Question 1

In the view of dependency theory, the countries of the center are viewed as the _____.

Accepted Answer

A)  victim of poverty 
B)  solution to the problem of poverty 
C)  cause of the problem of poverty 
D)  center of agricultural problems 
E)  none of the above 
A)  victim of poverty 
B)  solution to the problem of poverty 
C)  cause of the problem of poverty 
D)  center of agricultural problems 
E)  none of the above

Question 2

Which Latin American country has had some success with SOEs, specifically in the oil and aeronautics industries?

Accepted Answer

A)  Brazil 
B)  Peru 
C)  Columbia 
D)  Argentina 
E)  Mexico 
A)  Brazil 
B)  Peru 
C)  Columbia 
D)  Argentina 
E)  Mexico

Question 3

What two phenomena are related to financial repression in Latin America?

Accepted Answer

A)  government spending, comparative advantage 
B)  budget surpluses, comparative disadvantage 
C)  capital flight, currency substitution 
D)  inflation, budget deficits 
E)  capital flight, declining terms of trade 
A)  government spending, comparative advantage 
B)  budget surpluses, comparative disadvantage 
C)  capital flight, currency substitution 
D)  inflation, budget deficits 
E)  capital flight, declining terms of trade

Question 4

The argument for ISI was rooted in what idea?

Accepted Answer

A)  dependency theory 
B)  fiscal policy 
C)  monetary policy 
D)  financial repression 
E)  currency substitution 
A)  dependency theory 
B)  fiscal policy 
C)  monetary policy 
D)  financial repression 
E)  currency substitution

Question 5

What are the terms of trade? Describe the argument that if the terms of trade are declining, then a country should import less. How did this argument relate to the development of ISI?

Accepted Answer

The terms of trade refer to the ratio at

Question 6

Under ISI, Latin American governments attempted to invest in ______ industries.

Accepted Answer

A)  labor intensive 
B)  capital intensive 
C)  commodity intensive 
D)  capital non-intensive 
E)  oil based 
A)  labor intensive 
B)  capital intensive 
C)  commodity intensive 
D)  capital non-intensive 
E)  oil based

Question 7

Which of these policies is not associated with ISI?

Accepted Answer

A)  the protection of domestic industry 
B)  artificially low exchange rates 
C)  availability of cheap credit 
D)  creation of SOEs 
E)  liberal trade policy 
A)  the protection of domestic industry 
B)  artificially low exchange rates 
C)  availability of cheap credit 
D)  creation of SOEs 
E)  liberal trade policy

Question 8

List and briefly describe the results of ISI in Latin America.

Accepted Answer

The Import Substitution Industrializatio

Question 9

Government policies that influence the savings and investment decisions of individuals and financial institutions is known as:

Accepted Answer

A)  fiscal policy 
B)  financial repression 
C)  monetary policy 
D)  currency substitution 
E)  industrial policy 
A)  fiscal policy 
B)  financial repression 
C)  monetary policy 
D)  currency substitution 
E)  industrial policy

Question 10

Exchange rate shocks are accompanied by ____ rates of inflation and ____ real GDP.

Accepted Answer

A)  low, low 
B)  low, high 
C)  high, high 
D)  high, low 
E)  low, moderate 
A)  low, low 
B)  low, high 
C)  high, high 
D)  high, low 
E)  low, moderate

Question 11

List and briefly describe the collection of policies that made ISI "work".

Accepted Answer

The collection of policies that made ISI

Question 12

The argument for ISI states that the traditional theory of _____ does not work for developing countries?

Accepted Answer

A)  comparative advantage 
B)  dependence theory 
C)  structuralist economics 
D)  balance of payments 
E)  financial repression 
A)  comparative advantage 
B)  dependence theory 
C)  structuralist economics 
D)  balance of payments 
E)  financial repression

Question 13

Which of the following was used to support ISI industries?

Accepted Answer

A)  high tariffs 
B)  quotas 
C)  targeted lending 
D)  all of the above 
E)  none of the above 
A)  high tariffs 
B)  quotas 
C)  targeted lending 
D)  all of the above 
E)  none of the above

Question 14

Center vs. Periphery is associated with:

Accepted Answer

A)  commodity exports. 
B)  dependency theory. 
C)  imports of manufactured goods. 
D)  none of the above 
E)  all of the above 
A)  commodity exports. 
B)  dependency theory. 
C)  imports of manufactured goods. 
D)  none of the above 
E)  all of the above

Question 15

What global event contributed to the end of ISI?

