POSC 215Part III

Kesselman, pgs. 139-148, C:CP14-15

POLITICAL ECONOMY AND DEVELOPMENT

True/False Questions

1. German economic policy after World War II wascomplimentary and supportivein critical decisions of industry and the private sector rather than heavy-handed and over-regulatory. True or False

2. Since the creation of the EU, Germany has lost much of its international market share in trade and is realizing that the high wages and high benefits that it provides its workers must be scrapped for it to survive.True or False

3. By the late 1940s, the idea of a strong German central state was discredited for two reasons: the excesses of Nazism and the American occupation authorities’ confidence in the private sector.True or False

4. Currently, Germany has no minimum wage like elsewhere in Europe but promises to introduce one in the near future. True or False

5. Similar free-market economies throughout Europe and the United States, Germany will slash wages to maintain market share rather than preoccupy itself with product quality. True or False

6. Rather than seek breakthroughs in exotic technologies that take years to commercialize, German firms adapt existing technologies to boost already competitive sectors.True or False

7. Most Germans are shocked to hear that many Americans think global warming is a matter of opinion rather than a scientific certainty. True or False

8. By keeping skilled workers on the payroll, with some help from the government and taxpayers, business was able to get a jump on the economic recovery after the 2009 slump.True or False

9. Free market supporters are correct in accusingGermany’s social market economy of a failure to create sufficient jobs.True or False

10. Ironically, it was the SPD-Green (left-oriented) government of Germany that sponsored far-reaching changes that made labor law, pension policy, and unemployment insurance less generous to workers.True or False

11. The German military in Afghanistan have won the respect and admiration of other NATO forces for their courage, professionalism, and success in the field of battle and technical support.True or False

12. The costs of unification, adjustment to the EU, and globalization have begun to challenge Germany’s high standard of living and well-paid work force.True or False

13. With reunification with East Germany, toleration and acceptance of ethnic minorities has been ameliorated because communist ideology tends to make people more compassionate. True or False

14. It is far harder for American women in the U.S. to achieve positions of power and responsibility than it is for their German counterparts.True or False

15. Germany is a resource-poor but highly industrialized country, which means it must strive for maximum efficiency.True or False

16. The major German parties have roughly similar agendas in many areas of environmental policy, though they disagree a lot about the pace with which to require changes.True or False

17. The international community has accused Germany of benefiting from a strong world economy while taking on too few political and military responsibilities. True or False

18. Germany remains the economic anchor of the EU, while Germany’s membership in the EU has enabled it to avoid taking on political responsibilities, such as UN peacekeeping. True or False

19. The higher-valued euro still makes it difficult for the export-oriented German economy to sell its goods in the Americas or Asia. True or False

20. If anything, the euro made it much more difficult for countries like Greece, Ireland, and Portugal to borrow, assuring a faster economic recovery in 2010 and 2012 for Germany. True or False

21. More than most countries, Germany’s economic fortunes are tied to globalization.True or False

Multiple Choice Questions

1. Germany exports as much as the following country in spite of the fact that it has one-fourth its population: a) China, b) India, c) Japan, d) the United States.

2. Laissez-faire economic policy refers to: a) freeing the market from the state, b) effective regulation over the economy, c) identifying industrial polluters, d) taxing manufacturers that exploit their workers.

3. In the German system, laws that set broad parameters for economic behavior but also require

subsequent elaboration, often through formal agreements between employers and employees. b) state-led principles, b) framework regulations, c) limited policy directives, d) dual federalism. OK, Slight Revision,

4. Why is the German governmental and economic system able to avoid much social upheaval and protest? a) it is a state run centralized system that still maintains authoritarian characteristics, b) it is illegal to challenge political and economic leaders based on historical tradition and laws, c) the system is flexible and encourages private actors to cooperate to devise their own solutions rather than using coercive measures, d) uniformity is key and efficiency is expected with workers fearful of challenging management.

5. What has enabled Germany to produce high-quality goods for decades? a) the government provides significant subsidies to private industry, b) the government aggressively controls the economy, establishing strict rules from which industry operates, c) a truly free market system exists that allows industry to pay low wages and limit production costs, d) there are extensive public vocational programs tied to the private sector to assure a skilled labor pool. Revised,

6. A system that aims to combine the efficiency of market economies with a concern for fairness for a broad range of citizens: a) communism, b) social market economy, c) utilitarianism, d) democratic centralism.

7. Which of the following are responsible for much of Germany’s economic policy-making? a) semipublic institutions, b) the central government, c) the political parties, d) the lander.

8. The social market economy is part of the broader system inwhich national and state governments delegate certain policy-making authority to private and semipublic institutions: a) democratic centralism, b) public bureaucracies, c) governmental contagion, d) democratic corporatism.

9. Refers to representatives of workers and trade unions in Germany to obtain voting seats on the supervisory boards of directors of firms with 2,000 or more employees: a) integration, b) co-determination, c) seminal decision-making, d) constructive interaction.

10. 16. The following concentrate on social, environmental, and personnel matters: a) works councils, b) labor unions, c) social networks, d) state agents.

