Evaluate each statement in this part with TRUE, FALSE, or UNCERTAIN. Provide a brief but clear explanation for your answer. (5 marks each, Total 5*10= 50 marks)

Question 1

There are no adverse consequences of the rise of the Asian middle class.

Question 2

An exchange rate that is set by official government policy is called a fixed exchange rate.

Question 3

It is not possible for Asian countries to overcome the middle-income trap.

Question 4

The Japanese economy was a bubble economy during the 1980s.

Question 5

If everyone receives the same income, the Gini coefficient of income would be 1.

Question 6

Abenomics was promoted to take Japan's economy out of a period of minimal growth and high inflation.

Question 7

During the pre-reform period, collective agriculture increased the agricultural sector productivity in China.

Question 8

The portfolio and short-term capital flow are more important in India and it makes India less vulnerable to external shocks that affect global interest rates such as a US interest rate increase. 5

Question 9

From the early 1950s, the Chinese govt. pursued agricultural development strategy.

Question 10

Schumpeter considered entrepreneurs as innovators.

Question 11

Asian economies are in a better position to deal with the global financial crisis of 2008 than they were in the 1997 Asian crisis.