European Politics Kubicek 3rd Edition Chapter (10).doc

Kubicek, European Politics Chapter 10 Test Bank Questions Multiple Choice Questions 1. Thatcherism refers to a set of policies that a. seek to enhance the welfare state. b. are free market in orientation. c. seek to further European integration. d. were fundamentally undone by Tony Blair when he came into office. e. have been copied by Angela Merkel in Germany. Answer: b; Skill level: Understanding; Page reference: p. 269 2. One effect of Thatcherism was a. high inflation. b. Britain joined the euro. c. increased inequality. d. Britain ended state-controlled health care. e. the Conservatives lost elections throughout the 1980s. Answer: c; Skill level: Understanding; Page reference: p. 271 3. Thatcher is a world-historical figure because a. she led Britain to victory in the Falklands War. b. she led efforts to create the euro. c. she helped design the Maastricht Treaty. d. her approach to government’s role in the economy was adopted in other countries. e. she was a trailblazer for feminism. Answer: d; Skill level: Analysis; Page reference: p. 271 4. Tony Blair a. revoked all of Thatcher’s policies. b. defeated Thatcher in elections. c. led Britain into the eurozone. d. helped reform the Labour Party in Britain. e. is an example of a socialist leader. Answer d Understanding p. 271, pp. 280–281 Answer: d; Skill level: Understanding; Page reference: p. 271 and pp. 280-281. 5. In the 1990s and early 2000s, one of the most successful economic performers in Europe was which country? a. France b. Sweden c. Germany d. The Netherlands e. Ireland Answer: e; Skill level: Understanding; Page reference: p. 276-277 6. Compared to the United States, most European economies in the 1990s and early 2000s a. had higher growth and lower unemployment. b. had higher growth and higher unemployment. c. had lower growth and lower unemployment. d. had lower growth and higher unemployment. e. performed the same as the United States. Answer: d; Skill level: Analysis; Page reference: p. 272-274 7. Finland’s economic success can be attributed to a. EU aid. b. geography. c. natural resource endowments. d. the collapse of the USSR. e. its educational system. Answer e Analysis p. 278 Answer: e; Skill level: Analysis; Page reference: p. 278 8. Compared to Europe, the United States has a. more inequality. b. a lower trade deficit. c. more policies for economic redistribution. d. a higher GDP/per capita than all European countries. e. a larger state sector. Answer a Understanding p. 279 Answer: a; Skill level: Understanding; Page reference: p. 279 9. Why might poverty rates be lower in Europe than the United States? a. European countries tend to have less unemployment. b. The euro is worth more than the dollar. c. Europe pursues more economic redistribution. d. More Europeans go to college. e. Taxes are lower in Europe than in the United States. Answer: c; Skill level: Analysis; Page reference: p. 279 10. The data show that under Tony Blair and “New Labour” the British economy a. fared very poorly. b. did better than most European countries. c. relied more on state ownership. d. experienced high levels of inflation. e. became less integrated with the rest of the EU. Answer: b; Skill level: Analysis; Page reference: p. 281 11. Payroll taxes a. encourage job creation. b. discourage job creation. c. are lower in Europe than the United States. d. are a type of sales tax. e. are paid by high-income workers. Answer: b; Skill level: Understanding; Page reference: p. 282 12. One reason for Thatcher’s success was that a. Britain received a lot of aid from the EU. b. her reforms created new owners and shareholders. c. cuts in the welfare state tend to be popular. d. she worked with trade unions to preserve jobs. e. she appealed to the “have nots” in Britain. Answer: b; Skill level: Analysis; Page reference: p. 283 13. Since Angela Merkel was elected Chancellor a. she has pursued large tax cuts like Thatcher did in Britain. b. she has tried to position herself as a centrist. c. she has moved to reassert state control over the German economy. d. the German economy has fared very poorly. e. Germany has had to be bailed out by the EU. Answer: b; Skill level: Understanding; Page reference: p. 284 14. Sweden’s welfare state is focused on providing benefits to a. the poor. b. ethnic minorities. c. immigrants. d. old people. e. most of Swedish society. Answer: e; Skill level: Understanding; Page reference: p. 285 15. The EU’s plan to revive European economies is known as a. the Lisbon Treaty. b. the Lisbon Strategy. c. Agenda 2010. d. the Collectivist Consensus. e. the Social Market Economy. Answer: b; Skill level: Understanding; Page reference: p. 286 16. What appears to be true about public attitudes? a. Europeans embrace globalization. b. Europeans think globalization reduces inequality. c. Europeans are more likely to favor globalization than people in poorer countries. d. People in poorer countries are