Question 1

Latin American economies have become relatively more closed to international trade since 1985.

Accepted Answer

A) True 
 B)False  False

Question 2

The main difference between stabilization policies and structural reform policies is that stabilization policies

Accepted Answer

A) focus on microeconomic issues and structural reform policies focus on the macroeconomic environment. 
B) focus on macroeconomic issues and structural reform policies focus on the microeconomic environment. 
C) are rarely used by reform governments; they prefer to use structural reform policies in their place. 
D) create less unemployment than structural reform policies. 
A) focus on microeconomic issues and structural reform policies focus on the macroeconomic environment. 
B) focus on macroeconomic issues and structural reform policies focus on the microeconomic environment. 
C) are rarely used by reform governments; they prefer to use structural reform policies in their place. 
D) create less unemployment than structural reform policies. B

Question 3

According to Prebisch and other ISI theoreticians,countries should begin to shift their comparative advantage away from primary commodity production by first producing

Accepted Answer

A) industrial goods such as pumps and generators. 
B) complex consumer goods such as autos and appliances. 
C) simple consumer goods such as food products and textiles. 
D) minerals and agricultural products. 
A) industrial goods such as pumps and generators. 
B) complex consumer goods such as autos and appliances. 
C) simple consumer goods such as food products and textiles. 
D) minerals and agricultural products. C

Question 4

Reform of a country's trading system,including the reduction or elimination of trade barriers,is an example of

Accepted Answer

A) an orthodox stabilization plan. 
B) a heterodox stabilization plan. 
C) import substitution industrialization. 
D) structural reform. 
A) an orthodox stabilization plan. 
B) a heterodox stabilization plan. 
C) import substitution industrialization. 
D) structural reform.

Question 5

The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices.

Accepted Answer

A) True 
 B)False

Question 6

Over time,the terms of trade of Latin American countries have generally ________,and the terms of trade of developed countries have generally ________.

Accepted Answer

A) worsened; worsened 
B) worsened; improved 
C) improved; worsened 
D) improved; improved 
A) worsened; worsened 
B) worsened; improved 
C) improved; worsened 
D) improved; improved

Question 7

Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs.

Accepted Answer

A) True 
 B)False

Question 8

Latin America has more trade agreements than any other region,and it has some of the oldest as well.

Accepted Answer

A) True 
 B)False

Question 9

Rapid growth of government spending in Latin America in the 1970s led to

Accepted Answer

A) the Debt Crisis. 
B) rapid economic growth. 
C) direct foreign investment. 
D) capital outflows. 
A) the Debt Crisis. 
B) rapid economic growth. 
C) direct foreign investment. 
D) capital outflows.

Question 10

Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to

Accepted Answer

A) tax too heavily. 
B) regulate too heavily. 
C) print money to finance policies to stimulate the economy. 
D) keep out foreign competition. 
A) tax too heavily. 
B) regulate too heavily. 
C) print money to finance policies to stimulate the economy. 
D) keep out foreign competition.

Question 11

The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan

Accepted Answer

A) targets the problem of inflation, while the heterodox plan targets unemployment. 
B) reduces trade flows less than the heterodox plan. 
C) does not include higher taxes and the heterodox plan does. 
D) does not include wage and price controls and the heterodox plan does. 
A) targets the problem of inflation, while the heterodox plan targets unemployment. 
B) reduces trade flows less than the heterodox plan. 
C) does not include higher taxes and the heterodox plan does. 
D) does not include wage and price controls and the heterodox plan does.

Question 12

The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt.

Accepted Answer

A) True 
 B)False

Question 13

While the Brady Plan did not end the debt crisis,it was a significant step toward greater stability in the Latin American region.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a characteristic of populist regimes?

Accepted Answer

A) Nationalistic ideologies 
B) Focus on economic growth 
C) Focus on income redistribution 
D) Focus on controlling inflation 
A) Nationalistic ideologies 
B) Focus on economic growth 
C) Focus on income redistribution 
D) Focus on controlling inflation

Question 15

Why might export pessimism be wrong?

