Which of the following is NOT a criticism of international institutions such as the IMF, the World Bank, or the WTO?
A) They violate national sovereignty by imposing unwanted domestic policies.
B) They fail to understand the effects of their policies on the vulnerable.
C) Their decision-making is biased in favor of underdeveloped nations.
D) They ignore potentially large adjustment costs for developing nations of implementing their policies.
Question 2 - President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging
A) large inflows of foreign capital.
B) large increases in domestic savings.
C) an expansion of import substitution industrialization policies.
D) more government ownership of industrial firms.
Question 3 - If a large percentage of economic activity in developing countries is unrecorded, then the countries are likely to rely on which of the following taxes to provide government revenue?
A) Sales taxes
B) Property taxes
C) Income taxes
D) Tariffs
Question 4 - Which of the following defines a soft peg?
A) An exchange rate determined by the market
B) An exchange rate that fluctuates within a set band
C) An exchange rate that is not allowed to vary
D) An exchange rate that is backed by gold
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