Interest and Topic

CHAPTER 9Basic Macroeconomic Relationships TopicQuestion numbers:Consumption function/APC/MPC 1-39Saving function/APS/MPS 40-53Shifts in consumption and saving functions 54-69Graphs/tables: mixed consumption and saving 70-106Investment demand 107-145Multiplier effect 146-181Consider This 182-183Last Word 184-185True-False 186-200Multiple Choice Questions Consumption function/APC/MPCType: A Topic: 1 E: 152 MA: 152 .The most important determinant of consumer spending is:A)the level of household debt.B)the stock of wealth.C)consumer expectations.D)the level of income.Answer: DType: D Topic: 1 E: 152 MA: 1522. The most important determinant of consumption and saving is the:A)level of bank credit.B) level of income.C) interest rate.D) price level.Answer: BType: A Topic: 1 E: 156 MA: 1563. If Smith's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to:A)save is three-fifths.C)consume is three-fifths. B)consume is one-half.D)consume is one-sixth.Answer: CType: A Topic: 1 E: 156 MA: 1564. With an MPS of . 4, the MPC will be:A)1. 0 minus . 4.B) . 4 minus 1. 0.C) the reciprocal of the MPS.D) . 4.Answer: AType: D Topic: 1 E: 156 MA: 1565. The MPC can be defined as that fraction of a:A)change in income that is not spent.C)given total income that is not consumed.B)change in income that is spent.D)given total income that is consumed.Answer: BType: A Topic: 1 E: 154 MA: 1546. The 45-degree line on a graph relating consumption and income shows:A)all points where the MPC is constant.B)all points at which saving and income are equal.C)all the points at which consumption and income are equal.D)the amounts households will plan to save at each possible level of income.Answer: CType: A Topic: 1 E: 154 MA: 1547. As disposable income goes up the:A)APC falls.C)volume of consumption declines absolutely.B)APS falls.D)volume of investment diminishes.Answer: AType: D Topic: 1 E: 153 MA: 1538. The cons umption schedule shows:A)that the MPC increases in proportion to GDP.B)that households consume more when interest rates are low.C)that consumption depends primarily on the level of business investment.D)the amounts households plan or intend to consume at various possible levels of aggregate income.Answer: DType: D Topic: 1 E: 153 MA: 1539. The consumption schedule relates:A)consumption to the level of disposable income.C)disposable income to domestic income.B)saving to the level of disposable income.D)consumption to saving.Answer: AType: A Topic: 1 E: 153 MA: 15310. A decline in disposable income:A)increases consumption by moving upward along a specific consumption schedule.B)decreases consumption because it shifts the consumption schedule downward.C)decreases consumption by moving downward along a specific consumption schedule.D)increases consumption because it shifts the consumption schedule upward.Answer: CType: D Topic: 1 E: 154 MA: 15411. The APC is calculated as:A)change in co nsumption / change in incomeC)change in income / change in consumptionB)consumption / incomeD)income / consumptionAnswer: BType: A Topic: 1 E: 153 MA: 15312. The consumption schedule shows:A)a direct relationship between aggregate consumption and accumulated wealth.B)a direct relationship between aggregate consumption and aggregate income.C)an inverse relationship between aggregate consumption and accumulated financial wealth.D)an inverse relationship between aggregate consumption and aggregate income.Answer: BType: D Topic: 1 E: 153 MA: 15313. The APC can be defined as the fraction of a:A)change in income that is not spent.B)change in income that is spent.C)specific level of total income that is not consumed.D)specific level of total income that is consumed.Answer: DType: G Topic: 1 E: 154-155 MA: 154-15514. The consumption schedule in the above diagram indicates that:A)consumers will maximize their satisfaction where the consumption schedule and 45 ° line intersect.B)up to a poi nt consumption exceeds income, but then falls below income.C)the MPC falls as income increases.D)households consume as much as they earn.Answer: BType: A Topic: 1 E: 154 MA: 15415. The consumption schedule is drawn on the assumption that as income increases consumption will:A)be unaffected.B)increase absolutely, but remain constant as a percentage of income.C)increase absolutely, but decline as a percentage of income.D)increase both absolutely and as a percentage of income.Answer: CType: A Topic: 1 E: 154 MA: 15416. Which of the following is correct?A)APC + APS = 1.B) APC + MPS = 1.C) APS + MPC = 1.D) APS + MPS = 1.Answer: AType: A Topic: 1 E: 154-156 MA: 16117. The consumption schedule is such that:A)both the APC and the MPC increase as income rises.B)the APC is constant and the MPC declines as income rises.C)the MPC is constant and the APC declines as income rises.D)the MPC and APC must be equal at all levels of income.Answer: CType: A Topic: 1 E: 154 MA: 15418. For all levels of income to the left of the