Practice Final

for Economics 115

Fall 1996

Identifications (1/4 of exam; one sentence):

1. Dependency theory

2. Collective farm

3. Great Leap Forward

4. GOSPLAN

5. Oil shock

6. Expectational Phillips Curve

7. Productivity slowdown

8. Gold-exchange standard

9. Supply-side economics

10. Rational expectations

11. Marshall Plan

12. Zaibatsu

13. Reparations

14. Lebensraum ("living space")

15. Euro-communism

16. Monetarism

17. SPD ("Socialist Party of Deutschland")

18. Credit Anstalt

19. Federal Reserve Act

20. Montagu Norman

Short Answers (1/4 of exam; one paragraph):

1. Why does Milton Friedman believe that "monetary forces" caused the Great Depression?

2. What were the principal aims of the Marshall Plan?

3. In what countries was the Great Depression most severe?

4. What are the principal missions of the International Monetary Fund (IMF)?

5. Is the world's economy more or less integrated across nations today than in 1914?

Short essays (1/4 of exam; do both):

1. What were the principal causes and consequences of the post-1973 slowdown in worldwide economic growth?

2. Which regions of the world have seen their economies grow the fastest since 1890? Why have the less successful regions lagged behind?

Long essay (1/4 of exam):

George Orwell wrote The Road to Wigan Pier to explain what the Great Depression had done to the people of England, and why it had turned him into a socialist--into a believer that the capitalist market economy could not be reformed, and needed to be replaced by a new and different system. Take either the position that Orwell was right or the position that Orwell was wrong. Detail how Orwell's arguments and conclusions need to be modified in light of what has happened to the world economy since Orwell wrote in the mid 1930s.

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