Deck 16: Export-Oriented Growth in East Asia

Question 1

Investment in education in the high-growth Asian economies was ________ in ________.

A)low; primary schools
B)high; primary schools
C)low; primary and secondary schools
D)high; primary and secondary schools
E)high; university education

Answer 1

D

Question 2

Which of the following is NOT a mechanism the high-growth Asian economies used to share wealth across all layers of society?

A)Significant investments in rural infrastructure
B)Free public education
C)Tax policies that strongly redistributed income from rich to poor
D)Land reform

Answer 2

C

Question 3

High-growth Asian economies were careful to maintain stable macroeconomic environments.

Answer 3

True

Question 4

If a country's income grows at the rate of 5 percent a year,it doubles in about

A)eight years.
B)six and one-half years.
C)ten years.
D)fourteen and one-half years.
E)twenty years.

Question 5

Macroeconomic stability has been a high priority for the economic policies of the high-growth Asian economies.

Question 6

Name the eight high-growth Asian economies.

Question 7

All of the following are true of the high-growth Asian economies except

A)macroeconomic stability has been a high priority of their economic policies.
B)strong, credible commitments to sharing economic growth across all layers of society exist.
C)exports have been promoted while at the same time being more open to imports than other developing countries.
D)restrictions on imports of capital goods have helped to favor the development of domestic technology.

Question 8

What did the high-growth Asian economies do to share wealth across all levels of society?

Question 9

All eight countries known as the high-growth Asian economies are outwardly oriented for trade and investment,and all have experienced rapid growth by world standards.

Question 10

Each of the high-growth Asian economies promoted manufactured exports.

Question 11

Compare macroeconomic policies in the high-growth Asian economies with policies in the rest of the world.

Question 12

The experience of the high-growth Asian economies has brought attention to predictions about income inequality made by Kuznets.He predicted that at first income inequality would ________ as economies began to develop.In the HPAE's experience,it ________.

A)rise; rose
B)decrease; decreased
C)rise; fell
D)fall; rose

Question 13

After 2000,rapid economic growth continued for the high-growth Asian economies.

Question 14

One of the main differences between the recent economic history of the high-performance Asian economies and most of the rest of the world is that growth in the Asian economies

A)increased in the 1960s.
B)continued in the 1980s.
C)slowed down in the 1960s.
D)slowed down in the 1970s.

Question 15

Which of the following is a FALSE statement about education in the high-growth Asian economies?

A)An emphasis on state funding of advanced degree programs, such as engineering and computer science, increased manufacturing production significantly.
B)Literacy rates rose dramatically in the high-growth Asian economies and laid a foundation for a skilled labor force.
C)As the average educational level rose, workers could take on more technological, sophisticated production, pushing new investment into product lines.
D)Spending was focused on the primary and secondary level, where it has the greatest social impact.

Question 16

Movement of the fast-growing Asian nations through the demographic transition may have had an impact on growth rates because it

A)reduced expenditures on health care.
B)reduced expenditures on pensions.
C)increased savings.
D)increased consumption relative to GDP.

Question 17

Falling inequality has been a feature of the high-growth Asian economies due to land reform,free public education,free basic health care,and significant investments in infrastructure for communication,sanitation,and transportation.

Question 18

Contrast the economic experience of the high-growth Asian economies with the experience in Latin America,especially with regard to the 1980s and in terms of weathering financial crises.

Question 19

Which of the following has NOT been promoted by high-growth Asian economies?

A)Large job creation in the government sector
B)Land reform
C)Free basic health care
D)Significant investments in rural infrastructure

Question 20

Which of the following is NOT a characteristic of high-growth Asian economies?

A)stable macroeconomic policies
B)similar governments
C)credible commitments to expanding access to health care
D)the development of skilled workforces

Question 21

The high-growth Asian economies have been more open to imports than most developing countries.

Question 22

Describe several components of the institutional environment in the high-growth Asian economies that are critical to their success.

Question 23

One of the functions of deliberation councils is to

A)coordinate foreign investment from different countries.
B)set educational policy for universities and colleges.
C)coordinate government policy and private investment.
D)ensure stability in the country's fiscal and monetary policies.

Question 24

Rent-seeking activities have been a major problem in the high-growth Asian economies and contributed greatly to the Asian financial crisis.

Question 25

A technique for implementing industrial policies that probably worsened the effects of the 1997 crisis was

A)directed credit.
B)protection from imports.
C)export subsidies.
D)research subsidies.

Question 26

Which of the following is NOT a contributing factor into why the high-growth Asian economies were able to rapidly accumulate physical and human capital?