Accepted Answer

First,statistical studies do not support

Question 16

One year into the crisis,Argentina's interest payments were roughly equal to

Accepted Answer

A) 100 percent of exports. 
B) 60 percent of exports. 
C) 45 percent of exports. 
D) 10 percent of exports. 
A) 100 percent of exports. 
B) 60 percent of exports. 
C) 45 percent of exports. 
D) 10 percent of exports.

Question 17

The acceleration of inflation that characterizes many economic populist movements is usually the result of

Accepted Answer

A) a rapid increase in the demand for exports. 
B) the printing of money to finance government budget deficits. 
C) current account deficits. 
D) import substitution policies. 
A) a rapid increase in the demand for exports. 
B) the printing of money to finance government budget deficits. 
C) current account deficits. 
D) import substitution policies.

Question 18

Rent seeking

Accepted Answer

A) is unlikely the more heavily engaged government planners are with the economy. 
B) is more likely where institutions are strong. 
C) is not likely to lead to waste and efficiency. 
D) is more likely when government policy creates something of value that government officials are charged with distributing. 
A) is unlikely the more heavily engaged government planners are with the economy. 
B) is more likely where institutions are strong. 
C) is not likely to lead to waste and efficiency. 
D) is more likely when government policy creates something of value that government officials are charged with distributing.

Question 19

What are the three initial conditions that trigger economic populism?

Accepted Answer

Economic populism is usually triggered b

Question 20

Proponents of ISI assumed that governments

Accepted Answer

A) were capable of identifying and correcting market failures. 
B) were capable of identifying and correcting the excesses of economic populists. 
C) should enact orthodox stabilization plans. 
D) could control the terms of trade. 
A) were capable of identifying and correcting market failures. 
B) were capable of identifying and correcting the excesses of economic populists. 
C) should enact orthodox stabilization plans. 
D) could control the terms of trade.

Latin American economies have become relatively more closed to international trade since 1985.

The main difference between stabilization policies and structural reform policies is that stabilization policies

According to Prebisch and other ISI theoreticians,countries should begin to shift their comparative advantage away from primary commodity production by first producing

Reform of a country's trading system,including the reduction or elimination of trade barriers,is an example of

The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices.

Over time,the terms of trade of Latin American countries have generally ,and the terms of trade of developed countries have generally .

Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs.

Latin America has more trade agreements than any other region,and it has some of the oldest as well.

Rapid growth of government spending in Latin America in the 1970s led to

Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to

The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan

The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt.

While the Brady Plan did not end the debt crisis,it was a significant step toward greater stability in the Latin American region.

Which of the following is NOT a characteristic of populist regimes?

Why might export pessimism be wrong?

One year into the crisis,Argentina's interest payments were roughly equal to

The acceleration of inflation that characterizes many economic populist movements is usually the result of

Rent seeking

What are the three initial conditions that trigger economic populism?

Proponents of ISI assumed that governments

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters

Exam 15: Trade and Policy Reform in Latin America

Latin American economies have become relatively more closed to international trade since 1985.

The main difference between stabilization policies and structural reform policies is that stabilization policies

According to Prebisch and other ISI theoreticians,countries should begin to shift their comparative advantage away from primary commodity production by first producing

Reform of a country's trading system,including the reduction or elimination of trade barriers,is an example of

The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices.

Over time,the terms of trade of Latin American countries have generally ________,and the terms of trade of developed countries have generally ________.

Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs.

Latin America has more trade agreements than any other region,and it has some of the oldest as well.

Rapid growth of government spending in Latin America in the 1970s led to

Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to

The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan

The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt.

While the Brady Plan did not end the debt crisis,it was a significant step toward greater stability in the Latin American region.

Which of the following is NOT a characteristic of populist regimes?

Why might export pessimism be wrong?

One year into the crisis,Argentina's interest payments were roughly equal to

The acceleration of inflation that characterizes many economic populist movements is usually the result of

Rent seeking

What are the three initial conditions that trigger economic populism?

Proponents of ISI assumed that governments

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters

Over time,the terms of trade of Latin American countries have generally ,and the terms of trade of developed countries have generally .