more likely to favor globalization than Europeans. e. Despite their problems, Greeks tend to be very pro-globalization. Answer: d; Skill level: Understanding; Page reference: p. 291 17. The cases of LEGO and IKEA are examples of a. the Lisbon Strategy. b. positive effects of globalization on the EU. c. negative effects of globalization on the EU. d. the social market economy. e. European companies becoming more “green.” Answer: c; Skill level: Understanding; Page reference: p. 288 18. Environmentalism a. is embraced only by the Greens. b. is embraced only by parties on the Left. c. is embraced across the political spectrum. d. is embraced by elites, but not by mass publics. e. is strongest in Eastern Europe. Answer: c; Skill level: Analysis; Page reference: p. 292 19. Since the fall of communism, a. Eastern European states have seen a decrease in unemployment. b. many Eastern European states have seen high rates of growth. c. Eastern European states have become richer than western European states. d. taxes are higher in Eastern Europe than in western Europe. e. there has been little foreign investment in Eastern Europe. Answer: b; Skill level: Understanding; Page reference: p. 293-294 20. Privatization is associated with a. sustainable development. b. post-communist reforms. c. the welfare state. d. post-materialism. e. the Lisbon Strategy. Answer: b; Skill level: Application; Page reference: p. 293 21. A lesson of post-communist Europe is a. economic reforms failed to produce growth. b. state control of the economy leads to growth. c. EU aid was wasted. d. the move to market-oriented policies has helped produce economic growth. e. Eastern Europe was negatively affected by globalization. Answer: d; Skill level: Analysis; Page reference: p. 294-296 22. Greece’s fundamental economic problem that led to crisis in 2010 was a. debt. b. inflation. c. high unemployment. d. high taxes. e. its adoption of the euro. Answer: a; Skill level: Understanding; Page reference: p. 267 23. An example of a policy of austerity is a. the Lisbon Strategy. b. tax cuts. c. the welfare state. d. cuts in state spending. e. sustainable development. Answer: d; Skill level: Understanding; Page reference: p. 290 24. Many European countries have tried to deal with the economic crisis by implementing policies of a. sustainable development. b. supranationalism. c. austerity. d. tax cuts. e. redistribution. Answer c Application p. 290, p. 299 Answer: c; Skill level: Application; Page reference: p. 290 and p. 299 25. The only country where voters voted directly on whether to join the euro was a. Great Britain. b. Sweden. c. Slovenia. d. France. e. Germany. Answer: b; Skill level: Understanding; Page reference: p. 289 1. Thatcherism has had a lasting impact in Britain. True Understanding p. 271 Answer: True; Skill level: Understanding; Page reference: p. 271 2. Little effort has been made to reform European welfare states. Answer: False; Skill level: Understanding; Page reference: pp. 280-285 3. The lesson of Finland is that free-market policies work best. Answer: False; Skill level: Analysis; Page reference: p. 278 4. The welfare state has made the Swedish economy uncompetitive globally. Answer: False; Skill level: Understanding; Page reference: p. 285 5. Post-communist states are now richer than western European states. Answer: False; Skill level: Understanding; Page reference: p. 293 6. The Lisbon Strategy favors wider adoption of austerity measures. False Application pp. 286–288 Answer: False; Skill level: Application; Page reference: p. 286-288 7. The Lisbon Strategy is designed to boost Europe’s global competitiveness. Answer: True; Skill level: Understanding; Page reference: pp. 286-288 8. Because of its economic crisis, Greece has been expelled from the eurozone. Answer: False; Skill level: Understanding; Page reference: p. 267 9. The Third Way is associated with moves to refashion the political Left. Answer: True; Skill level: Application; Page reference: p. 281 10. Thatcherism is associated with the Third Way. Answer: False; Skill level: Application; Page reference: p. 281 Essay Questions 1. In many European countries, the debt crisis has led to austerity measures; the United States has mostly taken a different approach, emphasizing forms of stimulus. What accounts for the difference? Which approach, do you think, makes more sense? 2. Since the beginning of the economic crisis in 2008, parties of the political Right have fared better than those on the Left. Why might this be the case? 3. The European welfare state is in trouble, but can it be saved? Is it too early to announce the death of the European welfare state? 4. In terms of economic policies and performance, what are differences between the United States and most European countries? What system, in your view, is superior? 5. Since this textbook was originally conceived, Ireland experienced a severe economic crisis. What do you think are the lessons of Ireland’s boom and bust?