Question 1

At the end of the populist cycle,workers are better off than they were before the populist cycle began in terms of real wages and job creation.

Accepted Answer

A) True 
 B)False

Question 2

Briefly describe orthodox stabilization policies.

Accepted Answer

The answer of Briefly describe orthodox stabilization policies....

Question 3

The Lost Decade refers to the years between approximately

Accepted Answer

A) 1975 and 1985. 
B) 1980 and 1990. 
C) 1987 and 1997. 
D) 1972 and 1980. 
E) 1960 and 1970.

Question 4

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) Using economic tools to reach specific goals regarding labor,the orientation of business or the role of foreigners 
E) Focus on controlling inflation

Question 5

Latin America

Accepted Answer

A) is significantly smaller than the NAFTA market in terms of population. 
B) has a smaller population,but a larger GDP than the NAFTA market. 
C) has a larger population than the NAFTA market. 
D) is similar in population to the NAFTA market.

Question 6

Describe the policies that would be associated with Import Substitution Industrialization.What are the primary criticisms of these policies?

Accepted Answer

The answer of Describe the policies that would be associated...

Question 7

What economic problems persist in Latin America? How has this shaped recent policy in the region and why are changes particularly challenging?

Accepted Answer

The answer of What economic problems persist in Latin America?...

Question 8

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) economic populism. 
D) import substitution industrialization. 
E) structural reform.

Question 9

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 10

From 1900 to 1960,Latin America's real GDP grew

Accepted Answer

A) slower than Europe,Asia,and the U.S. 
B) as fast or faster than Europe,Asia,and the U.S. 
C) faster than Europe and the U.S.but slower than Asia. 
D) faster than Asia,but slower than Europe and the U.S.

Question 11

One of the main causes of economic inequality in Latin America is the

Accepted Answer

A) failure of governments to support urban consumers. 
B) lack of progress in raising agricultural productivity. 
C) lack of governmental interest in solving the problem of inequality. 
D) focus of governments on agricultural exports to the detriment of food production. 
E) oil crisis of the 1970s.

Question 12

What do structural reform policies emphasize?

Accepted Answer

The answer of What do structural reform policies emphasize?...

Question 13

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 14

What is the primary reason exchange rates were overvalued under ISI?

Accepted Answer

The answer of What is the primary reason exchange rates...

Question 15

Overvalued exchange rates were a persistent problem under ISI policies.In part,this was a deliberate policy in order to

Accepted Answer

A) increase imports. 
B) discourage exports. 
C) help targeted industries sell their exports. 
D) help targeted industries buy imports. 
E) increase the competition for targeted industries.

Question 16

Most analysts in the United States and the international financial community initially perceived the debt crisis as a temporary,short-run liquidity problem so they advised increasing capital flows to Latin America.

Accepted Answer

A) True 
 B)False

Question 17

Raul Prebisch was an Argentine economist who argued that

Accepted Answer

A) the terms of trade would decline for primary commodity exports. 
B) the terms of trade would decline for manufactured goods exports. 
C) imports substitution policies were a solution to export pessimism. 
D) Both A and C. 
E) Both B and C.

Question 18

Indirectly,overvalued exchange rates in Latin America caused

Accepted Answer

A) a capital shortage in agriculture. 
B) a capital shortage in industry. 
C) a capital abundance in agriculture. 
D) a growth in incomes in rural areas. 
E) an increase in competitive pressures faced by industry.

Question 19

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. 
E) use industrial policies to foster growth.

Question 20

The terms of trade (TOT)is defined as

Accepted Answer

A) (index of export prices)/(index of import prices). 
B) (home-country currency)/(foreign-country currency). 
C)  $ R^{*} $ ($ \frac{P^{*}}{P} $) 
D)  $ R^{*} $ ($ \frac{P}{P^{*}} $) 
E) having a competitive advantage over other nations.

Exam 15: Trade and Policy Reform in Latin America

At the end of the populist cycle,workers are better off than they were before the populist cycle began in terms of real wages and job creation.

Briefly describe orthodox stabilization policies.

The Lost Decade refers to the years between approximately

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

Latin America

Describe the policies that would be associated with Import Substitution Industrialization.What are the primary criticisms of these policies?

What economic problems persist in Latin America? How has this shaped recent policy in the region and why are changes particularly challenging?

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

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.

From 1900 to 1960,Latin America's real GDP grew

One of the main causes of economic inequality in Latin America is the

What do structural reform policies emphasize?

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

What is the primary reason exchange rates were overvalued under ISI?

Overvalued exchange rates were a persistent problem under ISI policies.In part,this was a deliberate policy in order to

Most analysts in the United States and the international financial community initially perceived the debt crisis as a temporary,short-run liquidity problem so they advised increasing capital flows to Latin America.

Raul Prebisch was an Argentine economist who argued that

Indirectly,overvalued exchange rates in Latin America caused

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

The terms of trade (TOT) is defined as