Econ 213 (A1) Final Examination (version A) The University of Alberta SPRING 2013 S. Beesley YOU WRITE THIS EXAM IF YOU COMPLETED THE MIDTERM! Name_________________________________________ Student Number___________________________________ This exam has 33 multiple-choice questions. Please mark your answers on the scantron sheet. Please put your name and student number on this page, and the scantron, immediately if not sooner. There are also 3 written questions of 11 marks each, making the overall exam 66 marks in 120 minutes. Please allocate your time accordingly! SECTION A 33 MARKS MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The article about Africa entitled "Bulging in the Middle" noted that there were four causes of Africa's rise. Three of the four are listed here - which one does not belong? A) technology having large effects B) the right kind of population growth C) better governance and economic management D) greatly increased agricultural productivity 2) There is a messy, intermittent, and sometimes sadly violent North-South divide across central Africa between A) Christian and animist (local African) religions B) Sunni and Shiite Moslems C) oil-rich states and the others D) Muslim and Christian terrritories 3) Nigeria has lost a very great deal of money to corruption and incompetence. The amount involved is, very roughly: A) Hundreds of millions of dollars B) Hundreds of billions of dollars C) Tens of millions of dollars D) About 2.5 to 3.0 trillion dollars 4) Given the large debt increases in the last 20 years, why have we not seen even more sovereign defaults among LDCs (and, for that matter, OECD countries)? A) high real interest rates B) the pattern of declining interest rates C) The successful implementation of austerity programs and taxes on the well-off in LDCs D) The massive debts have been offset by huge debt forgiveness totals 5) The IMF was accused in one article of hypocrisy because it advocated A) austerity in rich countries and spending in poor ones B) austerity at all times and places C) austerity in poor countries and spending in rich ones D) printing money when necessary to kick-start dormant economies 6) Alexander Sack wrote that debt was odious when A) The funds originally loaned had not been used in "the interests of the State." B) The interest rates charged were so high as to be odious C) A significant fraction of the money had been stolen by corrupt officials D) Repaying that debt would result in significant social hardship 7) Easterly established that more indebted countries were characterized by all of these except A) A lower black market premium B) Smaller bank systems C) A faster rate of asset sales D) New borrowing that exceeded any debt relief given 1 8) Easterly pointed out that in some governments, the divisions across ethnic groups result in a version of the A) negative externality prob ...

1. Econ 213 (A1) Final Examination (version A) The
University of Alberta SPRING 2013 S. Beesley
YOU WRITE THIS EXAM IF YOU COMPLETED THE
MIDTERM!
Name_________________________________________
Student Number___________________________________
This exam has 33 multiple-choice questions. Please mark your
answers on the scantron sheet. Please put your name and
student number on this page, and the scantron, immediately if
not sooner.
There are also 3 written questions of 11 marks each, making the
overall exam 66 marks in 120 minutes.
Please allocate your time accordingly!
SECTION A 33 MARKS
MULTIPLE CHOICE. Choose the one alternative that best
completes the statement or answers the question.
1) The article about Africa entitled "Bulging in the Middle"
noted that there were four causes of Africa's rise. Three
of the four are listed here - which one does not belong?
A) technology having large effects B) the right kind of
population growth
C) better governance and economic management D) greatly
increased agricultural productivity
2) There is a messy, intermittent, and sometimes sadly violent
North-South divide across central Africa between
A) Christian and animist (local African) religions B) Sunni and

2. Shiite Moslems
C) oil-rich states and the others D) Muslim and Christian
terrritories
3) Nigeria has lost a very great deal of money to corruption and
incompetence. The amount involved is, very
roughly:
A) Hundreds of millions of dollars B) Hundreds of billions of
dollars
C) Tens of millions of dollars D) About 2.5 to 3.0 trillion
dollars
4) Given the large debt increases in the last 20 years, why have
we not seen even more sovereign defaults among
LDCs (and, for that matter, OECD countries)?
A) high real interest rates
B) the pattern of declining interest rates
C) The successful implementation of austerity programs and
taxes on the well-off in LDCs
D) The massive debts have been offset by huge debt forgiveness
totals
5) The IMF was accused in one article of hypocrisy because it
advocated
A) austerity in rich countries and spending in poor ones
B) austerity at all times and places
C) austerity in poor countries and spending in rich ones
D) printing money when necessary to kick-start dormant
economies
6) Alexander Sack wrote that debt was odious when
A) The funds originally loaned had not been used in "the
interests of the State."
B) The interest rates charged were so high as to be odious

