QUESTION 1

Which form of keiretsuis commonly criticized by foreign nations as unfair to competitors?

	A.	Horizontal keiretsu
	B.	Vertical keiretsu

QUESTION 2

Which of the following is NOT an advantage of the Japanese economic system?

	A.	Keiretsuallows firms to benefit from long-term contracts with suppliers and buyers
	B.	High immigration rates encourage a dynamic labor market
	C.	Long-term financing helps firms avoid short-term market pressures
	D.	Lifetime employment builds worker loyalty and improves ties between workers and management

QUESTION 3

Which Japanese system encourages communication from lower levels in the firm to higher management?

	A.	Zaibatsu
	B.	Kanban
	C.	Ringi-sho
	D.	Nemawashi

QUESTION 4

At the time our book was written,90percent of Japan's trade surplus with the US came from four sectors. Which of the following sectors is NOT one of these four surplus sectors?

	A.	Automobiles
	B.	Semiconductors
	C.	Medical equipment
	D.	Consumer electronics

QUESTION 5

According to our authors, what is the greatest challenge facing the Japanese economy?

	A.	Excessive wage inequality
	B.	High tariffs on imports and exports
	C.	Declining population
	D.	Declining life expectancy

QUESTION 6

In which decade did the French economy experience its highest growth rates?

	A.	1950's
	B.	1960's
	C.	1970's
	D.	1980's

QUESTION 7

Who developed the concept of dirigismethat has been an important component of French economic planning?

	A.	King Louis XIV
	B.	Marshall Petain
	C.	General deGaulle
	D.	Jean-Baptiste Colbert

QUESTION 8

France has been more open to free trade since 1946that it was prior to 1946.

True

False

QUESTION 9

Dirigismemeans the same thing as laissez-faire.

True

False

QUESTION 10

What is the "French puzzle"?

	A.	Socialist governments in France have tended to support privatization of national industries.
	B.	France has relatively low union membership rates but more labor disturbances and strikes than other nations.
	C.	French national governments rely on more central planning over time while most governments have reduced central planning and rely on more market capitalism.
	D.	French people tend to be unhappier than residents of other nations who enjoy comparable levels of real per capita income.

QUESTION 11

Which of the following economic characteristics represents a key distinction between Japan and France?

	A.	The role of regional planning
	B.	The share of the economy controlled by the state sector
	C.	The role of industrial policy for particular industries
	D.	All of the above

QUESTION 12

One strong criticim of indicative planning is that state planning experts are no better at forecasting external shocks than private business owners and managers.

True

False

QUESTION 13

Which of the following statements about French indicative planning is true?

	A.	Over time, the plans focused less on microeconomic issues and more on macroeconomic issues, especially as the country focused on EU integration and the adoption of the euro.
	B.	Indicative planning is only focused on plans for individual markets and regional investment.
	C.	Indicative planning was ended by French government leaders in the 1980's.
	D.	Dirigisme means "micro economy" and the indicative plans only refer to individual markets.