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GLOBL 130 - Final Review Flashcards | StudBud
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GLOBL 130 - Final Review
GLOBL 130 - Final Review
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1
If you are a rich country, how do you want your emissions data to be displayed? (graph not important)
aggregate/total - China produces more total emissions than you
per capita - China produces more per capita emissions than you
cumulative over time - China has produced more emissions throughout history
2
Who has an absolute advantage in Iron? (note the countries make this amount) Is that important for international trade?
China, yes absolute advantage is important for trade
Australia, yes absolute advantage is important for trade
Australia, no absolute advantage is not important for trade
China, no absolute advantage is not important for trade
3
What are the reasons why a country might fix its exchange rate above and below the market rate?
Above: high levels of private savings; Below: infant industries survive
Above: they’re bad at economics; Below: they are good at economics
Above: at risk of running out of $; Below: credit bubbles
Above: subsidize important sectors; Below: attractive to foreign buyers
4
Which is
NOT
a problem with price ceilings?
inducement to black marketers and smugglers
lost opportunity for mutually advantageous trade called “deadweight losses”
they are expensive for governments to implement
wasted resources, like time wasted waiting in line
5
What does Amartya Sen’s “capabilities approach” tell us is most important for understanding development?What matters is…
gross national income per capita
utility of economic choices
the freedom or agency to make different choices
poverty rates and unemployment
6
If I wanted to make sure I didn’t overestimate growth rates, I would look at the
nominal variable (measured in previous year)
independent variable (GDPPC)
dependent variable (infant mortality)
real variable (measured in base year)
7
Which does
NOT
cause a shift of the Supply Curve?
cost of inputs
change in production tech
number of potential producers
price change from autarky to world price
8
Which one is Aggregate Supply? What does that equal?
1, equilibrium of economic spending
3, Price Ceiling
4, GDP - all produced and sold in the economy
2, the total amount people spend in the economy
9
If I was to graph the exchange rate for the Mexican peso compared to the US dollar, what would it be?
20 pesos per dollar
5 US cents per peso
86 Myanmar Kyat
10
What does INUS mean?
import-oriented development is necessary, unsuccessful unless specialized
investment does not create unequalsystems of growth
insufficient but non redundant part of unnecessary but sufficient condition
it is a marker of growth, like GNI or GDPPC
11
As a company manager, why do I have an incentive to become overleveraged?
because I will have more equity than debt, leading to high profits
trick question: companies never want more debt than equity
in good times, large profits comes from expanding balance sheet
12
What is the central point Dos Santos makes in his 1970 article?
only internal, not external conditions affect development
development through int’l trade reproduces colonial dependency conditions
no trade is helpful to countries trying to develop - they must isolate
dependency theory only matters after world war 2
13
Which was
NOT
a negative aspect of export-oriented industrialization?
rapid growth & industrialization
lower cost of living due to higher cost of traded goods
favoring particular industries and firms
oligarchic interests exert significant political and economic influence
14
How did we use panel data to correct for omitted variable bias in our homework?
made graphs of shifting supply or demand curves
looked at the changes over 5 years
only paid attention to GDP growth
switched our independent and dependent variables
15
Which does
NOT
cause a shift of the Demand Curve
change in population
change in price of substitutes and complements
change in price of goods
change in social norms or tastes or income
16
Which is
NOT
a potential private solution to externalities?
private investing in green technologies
moral suasion
charitable donations
investing in public infrastructure
17
Which is NOT an example of a contingent liability?
a future lawsuit that a company doesn't think will result in losses
a future lawsuit that seems to have a very strong case
a "best case" scenario: a company turns possible losses into huge gainz
explicit damages that resulted from a decision a company made
18
Which is
NOT
a broad approach to industrialization?
DERI (Direct Exchange Rate Intervention)
EOI (Export Oriented Industrialization)
ISI (Import Substitution Industrialization)
19
Which world leader is credited with starting the Pink Tide?
Cristina Fernández de Kirchner
Evo Morales
Luiz Inácio Lula da Silva
Hugo Chávez
20
Majed did some research last year, and put his data into this scatterplot. What kind of relationship do we observe?
positive correlation
both a positive and negative correlation
no relationship
negative correlation
21
A PPP correction is
NOT
used on what kind of thing?
a night at a hotel
tons of gravel
electricity
a PS 5
22
China makes 80 Iron or 100 Cars; Australia makes 70 Iron or 50 Cars. Who has comparative advantage in Iron? What is it?
China, 1.25 cars
Australia, 1.4 iron ore
Australia, 0.71 cars
China, 0.8 iron ore
23
Using our coffee example, what are stock variables and flow variables? (we think about CARBON normally)
stock= price of coffee in cap & trade market; flow= price up or down
stock= amount of coffee in cup; flow= how fast I drink
stock= amount of coffee in the world; flow= future amount of coffee
24
What does a healthy financial sector
NOT
do?
facilitates transactions that would occur even without financial sector
ensures people’s $ invested according to their risk-appetite and profiles
collects small pots of savings into big pools of investment $
capital flows to well-managed companies & projects
25
What is financial depth?
measure of availability of funds that a country could borrow at any time
measure of the timetable of interest rates on a country's loans
measure of amount of wealth in a country’s banking system relative to GDP
measure of GDPPC, PPP corrected, relative to a country's amount of debt
26
Which condition
IS
appropriate to make a S&D Graph (NOT one that will fail to produce an efficient quantity)
monopolies
pollution
customers with a low ability to pay
a carbon market
27
Which is
NOT
a reason why the US government deregulated banks and promoted sub-prime lending?
it was part of a regulatory or political capture
couldn’t figure out politically how to deal with inequality
US markets were seen as opaque and unreliable
loosened credit because of a stalemate of fiscal policies
28
Which was
NOT
part of the Latin American / Third World Debt Crisis?
US and UK raised interest rates steeply to try to stop systemic inflation
first country to experience this was Brazil in 1985
based on large amounts of borrowing during the 1970s
wave of debt/currency crises swept some of the developing world
29
If the famine in Ethiopia (1972-4) was
NOT
about a shortage of food, what is an explanation for what happened?
there was a decline in overall income in Wollo
there were good transportation and roads, so lots of food was delivered
the market was equitable and allocating products to those able to pay
the market had a double shift: demand right and supply left
30
What has been driving the growth of carbon emissions in large, developing economies?
growth in carbon intensity
growth in per capita GDP
population growth
31
Not being poor is _________ for being rich.
sufficient
necessary and sufficient
sufficient but not necessary
necessary but not sufficient
