MCQs of Economics – Stabilization, Adjustment, Reform and Privatization

Which of the following may constitute the International Monetary Fund’s conditionality for borrowing?
I- government reducing budget deficts
II- limiting credit creation and liberalizing trade
III- achieving market-clearing price
IV- restraining public sector employment and wage rates

Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ____ as the lender of last resort

According to the Brandt report the IMF’s insistence on drastic measures in short time periods
I- contributes to low-income countries recovery quickly
II- reduces basis-needs attainment
III- may lead to IMF riots
IV- may lead to the downfall of governments

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

Internal balance refers to

Countries facing a persistent external deficit can
I- borrow overseas
II- increase trade restrictions and exchange controls
III- undertake expansionary monetary and fiscal policies
IV- Undertake expenditure-reducing policies

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

Structural economists from the United Nations Economic Commission for Latin America (ECLA) emphasized

Countries such as _____ that failed to adjust to a persistent external disequilibrium were more vulnerable to poverty displacement and even war

In 1979-80 China first created _____ for foreigners to set up enterprises hire labor and import duty-free goods for processing and re-exporting

Before the 1978 reforms China had a(n)

The industrial concentration ratio is the proportion of an industry’s output

Which of the following is not a quasi-public good?

State-owned enterprises (SOEs) are also called

Which of the following statement is NOT true about state owned enterprises (SOEs)

Privatization refers to a range of policies including
I- changing part of a public enterpris’s ownership to the private sector
II- Liberalization of entry into activities previously restricted to the public sector
III- two infant industries merging into a monopoly
IV- franchising or contracting public services or leasing public assets to the Private sector

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

A critic of “Shock therapy” to transition economies. Vladamir Popov, contends that shock therapists put a heavy emphasis on

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