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survey of economics

Questions and Answers of Survey Of Economics

9. What is privatization? How successful have attempts at privatization in LDCs been? What are some of the pitfalls of privatization?
8. What can LDCs do to improve the performance of their private sector?
7. Should the state use public enterprises to redistribute income?
6. Compare the performance of private and public sectors in LDCs.
5. Under what conditions, if any, would you advise LDCs to expand the share of their state-owned sector? Under what conditions, if any, would you advise LDCs to reduce SOEs?
4. Discuss the concepts of internal and external balances, and the adjustments LDCs should make to attain both balances.
3. Discuss the optimal sequence of adjustment and reforms by LDCs facing external crises. Is this sequence consistent with orthodox strategies advocated by the World Bank and IMF?
2. Discuss and evaluate the views of the critics of World Bank and IMF approaches to LDC adjustment.
1. Indicate and discuss the major World Bank and IMF programs for ameliorating LDC external equilibria and debt problems. Analyze the effectiveness of World Bank and IMF approaches to the LDC
18. Since the fall of communism in 1989–91, is there any role for governmental planning?
17. What advice would you give to the person in charge of development planning in a LDC with a large private sector?
16. What policies can planners undertake to encourage the expansion of private sector production?
15. What is an input–output table? Of what value is input–output analysis to a planner? What are some of the weaknesses of the input–output table as a planning tool?
14. Is China a good role model for LDCs that wish a market socialist economy?
13. What are the most important parts of the plan in a mixed or capitalist LDC?
12. Why is the use of complex macroeconomic planning models in LDCs limited?
11. Illustrate how the instrument variables used depend on the plan’s duration.
10. What instruments do planners use to achieve goals?
9. What are the roles of political leaders and planning professionals in formulating an economic plan?
8. Indicate the strengths and weaknesses of market socialism and worker-managed socialism in LDCs. How might a LDC avoid Yugoslavia’s economic problems of the 1980s?
7. What are the advantages and disadvantages of the market as an alternative to state planning? What economic systems could combine some of the advantages of both planning and the market? How
6. What problems occur when using widespread controls to influence private investment and production in a mixed or capitalist economy?
5. What problems have mixed economies had in using Soviet-type planning?
4. Why have so few LDCs been successful at detailed centralized planning?
3. What is the dirigiste debate? Indicate Lal’s characterization of the dirigistes and the response of Lal’s critics.
2. Why might a capitalist LDC want to plan?
1. Why did many political leaders of states gaining independence after World War II emphasize state planning?
24. Discuss the relative merits of the positions of liberals and the U.N. General Assembly concerning changes in the international economic order.
23. What changes do LDCs want in the international economic order? What progress has been made in implementing these demands? Are any of the demands inconsistent? Are any contrary to LDC interests?
22. What policies might an LDC undertake to reduce the premium for the black market for foreign exchange?
21. Should WTO/GATT encourage the expansion of regional integration among LDCs? If not, what alternatives would you recommend?
20. Discuss why LDCs have made so few gains in their attempts at regional economic integration.
19. Can an LDC attain all three of the following goals: stable exchange rates, free capital mobility, and national control over monetary policy? If not, which goals should have the highest priorities
18. Why may efforts to achieve a market-clearing exchange rate not improve economic efficiency and growth in a domestic economy that is otherwise not liberalized?
17. Under what circumstances might a LDC gain from depreciating its currency?What are some of the advantages of depreciation?
16. Indicate the nature of the present international exchange-rate system and how it affects LDCs.
15. What changes are needed in WTO agreements for LDCs to benefit from agricultural trade? From trade in services?
14. How much progress has the WTO/GATT system made in facilitating the trade expansion of LDCs since 1960? What changes would you recommend to the WTO/GATT system to expand LDCs’ gains from trade
13. What changes should LDCs make in trade policy to increase their gains from globalization?
12. What DC changes in tariff policies would aid LDC development?
11. Which LDCs have gained the most from participation in global production networks (GPNs)? What are the reasons for their gains? What strategies can nonGPN LDCs use to become a part of a global
10. Why are nominal exchange-rate changes inadequate when calculating currency depreciation or appreciation? Indicate how to calculate the real exchange rate.
9. Why is the nominal rate of tariff protection a poor gauge of the effective rate of protection for processed and manufactured goods?
8. Name and then characterize those LDCs that were most successful in expanding exports in the last quarter of a century or so.
7. Which is more effective in expanding LDC output and employment: export expansion or import substitution? What policies avoid biases against exports?
6. What are the major arguments for DC protection against LDCs? How valid are these arguments?
5. Do LDCs face historically deteriorating terms of trade?
4. Discuss whether a capital-poor LDC would better import capital-intensive goods from abroad, attract capital from abroad, subsidize and spur production shifting comparative advantage to these
3. Discuss the adequacy of using a model with three factors – land, labor, and capital – in determining comparative advantage. How would we extend the Heckscher–Ohlin model to explain LDC