intersection of the 45-degree line and the consumption schedule, the APC is:A)greater than 100 percent.B) less than the APS.C) equal to the MPC.D) equal to 100 percent.Answer: AType: A Topic: 1 E: 156 MA: 15619. The consumption and saving schedules reveal that the:A)MPC is greater than zero, but less than one.B)MPC and APC are equal at the point where the consumption schedule intersects the 45-degree line.C)APS is positive at all income levels.D)MPC is equal to or greater than one at all income levels.Answer: AType: A Topic: 1 E: 156 MA: 15620. The size of the MPC is assumed to be:A)less than zero.B) greater than one.C) greater than zero, but less than one.D) two or more.Answer: CType: A Topic: 1 E: 153-154 MA: 153-15421. As disposable income increases, consumption:A)and saving both increase.C)decreases and saving increases.B)and saving both decrease.D)increases and saving decreases.Answer: AType: D Topic: 1 E: 154 MA: 15422. The average propensity to consu me indicates the:A)amount by which income exceeds consumption.B)relationship between a change in saving and the consequent change in consumption.C)percentage of total income that will be consumed.D)percentage of a change in income that will be consumed.Answer: CType: A Topic: 1 E: 153 MA: 15323. The relationship between consumption and disposable income is such that:A)an inverse and stable relationship exists between consumption and income.B)a direct, but very volatile, relationship exists between consumption and income.C)a direct and relatively stable relationship exists between consumption and income.D)the two are always equal.Answer: CType: A Topic: 1 E: 156 MA: 15624. If the MPC is . 8 and disposable income is $200, thenA)consumption and saving cannot be determined from the information given.B)saving will be $20.C)personal consumption expenditures will be $80.D)saving will be $40.Answer: AType: A Topic: 1 E: 156 MA: 15625. The MPC for an economy is:A)the slope of the consumption schedule or line.B)the slope of the savings schedule or line.C)1 divided by the slope of the consumption schedule or line.D)1 divided by the slope of the savings schedule or line.Answer: AType: F Topic: 1 E: 158 MA: 15826. In contrast to investment, consumption is:A)relatively stable.B) relatively unstable.C) measurable.D) unmeasurable.Answer: AUse the following to answer questions 27-28: Advanced analysis) Answer the next question(s) on the basis of the following consumption schedule: C = 20 + . 9Y , where C is consumption and Y is disposable income.Type: E Topic: 1 E: 156 MA: 15627. Refer to the above data. The MPC is:A). 45.B) . 20.C) . 50.D) . 90.Answer: DType: E Topic: 1 E: 156 MA: 15628. Refer to the above data. At an $800 level of disposable income, the level of saving is:A)$180.B) $740.C) $60.D) $18.Answer: CType: A Topic: 1 E: 156 MA: 15629. Which one of the following will cause a movement down along an economy's consumption schedule?A)an increase in stock pricesC)an incre ase in consumer indebtednessB)a decrease in stock pricesD)a decrease in disposable incomeAnswer: DType: G Topic: 1 E: 156 MA: 15630. The above diagram shows consumption schedules for economies A and B. We can say that the:A)MPC is greater in B than in A.B)APC at any given income level is greater in B than in A.C)MPS is smaller in B than in A.D)MPC is greater in A than in B.Answer: DType: A Topic: 1 E: 154 MA: 15431. At the point where the consumption schedule intersects the 45-degree line:A)the MPC is 1. 00.C)saving is equal to consumption.B)the APC is 1. 0.D)the economy is in equilibrium.Answer: BType: C Topic: 1 E: 156 MA: 15632. Holly's break-even level of income is $10,000 and her MPC is 0. 75. If her actual disposable income is $16,000, her level of:A)consumption spending will be $14,500.C)consumption spending will be $13,000.B)consumption spending will be $15,500.D)saving will be $2,500.Answer: AType: A Topic: 1 E: 156 MA: 15633. If Ben's MPC is . 80, this means that he will:A )spend eight-tenths of any increase in his disposable income.B)spend eight-tenths of any level of disposable income.C)break even when his disposable income is $8,000.D)save two-tenths of any level of disposable income.Answer: AType: A Topic: 1 E: 154 MA: 15434. Suppose a family's consumption exceeds its disposable income. This means that its:A)MPC is greater than 1.B) MPS is negative.C) APC is greater than 1.D) APS is positive.Answer: CType: E Topic: 1 E: 154 MA: 15435. (Advanced analysis) If the equation for the consumption schedule is C = 20 + 0. 8Y , where C is consumption and Y is disposable income, then the average propensity to consume is 1 when disposable income is:A)$80.B) $100.C) $120.D) $160.Answer: BType: E Topic: 1 E: 156 MA: 15636. (Advanced analysis) The equation C = 35 + . 