11. In Germany, what happens to the roughly 60 percent of German young adults who do not go to a university? a) most of them will enter a three-year apprenticeship program tied to some company and school, b) most will enter the military where they will develop the necessary skill-set to compete in the job market, c) most will probably work in the multitude of small businesses directed by a network of family and friends, d) most are on their own, with minimal to no supervision or direction.

12. Manufacturing represents what percent of the German economy? a) one tenth, b) one fifth, c) one fourth, d) one third.

13. Where does Germany’s competitive advantage stem from when it comes to competing for international market share? a) by keeping wages low, b) by raising product quality, c) by shipping much of its manufacturing base overseas, d) by relying heavily on government to subsidize manufacturers.

14. The unemployment rate for the least skilled workers in East Germany is about: a) 15 percent, b) 20 percent, c) 26 percent, d) 40 percent.

15. A bargaining system in which important policies are established and often carried out with the participation of trade unions and business associations: a) democratic corporatism, b) social integration, c) channeled industrial-employee integration, d) assimilated collectivism.

16. How have German firms been able to turn a profit in spite of facing relatively high costs in wages, taxes, social contributions, and investments in apprenticeships and technology development? a) by stealing trade secrets and technology from foreign competitors, b) by underselling German manufactured goods in the global market at a loss and getting subsidized later by government, c) by making workers more productive , d) by maintaining an artificially low exchange rate.

17. In the early 1990s, the Kohl government badly misjudged the costs of unification, which, by the early 1990s, was consuming about what percent of Germany’s national budget? a) 9 percent, b) 13 percent, c) 17 percent, d) 20 percent.

18. In 2013, based on a BBC poll of 25,000 people worldwide, which country had the highest rating for influencing the world of 59 percent of mostly positive? a) Egypt, b) Japan, c) Germany, d) the United States.

19. Why do Germans display a much lower display of pride in their military (42 percent) than the United States (87 percent)? a) it’s a country deeply skeptical of the use of force, b) there have been far too many scandals and waste in the Bundeswehr, c) parents want to see their children attend university rather than serve in a decrepit, inferior institution, d) the German government has intentionally prevented little financial support, believing that public resources are better spent elsewhere.

20. Which large ethnic minority originated in Germany from the Gastarbeiter program of the 1960s? a) Serbs, b) Turks, c) Croatians, d) Armenians.

21. What is the poverty rate of Turkish families living Germany? a) 10 percent, b) 17 percent, c) 29 percent, d) 40 percent.

22. What is the purpose of the EU’s 2012 blue card scheme and its impact on Germany? a) allows highly skilled foreigners from outside the EU to live and work in Germany, b) prevents hacking of personal identification cards used to travel throughout Germany, c) similar to food stamps in the U.S., provides poor immigrants subsidies to buy groceries, d) a temporary credit card to pay for health care throughout the country.

23. By 2008, what was the participation rate of women in the workforce in Germany? a) 49 percent, b) 68 percent, c) 72 percent, d) 80 percent.

24. In Germany, Energiewende refers to: a) A policy shift from energy consumption of fossil fuels and nuclear to sustainable sources, b) Using wind energy as a substitute to hydro-electric, c) Providing solar panels to indigent Germans, d) Applying hydro-electric power to areas of Germany that have no alternative.

25. Why would the Russia-Ukraine crisis likely to spur deeper efforts for energy efficiency in Germany? a) Because there many Ukrainians living in Germany, b) Historically, a sizeable majority of Germans have annually used Ukraine as tourist stop, c) A sizeable number of German manufacturers have shifted operations to Ukraine, d) Germany is heavily dependent on fossil fuels from Russia.

26. The seventeen members of the European Union who share a common currency, the euro: a) European Assembly, b) European States of the Union, c) the Union of Europe, d) Eurozone.

Fill-in Questions

1. By Germany having a highly-skilled blue-collar work force has resultedin them:

a) being able to afford expensive _____,

b) obtaining high-quality ______care, and

c) enjoying ____ weeks of paid ______each year.

2. Until the 1990s, Germany provided generous social benefits to almost everyone, including:

a) support for public ______,

b) subsidies for the _____,

c) virtually free higherand vocational ______,

d) and a comprehensive ______state.

3. Germany has specific institutional arrangements when it comes to how its economy functions and how it impacts its international position today which includes:

a) worker and union participation in ______,

b) tightly organized ______,

c) and the elaborate system of ______training.

4. What did the euro promise to provide for both Germany and its EU members?

a) It promised to ______European neighbors from weakening their ______at Germany’s expense.

b) In return, Germany’s neighbors hoped to suffer less ______,

c) and more ______capital.

Answers

True/False Questions

1. True

3. True

5. False

7. True

9. False

11. False

13. False

15. True

17. True

19. False

21. True

Multiple Choice Questions

1. d

3. b

5. d

7. a

9. b

11. a

13. b

15. a

17. d

19. a

21. d

23. b

25. d

Fill-in Questions

1. a) cars, b) medical, c) six, vacation

3. a) management, b) capitalism, c) apprenticeship

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