stabilization adjustment reform and privatization Mcqs
1. In 1979-80 China first created _____ for foreigners to set up enterprises hire labor and import duty-free goods for processing and re-exporting ?
comments icon0

A. Economic Union zones

B. liberalized trade monopoly zones

C. special economic zones

D. Communist free trade areas

2. The industrial concentration ratio is the proportion of an industrys output ?
comments icon0

A. as a percentage of production and marketing

B. and labor intensities relative to labor productivity

C. produced in cement, machine tools and steel industries

D. produced by the three largest firms in the industry
3. Before the 1978 reforms China had a(n) ?
comments icon0
A. mono bank system

B. urban credit cooperatives

C. housing savings banks

D. agricultural bank only

4. Countries facing a persistent external deficit can ?
comments icon0

A. borrow overseas

B. increase trade restrictions and exchange controls

C. Undertake expenditure-reducing policies

D. . undertake expansionary monetary and fiscal policies

5. Countries such as ________ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war ?
comments icon0

A. Brazil and Argentina

B. Singapore and Malaysia

C. Algeria and Yugoslavia

D. Japan and Korea

6. A development bank based in London, which loans funds to governments of Eastern Europe and the former Soviet Union is the ?
comments icon0

A. OECD

B. Transitional Monetary Fund

C. World Bank

D. European Bank for Reconstruction and Development
7. According to the Brandt report the IMFs insistence on drastic measures in short time periods ?
comments icon0

A. #NAME?

B. reduces basis-needs attainment

C. contributes to low-income countries recovery quickly

D. may lead to the downfall of governments

8. Pathologies endemic to the Soviet bureaucracy included secrecy formalism cumbersome procedures rigidity and the tendency to concentrate on control rather than performance The party controlled The state by using the ____ the power to recommend and approve managers in administration and enterprises, of appointments and promotions to control access to government positions ?
comments icon0

A. Gosplan

B. nomenklatura system

C. Gosagroprom

D. Parastatals

9. Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized ?
comments icon0

A. contractionary monetary and fiscal policies

B. short term-adjustment with a human face

C. long-run institutional and structural economic change

D. currency devaluation

10. Which of the following is not a quasi-public good ?
comments icon0

A. national defense

B. libraries

C. fire protection

D. an automobile
11. When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?
comments icon0

A. switching spending from domestic to foreign sources

B. devaluing local currencies

C. increase government spending

D. increase trade restrictions by imposing quota

12. State-owned enterprises (SOEs) are also called ?
comments icon0

A. government oligopolies

B. centralized firms

C. public enterprises

D. market economies

13. Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?
comments icon0
A. IMF

B. OECD

C. OPEC

D. U.S

14. Which of the following statement is NOT true about state owned enterprises (SOEs) ?
comments icon0

A. SOEs perform better with competition

B. Successful performing SOEs in Japan, Singapore and Sweden have greater managerial autonomy and accountability than other SOEs

C. SOEs in South Korea and Sweden generally achieve inferior economic results to those in Ghana

D. Financial autonomy is a major factor contributing to SOEs managerial effectiveness

15. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?
comments icon0

A. S-I = X/M

B. S + I = X + M

C. S = I (X+M)

D. S I = X = M
16. Internal balance refers to ?
comments icon0

A. monetary policy offsetting fiscal policy

B. exports equal to imports

C. exports minus imports

D. full employment and price stability
17. A critic of Shock therapy to transition economies. Vladamir Popov, contends that shock therapists put a heavy emphasis on ?
comments icon0

A. the creation of a small-scale private sector ans small independent banks

B. introducing the reform package at once to ensure that it became too late and costly to reverse the reforms

C. attempts to gradually remake institutions

D. agricultural reform rather than industrial reforms to overcome food insecurity

18. Privatization refers to a range of policies including ?
comments icon0

A. franchising or contracting public services or leasing public assets to the Private sector

B. Liberalization of entry into activities previously restricted to the public sector

C. . two infant industries merging into a monopoly

D. changing part of a public enterpriss ownership to the private sector

19. Which of the following may constitute the International Monetary Funds conditionality for borrowing?
comments icon0

A. restraining public sector employment and wage rates

B. limiting credit creation and liberalizing trade

C. government reducing budget deficts

D. . achieving market-clearing price