75Y , where C is consumption and Y is disposable income, shows that:A)households will consume three-fourths of whatever level of disposable income they receive.B)households will consume $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.C)there is an inverse relationship between disposable income and consumption.D)households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.Answer: BType: E Topic: 1 E: 156 MA: 15637. Advanced analysis) If the equation C = 20 + . 6Y , where C is consumption and Y is disposable income, were graphed:A)the vertical intercept would be +. 6 and the slope would be +20.B)it would reveal an inverse relationship between consumption and disposable income.C)the vertical intercept would be negative, but consumption would increase as disposable income rises.D)the vertical intercept would be +20 and the slope would be +. 6.Answer: DType: A Topic: 1 E: 154 MA: 15438. One can determine the amount of any level of total income that is consumed by:A)multiplying total income by the slope of the consumption schedule.B) multiplying total income by the APC.C)subtracting the MPS from total income.D)multiplying total income by the MPC.Answer: BType: C Topic: 1 E: 154, 156 MA: 154, 15639. Which of the following is correct?A)MPC + MPS = APC + APSC)APC + MPC = APS + MPSB)APC + MPS = APS + MPCD)APC – APS = MPC – MPSAnswer: A Saving function/APS/MPSType: A Topic: 2 E: 154 MA: 15440. The consumption and saving schedules reveal that:A)consumption rises, but saving declines, as disposable income rises.B)saving varies inversely with the profitability of investment.C)saving varies directly with the level of disposable income.D)saving is inversely related to the rate of interest.Answer: CType: D Topic: 2 E: 154 MA: 15441. Dissaving means:A)the same thing as disinvesting.B)that households are spending more than their current incomes.C)that saving and investment are equal.D)that disposable income is less than zero.Answer: BType: D Topic: 2 E: 154 MA: 15442. Dissaving occurs where:A)income exceeds con sumption.C)consumption exceeds income.B)saving exceeds consumption.D)saving exceeds income.Answer: CType: A Topic: 2 E: 156 MA: 15643. Which of the following relations is not correct?A)1 – MPC = MPSB) APS + APC = 1C) MPS = MPC + 1D) MPC + MPS = 1Answer: CType: A Topic: 2 E: 154 MA: 15444. The saving schedule is drawn on the assumption that as income increases:A)saving will decline absolutely and as a percentage of income.B)saving will increase absolutely, but remain constant as a percentage of income.C)saving will increase absolutely, but decline as a percentage of income.D)saving will increase absolutely and as a percentage of income.Answer: DType: A Topic: 2 E: 154 MA: 15445. At the point where the consumption schedule intersects the 45-degree line:A)the MPC equals 1.B) the APC is zero.C) saving equals income.D) saving is zero.Answer: DType: A Topic: 2 E: 154 MA: 15446. The saving schedule is such that as aggregate income increases by a certain amount saving:A)increases by the same amount as the increase in income.B)does not change.C)increases, but by a smaller amount.D)increases by an even larger amount.Answer: CType: A Topic: 2 E: 156 MA: 15647. If the consumption schedule is linear, then the:A)saving schedule will also be linear.C)MPC will decline as income rises.B)MPS will decline as income rises.D)APC will be constant at all levels of income.Answer: AType: A Topic: 2 E: 153 MA: 15348. Given the consumption schedule, it is possible to graph the relevant saving schedule by:A)subtracting the MPC from 1 at each level of income.B)subtracting investment from consumption at each level of GDP.C)plotting the horizontal differences between the consumption schedule and the 45-degree line.D)plotting the vertical differences between the consumption schedule and the 45-degree line.Answer: DType: A Topic: 2 E: 154 MA: 15449. As aggregate income decreases, the APC:A)and APS will both increase.C)will increase, but the APS will decrease.B)will decrease, but the AP S will increase.D)and APS will both decrease.Answer: CType: A Topic: 2 E: 156 MA: 15650. If the marginal propensity to consume is . 9, then the marginal propensity to save must be:A)1.B) . 1.C) 1. 1.D) . 9.Answer: BType: A Topic: 2 E: 156 MA: 15651. The greater is the marginal propensity to consume, the:A)smaller is the marginal propensity to save.C)lower is the average propensity to consume.B)higher is the interest rate.D)lower is the price level.Answer: AType: A Topic: 2 E: 156 MA: 15652. If the saving schedule is a straight line, the:A)MPS must be constant.C)APC must be constant.B)APS must be constant.D)MPC must be rising.Answer: AType: A Topic: 2 E: 154 MA: 15453. Which one of the following will cause a movement up along an economy's saving schedule?A)an increase in household debt outstandingC)an increase in stock pricesB)an increase in disposable incomeD)an increase in interest ratesAnswer: B Shifts in consumption and saving functionsType: D Topic: 3 E: 156-157 MA: 156-15754. I n the late 1990s the U. S. stock market boomed, causing U. S. consumption to rise. Economists refer