Question 1

Which type of policy would the World Bank's "China 2030" report deem LEAST likely to help China escape the middle-income trap?

A. Government protection of intellectual property rights

B. Ensure that markets can allocate resources efficiently

C. Human capital development

D. The government should directly subsidize research and development in key enterprises in leading industries

Question 2

What did Deng Xiaoping mean when he said that "It doesn't matter if a cat is black or white, so long as it catches mice"?

A. He was emphasizing China's constitutional protection of ethnic minority workers

B. The importance of effective anti-corruption measures

C. That bigger firms acquiring smaller firms (M&A) contributes to industrial economies of scale

D. That one should have a pragmatic attitude towards governance

Question 3

What can be said about government leaders in China?

A. While China's bureaucracy has managed to attract capable people, the social status of government officials remains low

B. Political leaders in other countries find it hard to understand how China has been unable to motivate local leaders to abandon rent seeking

C. Village head and village committee members are chosen by local government officials

D. A main objective of leaders at all levels of government has been economic growth

Question 4

What is the impact of Chinese village elections on local economic development?

A. Inequality increases due to the influence of interest groups

B. Public goods provision increases

C. It improves economic development, particularly in religiously divided communities

D. While elections are held, they are dominated by Communist Party members so have little real impact

Question 5

Which of the following about expected future long-term trends in China is TRUE?

A. The importance of industry for economic growth will increase

B. The share of the population older than 60 years of age is expected to start declining around 2050

C. Consumption and services as a share of GDP will increase

D. Economic growth will stabilize around 2% per annum assuming steady reforms and no major shocks

Question 6

Which of the following explanations for the increase in the savings rate in China may be REBUTTED?

A. Habit formation - consumption responds slowly to increases in income

B. Growing uncertainty about the future

C. Difficulty borrowing as much as desired

D. Changes in the proportion of the population that is in the working age, who save rather than spend

Question 7

What may the Chinese government do to encourage consumption-driven growth?

A. Increase deposit interest rates

B. Support the development of wealth management products

C. Provide more loan-based stimulus packages to enterprises

D. Increase spending on government services, social insurance and social protection programs

Question 8

Which of the following is NOT a trend in the Chinese labor market?

A. Wage growth among low skilled workers has been higher than wage growth among high skilled workers

B. The share of high-skilled workers in firms is increasing

C. While the wages of factory workers have been increasing, the number of such jobs has been decreasing

D. Firms deal with rising labor costs mainly through relocation