3. C) A significant fraction of the money had been stolen by
corrupt officials
D) Repaying that debt would result in significant social
hardship
7) Easterly established that more indebted countries were
characterized by all of these except
A) A lower black market premium
B) Smaller bank systems
C) A faster rate of asset sales
D) New borrowing that exceeded any debt relief given
1
8) Easterly pointed out that in some governments, the divisions
across ethnic groups result in a version of the
A) negative externality problem B) natural monopoly problem
C) common property problem D) prisoner's dilemma
9) The divisions cited in Easterly's Chapter 13 could be across
ethnic groups, or just across wealthy vs. poor,
landlords vs. tenants, etc. Easterly argued that forcible
redistribution lowers growth, but your instructor noted
that the tremendous growth in East Asia began with
A) the imposition of very progressive tax systems that hit the
rich hard
B) land reforms that made landlords sell at below market value
C) a large increase in conditional cash transfers to help those at
the bottom
D) nationalization of industrial groups such as Japan's
"Keiretsu."
10) The faction-driven overspending mentioned in the

4. discussion of E Ch 13 tends to be made even worse by all
these factors except:
A) Old people vote
B) Young people don't vote much
C) Those who would gain from spending tend to represent a
more concentrated group than taxpayers as a
whole
D) Autocratic, one-party rule
11) According to Easterly, government policies that can kill
growth include everything BUT:
A) high budget deficits B) merit-based hiring for civil service
jobs
C) trade restrictions D) excessive taxes on winners
12) Public goods must be produced by government because no
private entity will pay for them, barring altruism.
Public goods are described as being:
A) Rival in use and excludable B) non-rival in use and
excludable
C) Non-rival in use and non-excludable D) Rival in use and
non-excludable
13) Clare Lockhart mentioned all of these errors or bad
decisions by the "aid community" in Afghanistan EXCEPT
A) assuming locals were incapable of some work B) overpaying
for local NGO labour
C) almost ignoring the existing civil service D) encouraging a
government budget process
14) Jeffrey Sachs feels that many poor countries are stuck in a
poverty trap, and that the solution for it is
A) Land reform, basic health care, improved governance

5. B) a one-time injection of aid, targeted to roads, bridges, and
other transport infrastructure
C) a one-time injection of aid, targeted to overcome certain
threshold levels of capital, intellectual capital,
basic governanace, etc.
D) a guaranteed annual income scheme
15) The aid figures we studied showed that in general,
________________ received too little official development
assistance, while _______________ seemed to get too much
(all on a per-capita basis).
A) Oil exporting states, Sub-Saharan Africa B) Sub-Saharan
Africa, Oil exporting states
C) Sub-Saharan Africa, East Asian states D) Sub-Saharan
Africa, Central Asia
2
16) Dambisa Moyo wants to put an end to:
A) cash or cheap loans flowing to LDC governments from other
governments and multilateral institutions
B) food or medical aid delivered during times of crisis (e.g.
earthquakes, tsunamis, etc.)
C) exploitative foreign direct investment
D) the work of NGOs such as Oxfam, Save the Children and the
Foster Parents' Plan
17) One critic of the Millenium Village project noted that when
evaluating the effectiveness of the effort,
A) Benefits were overmeasured
B) It was unclear how persistent the project's benefits would be