to this outcome as the:A)Keynes effect.B) interest-rate effect.C) wealth effect.D) multiplier effect.Answer: CType: A Topic: 3 E: 157 MA: 15755. The wealth effect is shown graphically as a:A)shift of the consumption schedule.B)movement along an existing consumption schedule.C)shift of the investment schedule.D)movement along an existing investment schedule.Answer: AUse the following to answer questions 56-59:Type: G Topic: 3 E: 157 MA: 15756. Refer to the above graph. A movement from b to a along C1 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)decrease in income tax rates.D)increase in saving.Answer: AType: G Topic: 3 E: 157 MA: 15757. Refer to the above graph. A shift of the consumption schedule from C1 to C2 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)increase in income tax rates.D)increase in s aving.Answer: BType: G Topic: 3 E: 157 MA: 15758. Refer to the above graph. A movement from a to b along C1 might be caused by a:A)recession.B)wealth effect of an increase in stock market prices.C)increase in income tax rates.D)increase in real GDP.Answer: DType: G Topic: 3 E: 157 MA: 15759. Refer to the above graph. A shift of the consumption schedule from C2 to C1 might be caused by a:A)increase in real GDP.B)reverse wealth effect, caused by a decrease in stock market prices.C)decrease in income tax rates.D)decrease in saving.Answer: BType: C Topic: 3 E: 157 MA: 15760. An upward shift of the saving schedule suggests:A)nothing with respect to changes in the APC and APS.B)that the APC and APS have both decreased at each GDP level.C)that the APC and APS have both increased at each GDP level.D)that the APC has decreased and the APS has increased at each GDP level.Answer: DType: A Topic: 3 E: 157 MA: 15761. Which of the following will not tend to shift the consumption schedule upward?A )a currently small stock of durable goods in the possession of consumersB)the expectation of a future decline in the consumer price indexC)a currently low level of household debt.D)the expectation of future shortages of essential consumer goods.Answer: BType: A Topic: 3 E: 157 MA: 15762. If the consumption schedule shifts upward and the shift was not caused by a tax change, the saving schedule:A)will not shift.C)will shift downward.B)may shift either upward or downward.D)will also shift upward.Answer: CType: A Topic: 3 E: 156 MA: 15663. Which of the following will not cause the consumption schedule to shift?A)a sharp increase in the amount of wealth held by householdsB)a change in consumer incomesC)the expectation of a recessionD)a growing expectation that consumer durables will be in short supplyAnswer: BType: A Topic: 3 E: 157 MA: 15764. An increase in personal taxes will shift:A)both the consumption and saving schedules downward.B)both the consumption and saving schedules upward. C)the consumption schedule upward and the saving schedule downward.D)the consumption schedule downward and the saving schedule upward.Answer: AType: A Topic: 3 E: 157 MA: 15765. If for some reason households become increasingly thrifty, we could show this by:A)a downshift of the saving schedule.C)an upshift of the saving schedule.B)an upshift of the consumption schedule.D)an increase in the equilibrium GDP.Answer: CType: G Topic: 3 E: 156 MA: 15666. Suppose the economy's saving schedule shifts from S1 to S 2 as shown in the above diagram. We can say that its:A)MPC has increased.B)MPS has increased.C)APS has increased at all levels of disposable income.D)APS has decreased at all levels of disposable income.Answer: BType: C Topic: 3 E: 154 MA: 15467. If a consumption schedule shifts upward, this necessarily means that the:A)MPC has increased.B)MPS has decreased.C)APC is now higher at each level of disposable income.D)APC is now lower at each level of disposable income.Answer: CType: A Topic: 3 E: 158 MA: 15868. Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of:A)an increase in disposable income.C)an increase in personal taxes.B)an increase in household wealth.D)the expectation of a recession.Answer: CType: G Topic: 3 E: 154 MA: 15469. Suppose an economy's consumption schedule shifts from C1 to C2 as shown in the above diagram. We can say that its:A)MPC has increased but its APC at each income level is unchanged.B)APC at each income level is increased but its MPC is unchanged.C)MPC and APC at each income level have both increased.D)MPC and APC at each income level have both decreased.Answer: CGraphs/tables: mixed consumption and saving Use the following to answer questions 70-72:Type: T Topic: 4 E: 156 MA: 15670. Refer to the above data. The marginal propensity to consume is:A). 25.B) . 75.C) . 20.D) . 80.Answer: DType: T Topic: 4 E: 154 MA: 15471. Refer to the above data. At the $200 level of disposab le income:A)the marginal propensity to save is 2? percent.C)the average propensity to save is . 20.B)dissaving is $5.D)the average propensity to consume is . 