Growth and Development
Midterm Examination 2

Short Answer Essay

1. What are the common methods that government can help foster research and development?

2. What is the liberal view for intellectual property rights?

3. What is the mercantilistic view for intellectual property rights?

4. What is the structuralist view for intellectual property rights?

5. What happens if intellectual property rights are weak?

6. Please describe using at least one sentence each of the following social characteristics of Japan:

(a) Imitate and Adapt

(b) Hierarchy

(c) National Corporatism

7. Please describe using at least one sentence each of the following economic characteristics of Japan:

(a) "Three Sacred Treasures"

(b) Japanese Savings Rate

(c) Ministry of International Trade and Industry (MITI)

8. What was the Keiretsu important for Japan's economic development?

(a) Bank

(b) Antitrust Regulations

(c) Hostile Takeovers

9. The Japanese economy entered into a period of stagnation starting in the 1990s.  Please describe in one sentence or more each of the following:

(a) Liberal Democratic Party

(b) Asset Bubbles

(c) Banks

10. Economists have recommended the following cures for the Japanese society.  Explain using at least one sentence or more why these recommendations will not work.

(a) Export Growth Strategy

(b) Consumer Spending

(c) Keynesian Policy

11. What are the three methods government uses to privatize assets like apartments, factories, and land?

(a) Vouchers

(b) Auctions

(c) Corporations

12. What happens when government removes the price controls?

13. What were the problems with the large Soviet bureaucracies, when they planned the economy?

(a) Production quotas

(b) Material balancing

(c) Quality

(d) Innovation

14. What are benefits and problems for Russia's transition to capitalism?

(a) Include in your answer for benefits of banks, resources, taxes, regulations, and international markets.

(b) Include in your answer for problems of crime, Russian ruble, and current direction of government.

15. How did the Communist Party in China incorporate market reforms into their society?

16. What kind of economic policies do the World Bank, International Monetary Fund, and World Trade Organization recommend?

(a) Do most countries follow these policies?

17. What is import substitution?

(a) Which countries have used this growth approach?

(b) Is this policy effective?

(c) What was the financial position of governments that used these policies?

18. What is export oriented growth?

(a) Which countries have used this growth approach?

(b) Is this policy effective?

(c) What was the financial position of governments that used these policies?

(d) Why are high savings rate important?

19. What is the role of women in Less Developed Countries (LDCs)?

(a) Integration

(b) Marginalization and Exploitation

20. What are the characteristics of countries that export petroleum and other valuable minerals?

(a) Government Revenue

(b) Traditions

(c) Who owns the resources?

(d) Foreigners