6. at village level
C) The controls were selected in a potentially biased manner
D) Costs were undermeasured
18) The current trade dispute is about many things, but the
biggest area of disagreement is
A) manufactured goods B) agriculture
C) investment D) services
19) The Cato institute speaker argued that the rich world should
A) cut tariffs unilaterally for their own benefit
B) leave tariffs at their present level, unless China and other
LDCs agree to limit the taking of intellectual
property
C) raise tariffs to counter the undervalued Chinese currency
(among others).
D) raise tariffs to raise cash, in order to cover the massive
budget deficits
20) The government of Ghana appeared to
A) collect a very significant gold royalty and very little in
corporate tax
B) collect a very minimal gold royalty and very little in
corporate tax
C) collect a minimal gold royalty and a moderate amount of
corporate tax
D) collect a cost-sensitive gold royalty
21) The government of one West African country recently
changed the royalty on their biggest foreign exchange
earning export from ________ to ________ and then to
_________percent
A) 12, 16, 13 B) 3, 6, 5 C) 3, 5, 6 D) 22, 32, 26

7. 22) Royalty rate schemes should be designed to do all of the
following except
A) protect the seller against locking in at a low price
B) allow legitimate cost increases to increase the per-unit
royalty
C) protect the buyer against locking in at a high price
D) allow legitimate cost increases to reduce the per-unit royalty
23) China has made some deals in Africa in which they provide
__________ in return for oil or other resources
A) governmental advice and technical staff B) rare earth
minerals
C) completed infrastructure D) their own currency, the Yuan
24) China has seemingly paid higher than historic prices for oil
and other resources recently. According to your
instructor, China does this for all of the following reasons
except:
A) A desire to lock up necessary resources
B) Their doubts regarding the theory of "peak oil"
C) A desire to convert US-dollar denominated assets to anything
else
D) A belief in rapid future economic growth in China and other
big LDCs
3
25) The Oildrum article that reviewed reserve issues pointed out
that, 30% of the way into the time period being
studied, only about _____________ of the expected amount of
oil had been found.
A) 5-6% B) 8-10% C) 12-13% D) 17-20%

8. 26) When oil prices ran up to a very high level in the last
decade, the international oil majors
A) Made less income because of this increase in the cost of
their most important input
B) Made about the same annual income because they just passed
on the cost increase to their customers
C) Significantly reduced production in response to that hike,
since customers bought much less
D) Made very high incomes, by increasing the prices of fuels to
more than cover the increased cost of oil
27) The Japanese land reform ended up providing land to the
former sharecropping farmers very cheaply primarily
because
A) They assumed that returns from the land would end in 10
years
B) The SCAP used a fixed-rate mortgage structure, when a lot
of inflation was anticipated
C) The SCAP deliberately underestimated the value of annual
production per unit of land
D) The SCAP simply reduced the amount paid to the former
landlords by an arbitrary 40%
28) The amount paid for land in a redistribution scheme should
be based on the present value of
A) gross farm revenue, less non-labour and required labour
costs
B) gross farm revenue less non-labour costs
C) future farm costs
D) gross farm revenue
29) Land reform is really just part of an overall system that
could include all of the following except
A) progressive income tax B) price restrictions on monopoly

9. firms
C) a basic low-income program D) targeted export subsidies
30) Your instructor argues that the problem with most land
reform efforts now under way is that they are
A) designed to pay market value B) designed to pay more than
market value
C) designed to pay less than market value D) badly administered
31) External obstacles to LDC growth include all of these
except:
A) Progressive tariffs in the OECD countries B) Monopsony
buying by commodity processors
C) Black market premiums D) The willingness of OECD buyers
to pay bribes
32) Your instructor argues that in recent decades we have seen
A) Commodity prices weakening and the margins available in
manufacturing declining
B) Commodity prices strengthening and the margins available in
manufacturing declining
C) Commodity prices weakening and the margins available in
manufacturing increasing
D) Commodity prices strengthening and the margins available in
manufacturing roughly unchanged
33) Export-led growth in manufactured goods may not come as
easily as in the past, because of all of these except
A) The OECD countries are broke and have enormous unfunded
liabilities
B) There are more countries competing for manufacturing work
C) Manufacturing technology is easily disseminated across the
internet
D) There are barriers to imports among the LDCs
4