80.Answer: BType: T Topic: 4 E: 156 MA: 15672. Refer to the above data. If disposable income was $325, we would expect consumption to be:A)$315.B) $305.C) $20.D) $290.Answer: BUse the following to answer questions 73-78:Type: G Topic: 4 E: 154 MA: 15473. Refer to the above diagram. The average propensity to consume is 1 at point:A)F.B) A.C) D.D) B.Answer: BType: G Topic: 4 E: 156 MA: 15674. Refer to the above diagram. The marginal propensity to consume is equal to:A)AE/0E.B) CF/CD.C) CB/AB.D) CD/CF.Answer: CType: G Topic: 4 E: 154-155 MA: 154-15575. Refer to the above diagram. At income level F the volume of saving is:A)BD.B) AB.C) CF-BF.D) CD.Answer: DType: G Topic: 4 E: 154 MA: 15476. Refer to the above diagram. Consumption will be equal to income at:A)an income of E.B) an income of F.C) point C.D) point D.Answer: AType: G To pic: 4 E: 154-155 MA: 154-15577. Refer to the above diagram. The economy is dissaving:A)in the amount CD.C)at income level H.B)at all income levels greater than E.D)at income level E.Answer: CType: G Topic: 4 E: 156 MA: 15678. Refer to the above diagram. The marginal propensity to save is:A)CD/EF.B) CB/CF.C) CB/AF.D) EF/CB.Answer: AUse the following to answer questions 79-80:Type: A Topic: 4 E: 153 MA: 15379. The above figure suggests that:A)consumption would be $60 billion even if income were zero.B)saving is zero at the $120 billion income level.C)as income increases, consumption decreases as a percentage of income.D)as income increases, consumption decreases absolutely.Answer: CType: A Topic: 4 E: 154-155 MA: 154-15580. Refer to the above figure. If the relevant saving schedule were constructed:A)saving would be minus $20 billion at the zero level of income.B)aggregate saving would be $60 at the $60 billion level of income.C)its slope would be 1/2.D)it would slope downward and to the rightAnswer: AUse the following to answer questions 81-83:Answer the next question(s) on the basis of the following data for a hypothetical economy.Type: T Topic: 4 E: 156 MA: 15681. Refer to the above data. The marginal propensity to consume is:A). 80.B) . 75.C) . 20.D) . 25.Answer: AType: T Topic: 4 E: 154 MA: 15482. Refer to the above data. At the $100 level of income, the average propensity to save is:A). 10.B) . 20.C) . 25.D) . 90.Answer: AType: T Topic: 4 E: 156 MA: 15683. Refer to the above data. If plotted on a graph, the slope of the saving schedule would be:A). 80.B) . 10.C) . 20.D) . 15.Answer: CUse the following to answer questions 84-88:Type: G Topic: 4 E: 156 MA: 15684. Refer to the above diagram. The marginal propensity to save is equal to:A)CD/0D.B) 0B/0A.C) 0D/0D.D) CD/BD.Answer: DType: G Topic: 4 E: 154 MA: 15485. Refer to the above diagram. At disposable income level D, the average propensity to save is equal to:A)CD/BD.B) CD/D.C) D/CD.D) A/B.Answer: BType: G Topic: 4 E: 154-155 MA: 154-15586. Refer to the above diagram. At disposable income level D, consumption is:A)equal to CD.B) equal to D minus CD.C) equal to CD/D.D) equal to CD plus BD.Answer: BType: G Topic: 4 E: 154-155 MA: 154-15587. Refer to the above diagram. Consumption equals disposable income when:A)disposable income is B.B) disposable income is D.C) CD equals A.D) B equals CD.Answer: AType: A Topic: 4 E: 156-157 MA: 156-15788. The saving schedule shown in the above diagram would shift downward if, all else equal:A)the average propensity to save increased at each income level.B)the marginal propensity to save rose at each income level.C)consumer wealth rose rapidly because of a significant increase in stock market prices.D)the real interest rate fell.Answer: CUse the following to answer questions 89-96:Answer the next question(s) on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.Type: T Topic: 4 E: 156 MA: 15689. Refer to the above data. The marginal propensity to consume in economy (1) is:A). 5.B) . 3.C) . 8.D) . 7.Answer: DType: T Topic: 4 E: 156 MA: 15690. Refer to the above data. The marginal propensity to consume:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be calculated from the data given.Answer: CType: T Topic: 4 E: 156 MA: 15691. Refer to the above data. The marginal propensity to save:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be determined from the data given.Answer: AType: T Topic: 4 E: 154 MA: 15492. Refer to the above data. At an income level of $40 billion, the average propensity to consume:A)is highest in economy (1).C)is highest in economy (3).B)is highest in economy (2).D)cannot be determined from the data given.Answer: BType: T Topic: 4 E: 154 MA: 15493. Refer to the above data. At an income level of $400 billion, the aver age propensity to save in economy (2) is:A). 9125.B) . 0725.C) . 0875.D) . 9305.Answer: CType: T Topic: 4 E: 156 MA: 15694. (Advanced analysis) Refer to the above data. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is _____ and the slope is _____.A)minus $2; . 9.B) $2; . 18.C) $100; . 5.D) $2; . 