Title: Cat for Lesson 3 - The United States
Course: 383-303-FD-55-01 • International Economics

Test info catégorie

Q: Question

Which of the following statements corresponds to the implementation of a Keynesian policy?
- Government must play a major role in an economy. (Correct answer! In fact¤ according to Keynes¤ it is the government's responsibility to stimulate the economy using appropriate policies.)
- Government must withdraw from sectors where it previously played a part. (Wrong answer. According to Keynes¤ it is the government's responsibility to stimulate the economy using appropriate policies.)
- Inflation must be increased in order to stimulate growth. (The correct answer is the first statement. In fact¤ according to Keynes¤ it is the government's responsibility to stimulate the economy using appropriate policies. The statement presented here is also illogical.)
- Government revenue must be reduced during periods of inflation. (Wrong answer. According to Keynes¤ it is the government's responsibility to stimulate the economy using appropriate policies. The correct answer is the first statement.)
A: Government must play a major role in an economy.

Q: Question

Which of the following statements corresponds to the implementation of neo-liberal policies?
- Government must play a major role in an economy. (The opposite is true. Neo-liberals advocate less government intervention (fewer regulations and laws) and greater freedom for markets.)
- Government must deregulate and let the market work. (Correct answer! In fact¤ neo-liberals advocate less government intervention (fewer regulations and laws) and greater freedom for markets.)
- Government must specifically implement budget and fiscal policies to stabilize the economy. (Wrong answer. Neo-liberals rely on monetary policies to stimulate the economy¤ not budget or fiscal policies.)
- It is important to increase the role of the ministries of industry and trade. (Wrong answer. Neo-liberals advocate less government intervention (fewer regulations and laws) in various government departments and legislation.)
A: Government must deregulate and let the market work.

Q: Question

The trade deficit in the United States increased because:
- Their exports increased. (Wrong answer. A trade deficit is when total exports minus total imports provides a negative result. An increase in exports cannot cause a trade deficit.)
- Their budgetary revenues increased. (Wrong answer. A trade deficit is when total exports minus total imports provides a negative result. Budgetary revenues are therefore irrelevant.)
- Their imports increased faster than their exports. (Correct answer! A trade deficit is when total exports minus total imports provides a negative result. Therefore¤ if imports increased faster than exports¤ this caused a trade deficit.)
- Their tax revenues were too high. (Wrong answer. A trade deficit is when total exports minus total imports provides a negative result. Tax revenues are irrelevant.)
A: Their imports increased faster than their exports.

Q: Question

During the post-war period, the restructuring of the global economy refers to the fact that:
- The Americans set up factories abroad. (Wrong answer. In the post-war period¤ the European economies were restructured based on the Marshall Plan¤ and around 1970¤ new countries achieved the status of newly industrialized countries. This is what is meant by the restructuring of the global economy.)
- Competition with other countries was different from before. (Correct answer! In fact¤ in the post-war period¤ the European economies were restructured based on the Marshall Plan¤ and around 1970¤ new countries achieved the status of newly industrialized countries. This is what is meant by the restructuring of the global economy.)
- The United States dominated and remained at a high level. (Wrong answer. In the post-war period¤ the European economies were restructured based on the Marshall Plan¤ and around 1970¤ new countries achieved the status of newly industrialized countries. This is what is meant by the restructuring of the global economy.)
- The U.S. dollar played a key role in international trade. (Wrong answer. In the post-war period¤ the European economies were restructured based on the Marshall Plan¤ and around 1970¤ new countries achieved the status of newly industrialized countries. This is what is meant by the restructuring of the global economy.)
A: Competition with other countries was different from before.

Question

Why is the decade 1990-2000 called "the American model"?

Entrez votre réponse ci-dessous.
Feedback: The period 1990-2000 is called "the American model" because during this period the American economy achieved good results that certain countries were inclined to imitate. In fact, companies and banks achieved impressive results, the unemployment rate was maintained at about 5%, and the level of inflation was also relatively low, at about 1.5%.
Feedback: The period 1990-2000 is called "the American model" because during this period the American economy achieved good results that certain countries were inclined to imitate. In fact, companies and banks achieved impressive results, the unemployment rate was maintained at about 5%, and the level of inflation was also relatively low, at about 1.5%.

Question

Point out two negative aspects of the American model. Explain.

Entrez votre réponse ci-dessous.
Feedback: The following are possible negative aspects: - The jobs created were paid less than jobs used to be paid. In fact, the text mentions that barely 35% of individuals who found a job earned a higher salary than before. So jobs were created, but with lower salaries. Also, these jobs were often insecure. - Americans had to work harder to maintain their income; they had to do overtime to maintain the same standard of living as before. - In certain sectors, the productivity gains were so insignificant that it was not possible to give workers wage increases. All these aspects were negative, as they did not allow workers to improve their working conditions.
Feedback: The following are possible negative aspects: - The jobs created were paid less than jobs used to be paid. In fact, the text mentions that barely 35% of individuals who found a job earned a higher salary than before. So jobs were created, but with lower salaries. Also, these jobs were often insecure. - Americans had to work harder to maintain their income; they had to do overtime to maintain the same standard of living as before. - In certain sectors, the productivity gains were so insignificant that it was not possible to give workers wage increases. All these aspects were negative, as they did not allow workers to improve their working conditions.

Q: Question

True or false?

Sélectionnez la bonne réponse pour chaque énoncé.

During the period 1960-1990, the American advantage deteriorated. The United States continued to be strong, but other industrialized countries provided strong competition.[...]
A: Vrai
Gap 1 offers: Vrai; Faux

Q: Question

True or false?

Sélectionnez la bonne réponse pour chaque énoncé.

At the beginning of the 1950s, the United States had difficulty recovering from World War II. The newly industrialized countries provided stiff competition.[...]
A: Faux
Gap 1 offers: Vrai; Faux

Q: Question

True or false?

Sélectionnez la bonne réponse pour chaque énoncé.

When Reagan took power at the beginning of the 1980s, he implemented Keynesian policies.[...]
A: Faux
Gap 1 offers: Vrai; Faux

Q: Question

True or false?

Sélectionnez la bonne réponse pour chaque énoncé.

The characteristics of the post-war period were creation of jobs that were often insecure, low inflation and low unemployment rates, increasing income gaps.[...]
A: Faux
Gap 1 offers: Vrai; Faux

Q: Question

True or false?

Sélectionnez la bonne réponse pour chaque énoncé.

During the period 1960-1980, military spending represented a higher percentage of government expenditures in the U.S. than in any other capitalist country. This partly explains why the United States lost its competitive edge.[...]
A: Vrai
Gap 1 offers: Vrai; Faux