Sample Exam Questions (MASS DUMP) Flashcards
What is the primary goal of deregulation in market liberalization?
A) increasing government control over economic activities
B) enhancing efficiency, competition and lowering consumer prices
C) increasing public debt to find industrial growth
D) strengthening state ownership of major industries
B
How do the US and UK approach industrial policy?
A) they have a highly centralized industrial policy with strong government intervention
B) they use a passive approach, allowing industries to operate with minimal regulation
C) they rely on public sector ownership to drive economic growth
D) they impose strict controls over all economic activities
B
What is a key difference between industrial policy in the US/UK and continental Europe/Japan?
A) The US/UK focus on public sector-driven growth, while Europe/Japan emphasize privatization
B) Europe/Japan have a passive industrial policy, while the US/UK have a centralized one
C) The US/UK allow industries more freedom, while Europe/Japan involve more government control
D) Europe/Japan avoid market liberalization, while the US/UK actively promote it
C
T/F: Import-Substitution Industrialization is an inward development strategy
True
T/F: the success of import substitution industrialization depends on state intervention
True
T/F: Export-oriented industrialization is an inward-oriented process
false - outward
What’s this definition?
industrial zones with special incentives set up to attract foreign investors, in which imported materials undergo some degree of processing before being (re-)exported again
EPZ
What was a key feature of South Korea’s economic policy from 1948 to 1988?
A) Heavy reliance on foreign direct investment (FDI)
B) Strong state control and planning through 5-year plans
C) Complete financial liberalization and deregulation
D) Decentralized economic decision-making
B) Strong state control and planning through 5-year plans
How did the South Korean government support chaebol?
A) By allowing free-market competition to determine their success
B) By limiting their access to finance to encourage foreign investment
C) By providing them with financial subsidies and strong government ties
D) By enforcing strict anti-monopoly policies to prevent their growth
C) By providing them with financial subsidies and strong government ties
What was one of the major changes in South Korea’s economy in the early 1980s?
A) The government increased control over financial markets
B) The financial sector became more liberalized, reducing government control
C) The country shifted toward full reliance on foreign investment
D) The chaebol system was dismantled completely
B) The financial sector became more liberalized, reducing government control
What was a key reason Singapore adopted an export-oriented, labor-intensive manufacturing strategy?
A) To compete with South Korea’s economy
B) To reduce high unemployment in a rapidly growing population
C) To discourage foreign direct investment (FDI)
D) To replace its trade-based economy with agriculture
B) To reduce high unemployment in a rapidly growing population
How did the Singaporean government attract foreign direct investment (FDI)?
A) By banning labor unions and deregulating industries
B) By offering sectorally selective incentives and creating a business-friendly environment
C) By heavily taxing foreign companies to increase government revenue
D) By focusing solely on domestic firms and rejecting foreign investment
B) By offering sectorally selective incentives and creating a business-friendly environment
What is a key feature of Singapore’s modern economic strategy?
A) Isolation from global markets to protect domestic industries
B) Encouraging firms to expand regionally while Singapore acts as a ‘control center’
C) Reducing government involvement in economic planning
D) Shifting focus to agriculture and tourism
B) Encouraging firms to expand regionally while Singapore acts as a ‘control center’
What was the focus of Taiwan’s government regarding domestic companies?
A) Encouraging only large multinational corporations
B) Focusing on small and medium-sized enterprises (SMEs) for economic development
C) Disbanding all state-owned enterprises
D) Only allowing foreign companies to operate within Taiwan
B) Focusing on small and medium-sized enterprises (SMEs) for economic development
How did Taiwan guide foreign investment in the high-tech sector?
A) By allowing foreign companies to invest freely without restrictions
B) By steering foreign firms toward high-tech industries such as semiconductors and electronics
C) By banning foreign investment in any sector
D) By encouraging foreign firms to focus on agriculture and natural resources
B) By steering foreign firms toward high-tech industries such as semiconductors and electronics