9.Answer: DType: T Topic: 4 E: 158 MA: 15895. Refer to the above data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:A)marginal propensity to consume will remain unchanged in each of the three countries.B)marginal propensity to consume will decline in each of the three countries.C)average propensity to save will fall at each level of DI in each of the three countries.D)marginal propensity to save will rise in each of the three countries.Answer: AType: T Topic: 4 E: 157 MA: 15796. Refer to the above data. A $2 billion increase in consumption at each level of DI could be caused by:A)a decrease in consumer wealth.C)an increase in taxation.B)new expectations of higher future income.D)an increase in saving.Answer: BUse the following to answer questions 97-100:Type: G Topic: 4 E: 154 MA: 15497. Refer to the above diagram. The break-even level of disposable income:A)is zero.B) is minus $10.C) is $100.D) cannot be determined from the information given.Answer: CType: G Topic: 4 E: 156 MA: 15698. Refer to the above diagram. The marginal propensity to consume is:A). 2.B) . 8.C) . 4.D) . 3.Answer: BType: G Topic: 4 E: 156 MA: 15699. (Advanced analysis) The equation for the above saving schedule is:A)Yd = -20 + . 8S.B) Yd = 20 + . 2S.C) S = -20 + . 2Yd.D) S = 20 + . 8Yd.Answer: CType: G Topic: 4 E: 154-155 MA: 154-155100. Refer to the above diagram. The average propensity to consume:A)is greater than 1 at all levels of disposable income above $100.B)is greater than 1 at all levels of disposable income below $100.C)is equal to the average propensity to save.D) cannot be determined from the information given.Answer: BUse the following to answer questions 101-104:Type: G Topic: 4 E: 154 MA: 154101. Refer to the above diagram. The break-even level of income is:A)zero.B) $150.C) $60.D) $120.Answer: BType: G Topic: 4 E: 154 MA: 154102. Refer to the above diagram. The average propensity to consume is:A)greater than 1 at all levels of income above $150.B)greater than 1 at all levels of income below $150.C)zero.D). 6.Answer: BType: G Topic: 4 E: 156 MA: 156103. Refer to the above diagram. The marginal propensity to consume is:A). 4.B) . 6.C) . 5.D) . 8.Answer: BType: G Topic: 4 E: 156 MA: 156104. (Advanced analysis) Refer to the above diagram. The equation for the consumption schedule is:A)C = . 6Y .B) Y = 60 + . C.C) C = 60 + . 6Y .D) C = 60 + . 4Y .Answer: CUse the following to answer questions 105-106: (Advanced analysis) Answer the next question(s) on the basis of the following data:Type: T Topic: 4 E: 156 MA: 156105. Which of the following e quations correctly represents the above data?A)Yd = 40 + . 6CB) C = 60 + . 4YdC) C = 40 + . 6YdD) C = . 6YdAnswer: CType: T Topic: 4 E: 156 MA: 156106. Which of the following equations represents the saving schedule implicit in the above data?A)S = C – YdB) S = 40 + . 4YdC) S = 40 + . 6YdD) S = -40 + . YdAnswer: DInvestment demandType: F Topic: 5 E: 160 MA: 160 Status: New107. The investment demand curve portrays an inverse (negative) relationship between:A)investment and real GDP.C)the nominal interest rate and investment.B)the real interest rate and investment.D)the price level and investment.Answer: BType: F Topic: 5 E: 160 MA: 160 Status: New108. The investment demand slopes downward and to the right because lower real interest rates:A)expand consumer borrowing, making investments more profitable.B)boost expected rates of returns on investment.C)enable more investment projects to be undertaken profitably.D)create tax incentives to invest.Answer: CType: ATopic: 5 E: 159 MA : 159 Status: New109. Other things equal, a decrease in the real interest rate will:A)shift the investment demand curve to the right.B)shift the investment demand curve to the left.C)move the economy upward along its existing investment demand curve.D)move the economy downward along its existing investment demand curve.Answer: DType: A Topic: 5 E: 159 MA: 159110. Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000. The expected rate of return on this tool is:A)80 percent.B) 8 percent.C) 2 percent.D) 20 percent.Answer: DType: A Topic: 5 E: 159 MA: 159111. Assume a machine which has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of return on this machine is:A)7. 5 percent.B) 10 percent.C) 15 percent.D) 20 percent.Answer: CType: A Topic: 5 E: 159 MA: 159112. If the firm in the previous question finds it can borrow funds at an interest rate of 10 percent the firm should:A)not purchase the machine because the expected rate of return exceeds the interest rate.B)not purchase the machine because the interest rate exceeds the expected rate of return.C)purchase the machine because the expected rate of return exceeds the interest rate.D)purchase the machine because the interest rate exceeds the expected rate of return.Answer: CType: D Topic: 5 E: 159-160 MA: 159-160113. The relationship between the real interest rate and investment is shown by the:A)investment demand schedule.C)saving schedule.B)consumption of fixed capital schedule.D)aggregate supply curve.