chewa and Tumbuka villages.
C. Chewas and Tumbukas have adversarial relations on one side of an interstate border and non-adversarial relations on the other side of the border.