10. 5
Section B 33 marks, “short” answers, 11 marks each, do three
questions only therefore 33 in total.
Choose only 3 of the 6 questions – if you write about more than
three, please make it clear which
ones you want marked!
34) Debt and Debt Forgiveness. Discuss the process of debt
accumulation in poor countries, i.e. how
loans are granted, fall behind in payment, and eventually often
lead to a crisis and perhaps “debt relief.”
How can a negative cycle be avoided? Should we be granting
debt relief, and if so, on what terms?
What does Easterly document about high-debt countries? What
rich world group never seems to bear its
share of losses when debts are forgiven?
35) Government Policies What are the policies Easterly cites
as desirable? Conversely, what are some of the

11. ways in which “Governments Can Kill Growth,” as the chapter
title put it? Discuss any of the good or bad
policies listed on the last day of class. Use any examples to
illustrate good and bad policy regimes. Be as
specific as you can please, and try to discuss bad
fiscal/financial policy in particular.
36) Aid and related topics. What are the conditions under
which aid programs can be successful?
What are some of the common problems? Is aid generally
effective? Would you side with
Easterly/Moyo or Sachs in the aid debate, and why?? Please add
a small description or discussion of
ONE OF the following three topics: Gates Foundation, Clinton
Global Initiative, or the Clare Lockhart
audio discussion.
6
37) Royalties. What are the general principles involved in

12. setting royalties? What are the specific goals of the
sellers? The buyers? What are the three market structures we
see in oil, and what are the potential benefits and
problems with each? What variable will firms use to judge
where to place their money? What problems can
lead to imperfect collection of royalties? How do royalties
differ from taxes? Discuss the particular example of
gold in Ghana.
38. Land Reform. Please describe and discuss land reform.
Provide whatever details you can recall
regarding the main example we covered. What circumstances
made this possible? What are the obstacles? Who
would benefit? Who would lose? What other steps could be
taken as part of an overall “wealth reform”? What
is the difference between “fair market” land reform and what
was done in the 1940s and 1950s in Asia? What
is the justification for an Asian-style land reform? What
financial mechanism was used?
39. The War for Resources. Please discuss the strategies being
followed by the western countries and

13. China in pursuit of required resource inputs. What issues will
determine the likely path of commodity prices?
What different form of payment is China using in some
developing countries? What are the advantages of that
method for each party? Why is China willing to pay
substantially more, at times, than the Western firms have
in the past?
213 Spring 2013 Final Exam213 Spring2013 Final ExamA MC
only213 Spring 2013 final version A - SA questions213 Spring
2013 Final exam MC answers
Unit IV Project
Incorporating your instructor’s comments and feedback from the
Unit I PowerPoint assignment, develop a safety training
program that incorporates the four topics listed below into a
topic of your choice. Topic examples might be falls or chemical
hazards.
The four topics to be incorporated into your training program
are
1. accidents and their effects;
2. hazard analysis/prevention and safety management;
3. the OSH act, standards, and liability; and
4. theories of accident causation.
Also, your training program must include some form of trainee
interaction and an examination/evaluation that tests their
understanding.
Your training program should be at least three pages in length
and in the appropriate APA format. This page length minimum
does not include the title page, references, or trainee

14. examination, including the answer sheet.
OSHA provides a great resource of sample safety and health
programs intended to provide examples of written programs on
various workplace safety and health topics. The link below will
help you see how you might write your safety training program
for this project:
https://www.osha.gov/dcsp/compliance_assistance/sampleprogra
ms.html#General%20Safety%20and%20Health%20Programs.
Information about accessing the grading rubric for this
assignment is provided below.
Instructors note:
Fernando,
Thank you for your Unit I PowerPoint submission. Very nice
work on the content (both the slide deck and the speaker's
notes).
In accordance with the rubric, your points for this assignment
are as follows:
Content (57/60) + Organization (9/10) + Quality of Presentation
(9/10) + Citations and Formatting (9/10) + Writing Mechanics
(8/10) = 92/100
Prof. Martin