Accepted Answer

A)  the Great Depression 
B)  WW II 
C)  the oil shocks of the 1970s 
D)  the Lost Decade 
E)  the Cold War 
A)  the Great Depression 
B)  WW II 
C)  the oil shocks of the 1970s 
D)  the Lost Decade 
E)  the Cold War

Question 16

Due to the fact that most Latin American nations are oil ____, the price increase of oil in the 1970s led to trade ____.

Accepted Answer

A)  exporters, deficits 
B)  exporters, surpluses 
C)  importers, deficits 
D)  importers, surpluses 
E)  producers, surpluses 
A)  exporters, deficits 
B)  exporters, surpluses 
C)  importers, deficits 
D)  importers, surpluses 
E)  producers, surpluses

Question 17

The most famous proponent of ISI in Latin America was:

Accepted Answer

A)  Raul Prebisch. 
B)  Sebastian Edwards. 
C)  Carlos Diaz-Alejandro. 
D)  Ricardo Hausman. 
E)  none of the above 
A)  Raul Prebisch. 
B)  Sebastian Edwards. 
C)  Carlos Diaz-Alejandro. 
D)  Ricardo Hausman. 
E)  none of the above

Question 18

Which of the following would not be associated with ISI?

Accepted Answer

A)  high tariffs 
B)  fixed exchange rates 
C)  floating exchange rates 
D)  SOEs 
E)  exchange controls 
A)  high tariffs 
B)  fixed exchange rates 
C)  floating exchange rates 
D)  SOEs 
E)  exchange controls

In the view of dependency theory, the countries of the center are viewed as the _____.

Which Latin American country has had some success with SOEs, specifically in the oil and aeronautics industries?

What two phenomena are related to financial repression in Latin America?

The argument for ISI was rooted in what idea?

What are the terms of trade? Describe the argument that if the terms of trade are declining, then a country should import less. How did this argument relate to the development of ISI?

Under ISI, Latin American governments attempted to invest in ______ industries.

Which of these policies is not associated with ISI?

List and briefly describe the results of ISI in Latin America.

Government policies that influence the savings and investment decisions of individuals and financial institutions is known as:

Exchange rate shocks are accompanied by rates of inflation and real GDP.

List and briefly describe the collection of policies that made ISI "work".

The argument for ISI states that the traditional theory of _____ does not work for developing countries?

Which of the following was used to support ISI industries?

Center vs. Periphery is associated with:

What global event contributed to the end of ISI?

Due to the fact that most Latin American nations are oil , the price increase of oil in the 1970s led to trade .

The most famous proponent of ISI in Latin America was:

Which of the following would not be associated with ISI?

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Macroeconomic Stability

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Exam 6: Import Substitution in Latin America

In the view of dependency theory, the countries of the center are viewed as the _____.

Which Latin American country has had some success with SOEs, specifically in the oil and aeronautics industries?

What two phenomena are related to financial repression in Latin America?

The argument for ISI was rooted in what idea?

What are the terms of trade? Describe the argument that if the terms of trade are declining, then a country should import less. How did this argument relate to the development of ISI?

Under ISI, Latin American governments attempted to invest in ______ industries.

Which of these policies is not associated with ISI?

List and briefly describe the results of ISI in Latin America.

Government policies that influence the savings and investment decisions of individuals and financial institutions is known as:

Exchange rate shocks are accompanied by ____ rates of inflation and ____ real GDP.

List and briefly describe the collection of policies that made ISI "work".

The argument for ISI states that the traditional theory of _____ does not work for developing countries?

Which of the following was used to support ISI industries?

Center vs. Periphery is associated with:

What global event contributed to the end of ISI?

Due to the fact that most Latin American nations are oil ____, the price increase of oil in the 1970s led to trade ____.

The most famous proponent of ISI in Latin America was:

Which of the following would not be associated with ISI?

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Latin American Trade Policy

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Macroeconomic Stability

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Exchange rate shocks are accompanied by rates of inflation and real GDP.

Due to the fact that most Latin American nations are oil , the price increase of oil in the 1970s led to trade .