QUESTION 1

Germany traditionally runs a trade surplus with the rest of Europe, which does not help Greece and other EU nations with debt problems to recover because it is harder for these nations to repay their debts by selling goods to Germany.

True

False

QUESTION 2

Under the Eurosclerosis theory, unemployment rates in most European economies are higher than unemployment in Japan and the US due to restrictive labor market policies.

True

False

QUESTION 3

According to our authors, the Hartz labor market reforms helped to spark the economic recovery that allowed Germany to grow faster than its neighbors after 2005.

True

False

QUESTION 4

Which of the following factors reduced demand for East German goods in the years after reunification?

A.Demand from other countries in Eastern Europe declined sharply

B.New goods from Western markets became available and competed with East German goods

C.Both of these demand factors affected East German sellers

QUESTION 5

Which of the following was NOT a problem that hampered economic growth in East Germany after reunification?

A. Lower labor productivity

B. Excessively low interest rates

C. More environmental problems

D. Lower levels of available capital