A)A stable macroeconomic environment meant low inflation.
B)Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks.
C)The demographic transition meant that the proportion of their population working was higher.
D)A rapid rise in income made greater amounts of savings possible.

Question 27

The high-growth Asian economies focused their education spending on the university level to better develop high technology workers.

Question 28

The World Bank's view of the effectiveness of industrial policies in East Asia is that,in general,they

A)hindered growth.
B)had little or no effect on growth.
C)encouraged growth.
D)are the main factor in the success of the East Asian economies.

Question 29

The voices of business and industry are less likely to influence government policy than the voices of consumers in the high-growth Asian economies.

Question 30

Critics of the World Bank's analysis of East Asian industrial policies argue that

A)even though growth was faster in the non-targeted industries than it was in the targeted ones, the policies were essential to overall economic growth.
B)growth was faster in nearly every targeted industries than it was in the non-targeted ones.
C)even though growth was the same in the targeted industries as it was in the non-targeted ones, they would have grown slower without the policies.
D)growth was slower in the targeted industries; hence the policies did not work.

Question 31

In general,the relationship between democracy and economic growth as demonstrated by the high-growth Asian economies is that

A)democratic nations grow faster than undemocratic nations.
B)democratic nations grow slower than undemocratic nations.
C)there does not seem to be a relationship between democracy and economic growth.
D)democracies are much more variable in their rates of growth than undemocratic nations.

Question 32

Could the high-income Asian economies be characterized as open economies? Explain.

Question 33

Which of the following was NOT part of Korean industrial policies?

A)An aggressive promotion of exports along with high levels of protection
B)Directed credit and tax breaks given to targeted industries
C)Bailing out bankrupt firms without any attempt to dispose distressed firms
D)Allowing exporting firms to borrow funds at below-market interest rates

Question 34

Deliberation councils have no private sector input.

Question 35

What appears to have been one of the major causes of the Asian financial crisis?

Question 36

Identify at least three key factors in the high-growth Asian economies' economic success.

Question 37

Property rights are relatively secure and free from the threat of nationalization in the high-growth Asian economies.

Question 38

Similarly to the Latin American region,the high-growth Asian economies experienced a Lost Decade in the 1980s.

Question 39

The Latin American region has more economic equality than the high-growth Asian economies because nations are more democratic.

Question 40

In the high-growth Asian economies,inflation is kept under control and budget deficits and foreign debt levels are kept within the ability of the governments and the economies to handle them,which is quite different from the past experience of the Latin American region.

Question 41

Which factors account for most of the growth in the high growth Asian economies?

Question 42

Export promotion is widely regarding by economists as a positive role for government policy makers to play because it is very effective at promoting economic growth.

Question 43

Studies of the high growth Asian economies confirm the importance of savings and investment in increasing economic growth.

Question 44

The main contributor to growth in the high growth Asian economies,according to empirical research was government industrial policies.

Question 45

What evidence is there that industrial policies were a major influence on East Asian success?

Question 46

One obstacle to the adoption of the export promotion model by countries in other regions is that

A)the Uruguay Round of the GATT forbids many types of export promotion policies.
B)research and development for new exports is too expensive.
C)only noncommercial R&D is permitted under the rules of the GATT.
D)industrial monopolies in the high-income countries will block further exports by developing countries.

Question 47

What types of government intervention did the World Bank determine was common in the East Asian economies?

Question 48

All of the following would be potential problems if developing nations around the world emphasized export promotion except

A)industrial nations may be unable to absorb the exports of many newly industrializing nations.
B)it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies.
C)export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption.
D)current research has clearly established that there is no causal connection between exports and faster economic growth.

Question 49

Measurements of TFP indicate that the East Asian success story is based on

A)a significantly different economic model from the one followed in the West.
B)unusually large amounts of innovation.
C)rapid increases in the education of the work force.
D)high amounts of savings and investment.

Question 50

One economic advantage of a large share of exports in GDP is that countries

A)can reduce their budget deficits.
B)can purchase the imports they need.
C)can maintain lower rates of unemployment.
D)develop more labor-intensive industry.

Question 51

Which of the following economic conditions cause export growth to be a basis for faster overall economic growth?

A)Diseconomies of scale in production for the domestic market
B)A larger-than- average service sector
C)A larger-than-average manufacturing sector
D)Economies of scale in production for the world market

Question 52

Total factor productivity is

A)the quantity of output per worker.
B)the quantity of output per unit of capital.
C)the ratio of inputs divided by outputs.
D)the quantity of output per unit of input.