Deck 22: The Impact of Public Policies

Question 1

Which economic phenomena led to the questioning of traditional Keynesianism?

A) Inflation
B) Stagflation
C) Unemployment
D) Deflation

Answer 1

B

Question 2

Which negative effects of the welfare state were discussed after the breakdown of the Bretton Woods system? Please select all that apply.

A) Negative impact on economic growth.
B) Structural unemployment.
C) Political instability.
D) Erosion of social capital.

Answer 2

A,B

Question 3

What can be said about varieties of capitalism theory? Please select all that apply.

A) The varieties of capitalism theory depict an ideal type of a welfare state.
B) Within the varieties of capitalism theory, the welfare state is seen as a functionalist response to capitalism.
C) Within the varieties of capitalism theory, the welfare state is seen as the result of political conflicts.
D) Within the varieties of capitalism theory, the welfare state is seen as the result of a workers-employers conflict.

Answer 3

A,B

Question 4

Conservative welfare regimes aim at securing income replacement. Payments are dependent on contribution records. Liberal welfare regimes aim at maintaining the standard of living and payments are granted regardless of employment records.

Question 5

Within varieties of capitalism theory, liberal market economies (LME) and coordinated market economies (CME) are distinguished. CMEs are characterized by developing a highly specialized labour force, while LMEs develop more general skills.

Question 6

According to varieties of capitalism, welfare states are… Please select all that apply.

A) Inefficient since they are an inadequate institutional response to globalization.
B) Efficient since they help to develop comparative institutional advantages.
C) Providing an incentive to develop specialized labour skills.
D) Providing an incentive to develop 'radical innovation'.

Question 7

What is characteristic for the system of flexicurity? Please select all that apply.

A) Generous unemployment compensations.
B) Active labour market policies.
C) Wage flexibility.
D) High level of unemployment protection.

Question 8

What does Okun's thesis suggest?

A) Taxes and transfers within a welfare state harm economic efficiency.
B) Welfare states favour the development of structural unemployment (unemployability).
C) Welfare states are efficient since they help to develop comparative institutional advantages.
D) Welfare states are an investment in social capital.

Question 9

What are theoretical explanations of structural unemployment? Please select all that apply.

A) High minimum wages.
B) The insider-outsider problem.
C) Gender discrimination.
D) Globalization.

Question 10

Policy convergence is explained by… Please select all that apply.

A) functional necessities.
B) policy transfer.
C) policy diffusion.
D) path dependencies.