SUBJECT: MANAGEMENT ECONOMICS

TOPIC: ASIAN DEVELOPMENT AND FINANCIAL CRISIS

CHOOSE THE CORRECT ANSWERS

4:?" 4F. 10-49 9 BEEQIEn- 1. The following is true about 2 points agriculture as experience in Asia EXCEPT: * O a. Agriculture is a source of food 0 b. A source of labor supply 0 c. A source of skills needed by industries d. A source of capital 2. Experience in many 2 points countries says that * O a. Manufacturing rises faster than agriculture b. Industry rises faster than manufacturing 0. Real growth occurs when 0 O agriculture grow before 0 manufacturing and industry d. The share of agriculture to GDP decHne III E) u 4:?" 4F. 10-49 9 BEEEEEn- 3. Which is false about 2 points agriculture in the early stage of industrial development? * O a. Agriculture remains dormant O b. Industrial growth and agricultural growth can go together 0 0. Rapid growth in agriculture is needed for sustainable growth d. Rapid growth in the next 0 industrialized economies is largely due to strength and dynamism in agriculture 4. The tendency of agriculture 2 points to contribute larger share to GDP is explained by * O a. Law of increasing return 0 b. Engel's law 0 0. Law of demand 0 d. Say's law I\" E) u \"F. 4F. 10-49 9 Blgfzsh 5. The economic \"miracle\" in 2 points Asia beginning 1970's is attributable to: * O a. Rapid growth in agriculture 0 b. Rapid growth labor-intensive manufacturing 0 0. Rapid growth in foreign exchange 0 d. Rapid out-migration of workers to urban industrialized centers 6. Despite the monsoon 2 points climate, Asia rapidly grew due to: * O a. Rapid technological change 0 b. Rapid growth in manufacturing 0 0. Introduction of irrigation and high- yielding agricultural crops 0 d. Rapid inflow of foreign capital III E) u 45 II \"F. 10:49 9 G) 01.33%\"??? 7. Which have not helped 2 points much in Asian agriculture? * O a. Land distribution to tenants 0 b. Land occupancy and research 0 0. Improvement in land use 0 d. Improvement in tenancy rights 8. Which does not contribute 2 points to Asian financial crisis? * O a. Inadequate fund management 0 b. Restriction of entry of foreign banks 0 c. Current account deficit 0 d. Heavy reliance on short term loans 0 e. Sudden fall in stock prices 0 f. Overvalued exchange rate I\" E) u \"F. '3 10:49 9 G) WEEQE'EIEI' 9. Which is false about current 2 points development in Asia? * O a. Ability to attract foreign investment b. Strength in East Asia is due to rapid growth in China and fall in poverty rate d. General fall in prices just before 0 c. Acceleration of economic growth 0 the financial crisis 10. Which still needs further 2 points improvement to avoid another Asian financial crisis? * O a. Asian currencies still pegged to US dollar 0 c. Exchange rate realignment O b. Macroeconomic policy changes 0 d. All of the above A '3 III E