Transcript Quiz - Kleykamp in Taiwan

A Simple In-Class Quiz on Day 2 Presentation
15 Multiple Choice Questions with Answers
____#1. What best describes Taiwan YoY annual economic
growth for the past few quarters.
a. steadily rising from 1% to 3%
b. steadily falling from 3% to 1%
c. stable at roughly – 0.50%
d. stable at roughly 0.50%
#1. Answer: (b) is best choice
____#2. YoY and QoQ growth in Taiwan differs
substantially. This is because
a. YoY is correct and QoQ is much more imprecise
b. QoQ will always show improvement
c. the economy fell shortly, but now is turning around
d. the two will become equal after appropriate revisions
YoY
QoQ
#2. Answer: (c) is best choice
____#3. From 2013 – 2015 government current expenditures
in Taiwan have been a very important factor in
supporting growth.
a. True
b. False
c. Impossible to Tell
#3. Answer: (b) is best choice
____#4. The “Red Supply Chain” refers to
a. Taiwan supply imports stopping (red)
b. (red) China beginning import substitution policies
c. A particularly well functioning supply chain
d. The supply chain to the US and EA (red hot)
____#5. Which of the following is TRUE?
a. The population in Taiwan has begun to decrease
b. Taiwan's TFR was lower in the 1950s than now
c. Taiwan needs a TFR of 2.1 to have stable population
d. Taiwan 's TFR is higher than Japan’s
Country
TFR 2014
Bosnia-Herzegovina
Hong Kong SAR
South Korea
MacaoSAR
Portugal
Taiwan
Andorra
Greece
Moldova
Poland
Romania
Singapore
Spain
Cyprus
Germany
Hungary
Italy
Japan
Malta
1.2
1.2
1.2
1.2
1.2
1.2
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.4
1.4
1.4
1.4
1.4
1.4
____#6. Long run production of real GDP is dependent on
population growth because of the need for
a. Technology and innovation
b.
Capital Resources
c. Labor Resources
d.
Human Capital
Labor = Human Effort
____#7. In order to boost productivity, we need
a. greater labor resources
b. more money for education
c. more schools
d. greater investment of all types
Taiwan needs to invest for the future …. but how
can it ensure investment will be strong?
____#8. An essential part of supply side economics is
reducing
a. wages
b. taxes on consumption
c. the total fertility rate (TFR)
d. the level of risk and uncertainty faced by business
____#9. We have been defining a bubble as
a. Wealth / Nominal GDP
b. Stock Price / PE Ratio
c. Velocity of Money
d. Capital / Labor
US Wealth / GDP = B …. What I call the Bubble
Source: Federal Reserve
4.4
____#10. The big problem of modern economic policy is
that it is trying to stimulate the economy by
a. lowering taxes
b. greening the economy
c. creating asset bubbles and hoping for wealth effects
d. lowering the level of debt in the economy
Stockman believes we are using
bubbles to try to stimulate the
economy…
____#11. Secular stagnation is when potential growth
of the economy is
a. higher than actual growth
b. lower than actual growth
c. lower than the potential in the past
d. higher than the potential in the past
Potential Output Growth is Falling – and not just in the US
____#12. Taiwan has very high housing prices because
a. incomes are high
b. government is trying to make housing affordable
c. implicit currency war with the US
d. increasing interest rates
____#13. The Rule of 72 tells us that if we have a growth rate
of 6% it will take roughly ______ _____ to
double the size of the economy
a. 15 years
b. 12 years
c. 10 years
d.
8 years
____#14. One of the benefits of OEM for Taiwan companies
is that
a. there are no taxes to be paid
b. they can supply industries and not just a company
c. they are paid a lot
d. they can remain small and be efficient
Flexibility
____#15. The big question for Taiwan is
a. will the "Go South" program work
b. will the US defend Taiwan in a war
c. how can Taiwan best deal with China
d. can Taiwan successfully beat China's economy