2. Present the four arguments for tariffs you consider strongest and then indicate their weaknesses.
1. What are the major arguments for and against tariffs in LDCs? in DCs?
11. What impact has incurring major external debt by LDCs had on global and country income distribution? What impact have attempts to reduce the debt crisis had on income distribution?
10. What plan should the international community adopt to resolve the debt crisis? In your answer, consider plans similar to the Brady Plan, debt exchanges, the HIPC initiative, and other options, as
9. What changes are needed in sovereign debt restructuring?
8. What changes, if any, need to be made to the international financial architecture to spur growth and reduce poverty?
7. Assess the views of fundamentalists versus the Columbia school in their explanation for the Asian financial crisis and how to resolve it.
6. What are the causes of financial crises, such as the Asian crises?
5. To what extent does the IMF play the role of the lender of last resort? To what extent does the IMF follow Walter Bagehot’s rule?
4. What is capital flight? What relevance does it have for the debt problem? What can source and haven countries do to reduce capital flight?
3. Who are the major LDC debtors? Explain the reasons for the discrepancies between the leading LDC debtors and LDCs with the greatest debt burdens.
2. Define total external debt, debt service, and debt-service ratio? How useful is each of these indicators as a measure of the debt burden?
1. Discuss the nature and origins of the LDCs’ external debt problem. What impact has the debt crisis had on LDC development? On DCs?
13. In what way might inflation avert civil war or political violence?
12. Why was inflation so rapid in Latin America in the 1960s, 1970s, and 1980s?
11. What causes LDC inflation? Which causes are most important? How might LDCs reduce inflation?
10. Why did the LDC inflation rate increase from the 1960s to the 1980s? Why did the LDC inflation rate fall from the 1980s to the 1990s?
9. Why are military expenditures as a percentage of GDP high in low-income countries?
8. Why is health, social security, and welfare spending as a percentage of GDP less in LDCs than DCs? Why is health, social security, and welfare spending as a percentage of total government spending
7. What, if any, is the tradeoff between tax policies that reduce income and wealth concentration and those that increase capital formation?
6. What tax measures can LDCs take to reduce income inequality? To increase capital and enterprise?
5. Indicate the benefits and difficulties associated with using value-added taxes in developing countries.
4. Why are direct taxes as a percentage of GDP generally lower, and indirect taxes as a percentage of GDP generally higher, for LDCs than DCs? Why is heavy reliance on indirect taxes as sources of
3. What are the goals of LDC tax policy? What obstacles do LDCs encounter in reaching their tax policy goals?
2. Why are taxes as a percentage of GNP generally lower for LDCs than for DCs?
1. What prevents LDC use of monetary, fiscal, and incomes policies from attaining goals of output and employment growth and price stability?
13. In what way might inflation avert civil war or political violence?
12. Why was inflation so rapid in Latin America in the 1960s, 1970s, and 1980s?
11. What causes LDC inflation? Which causes are most important? How might LDCs reduce inflation?
10. Why did the LDC inflation rate increase from the 1960s to the 1980s? Why did the LDC inflation rate fall from the 1980s to the 1990s?
9. Why are military expenditures as a percentage of GDP high in low-income countries?
8. Why is health, social security, and welfare spending as a percentage of GDP less in LDCs than DCs? Why is health, social security, and welfare spending as a percentage of total government spending
7. What, if any, is the tradeoff between tax policies that reduce income and wealth concentration and those that increase capital formation?
6. What tax measures can LDCs take to reduce income inequality? To increase capital and enterprise?
5. Indicate the benefits and difficulties associated with using value-added taxes in developing countries.
4. Why are direct taxes as a percentage of GDP generally lower, and indirect taxes as a percentage of GDP generally higher, for LDCs than DCs? Why is heavy reliance on indirect taxes as sources of
3. What are the goals of LDC tax policy? What obstacles do LDCs encounter in reaching their tax policy goals?
2. Why are taxes as a percentage of GNP generally lower for LDCs than for DCs?
1. What prevents LDC use of monetary, fiscal, and incomes policies from attaining goals of output and employment growth and price stability?
13. In what way might inflation avert civil war or political violence?
12. Why was inflation so rapid in Latin America in the 1960s, 1970s, and 1980s?
11. What causes LDC inflation? Which causes are most important? How might LDCs reduce inflation?
10. Why did the LDC inflation rate increase from the 1960s to the 1980s? Why did the LDC inflation rate fall from the 1980s to the 1990s?
9. Why are military expenditures as a percentage of GDP high in low-income countries?
8. Why is health, social security, and welfare spending as a percentage of GDP less in LDCs than DCs? Why is health, social security, and welfare spending as a percentage of total government spending
7. What, if any, is the tradeoff between tax policies that reduce income and wealth concentration and those that increase capital formation?
6. What tax measures can LDCs take to reduce income inequality? To increase capital and enterprise?
5. Indicate the benefits and difficulties associated with using value-added taxes in developing countries.
4. Why are direct taxes as a percentage of GDP generally lower, and indirect taxes as a percentage of GDP generally higher, for LDCs than DCs? Why is heavy reliance on indirect taxes as sources of
3. What are the goals of LDC tax policy? What obstacles do LDCs encounter in reaching their tax policy goals?
2. Why are taxes as a percentage of GNP generally lower for LDCs than for DCs?

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