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160114. Given the expected rate of return on all possible investment opportunities in the economy:A)an increase in the real rate of interest will reduce the level of investment.B)a decrease in the real rate of interest will reduce the level of investment.C)a change in the real interest rate will have no impact on the level of investment.D)an increase in the real interest rate will increase the level of investment.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160115. A decline in the real interest rate will:A)increase the amount of investment spending.C)shift the investment demand curve to the right.B)shift the investment schedule downward.D)shift the investment demand curve to the left.Answer: AType: A Topic: 5 E: 159-160 MA: 159-160116. The immediate determinants of investment spending are the:A)expected rate of return on capital goods and the real interest rate.B)level of saving and the real interest rate.C)marginal propensity to consume and the real interest rate.D)interest rate and the expected price level.Answer: AType: A Topic: 5 E: 160 MA: 160117. The investment demand curve suggests:A)that changes in the real interest rate will not affec t the amount invested.B)there is an inverse relationship between the real rate of interest and the level of investment spending.C)that an increase in business taxes will tend to stimulate investment spending.D)there is a direct relationship between the real rate of interest and the level of investment spending.Answer: BType: T Topic: 5 E: 160 MA: 160118. Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. The investment-demand curve for this economy is:Answer: BType: T Topic: 5 E: 160 MA: 160119. In view of your answer to the previous question, if the real interest rate is 15 percent in this economy, the aggregate amount of investment will be:A)$25.B) $20.C) $15.D) $10.Answer: DType: C Topic: 5 E: 162 MA: 162120. If business taxes ar e reduced and the real interest rate increases:A)consumption and saving will necessarily increase.B)the level of investment spending might either increase or decrease.C)the level of investment spending will necessarily increase.D)the level of investment spending will necessarily decrease.Answer: BType: A Topic: 5 E: 162 MA: 162121. Other things equal, a 10 percent decrease in corporate income taxes will:A)decrease the market price of real capital goods.B)have no effect on the location of the investment-demand curve.C)shift the investment-demand curve to the right.D)shift the investment-demand curve to the left.Answer: CType: A Topic: 5 E: 162 MA: 162122. The investment demand curve will shift to the right as the result of:A)the availability of excess production capacity.B)an increase in business taxes.C)businesses becoming more optimistic about future business conditions.D)an increase in the real interest rate.Answer: CType: A Topic: 5 E: 159-160 MA: 159-160123. Other things equal, the real interest rate and the level of investment are:A)related only when saving equals planned investment.B)unrelated.C)inversely related.D)directly related.Answer: CUse the following to answer questions 124-125:Answer the next question(s) on the basis of the following table:Type: T Topic: 5 E: 160 MA: 160124. The above table reflects a(n):A)interest rate schedule.C)investment demand schedule.B)demand-for-money schedule.D)profit schedule.Answer: CType: T Topic: 5 E: 160 MA: 160125. The above schedule indicates that if the real interest rate is 8 percent, then:A)we cannot tell what volume of investment will be profitable.B)$30 billion will be both saved and invested.C)$30 billion of investment will be undertaken.D)$60 billion of investment will be undertaken.Answer: CType: C Topic: 5 E: 162 MA: 162126. Other things equal, if the real interest rate falls and business taxes rise:A)investment will rise until it is equal to saving.B)we will be uncertain as to the resulting change in in vestment.C)we can be certain that investment will rise.D)we can be certain that investment will fall.Answer: BType: A Topic: 5 E: 162 MA: 162127. The investment demand curve will shift to the right as a result of:A)an increase in the excess production capacity available in industry.B)an increase in business taxes.C)technological progress.D)an increase in the acquisition and maintenance cost of capital goods.Answer: CType: A Topic: 5 E: 162 MA: 162128. The investment demand curve will shift to the left as a result of:A)an increase in the excess production capacity available in industry.B)a decrease in business taxes.C)increased business optimism with respect to future economic conditions.D)a decrease in labor costs.Answer: AType: A Topic: 5 E: 159 MA: 159129. If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:A)r falls.B) i is greater than r.C) r is greater than i.D) i rises.Answ er: CType: A Topic: 5 E: 162 MA: 162130. A rightward shift of the investment demand curve might be caused by:A)an increase in the price level.B)a decline in the real interest rate.C)an increase in the expected rate of return on investment.D)an increase in business taxes.Answer: CType: A Topic: 5 E: 159 MA: 159131. The real interest rate is:A)the percentage increase in money that the lender receives on a loan.B)the percentage increase in purchasing power that the lender receives on a loan.C)also called the after-tax interest rate.D)usually higher than the nominal interest rate.Answer: BType: A Topic: 5 E: 160 MA: 160132. When we draw an investment demand curve we hold constant all of the following except:A)the expected rate of return on the investment.C)the interest rate.B)business taxes.D)the present stock of capital goods.Answer: CType: A Topic: 5 E: 159 MA: 159133. If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is:A)18 percen t.B) 24 percent.C) 12 percent.D) 6 percent.Answer: CType: A Topic: 5 E: 159-160 MA: 159-160134. If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is:A)2 percent.B) zero percent.C) 10 percent.D) 22 percent.Answer: DType: A Topic: 5 E: 160 MA: 160135. A high rate of inflation is likely to cause a:A)high nominal interest rate.C)low rate of growth of nominal GDP.B)low nominal interest rate.D)decrease in nominal wages.Answer: AType: A Topic: 5 E: 160 MA: 160136. If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:A)more investment will be forthcoming when i exceeds r.B)less investment will be forthcoming when r rises.C)r will fall as more investment is undertaken.D)r will exceed i at all possible levels of investment.Answer: CType: A Topic: 5 E: 159 MA: 159137. If the real interest rate in the economy is i and the expected rate of return on additional inv estment is r, then other things equal:A)investment will take place until i and r are equal.B)investment will take place until r exceeds i by the greatest amount.C)r will rise as more investment is undertaken.D)i will fall as more investment is undertaken.Answer: AType: G Topic: 5 E: 160 MA: 160138. Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent; another $15 with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Which of the lines on the above diagram represents these data?A)AB) BC) CD) DAnswer: BUse the following to answer questions 139-141:Answer the next question(s) on the basis of the following information for a private c losed economy. Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent; another $15 with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range.Type: G Topic: 5 E: 159 MA: 159139. Refer to the above information. If the real interest rate is 15 percent, what amount of investment will be undertaken?A)$15B) $30C) $45D) $60Answer: BType: G Topic: 5 E: 159 MA: 159140. Refer to the above information. If the real interest rate is 5 percent, what amount of investment will be undertaken?A)$15B) $30C) $45D) $60Answer: DType: G Topic: 5 E: 160 MA: 160141. Refer to the above information. The expected rate of return curve:A)shows a direct relationship between the i nterest rate and investment.B)is also the investment demand curve.C)is indeterminant.D)implies a direct (positive) relationship between the interest rate and the level of GDP.Answer: BUse the following to answer questions 142-144:Type: G Topic: 5 E: 162 MA: 162 Status: New142. Which of the following would shift the investment demand curve from ID1 to ID2?A)a lower interest rateC)a higher interest rateB)lower expected rates of return on investmentD)higher expected rates of return on investmentAnswer: DType: G Topic: 5 E: 162 MA: 162 Status: New143. Which of the following would shift the investment demand curve from ID1 to ID3?A)a lower interest rateC)a higher interest rateB)lower expected rates of return on investmentD)higher expected rates of return on investmentAnswer: BType: G Topic: 5 E: 160 MA: 160 Status: New144. Which of the following would increase investment, while leaving an existing investment demand curve, say, ID2, in place?A)a lower interest rateC)lower expected returns on investmentB)a higher interest rateD)higher expected returns on investmentAnswer: AType: F Topic: 5 E: 162-163 MA: 162-163 Status: New145. In annual percentage terms, investment spending in the United States is:A)less variable than real GDP.C)less variable than the price level.B)less variable than consumption spending.D)more variable than real GDP.Answer: DMultiplier effectType: A Topic: 6 E: 164 MA: 164146. The multiplier effect means that:A)consumption is typically several times as large as saving.B)a change in consumption can cause a larger increase in investment.C)an increase in investment can cause GDP to change by a larger amount.D)a decline in the MPC can cause GDP to rise by several times that amount.Answer: CType: E Topic: 6 E: 166 MA: 166147. The multiplier is:A)1/MPC.B) 1/(1 + MPC).C) 1/MPS.D) 1/(1 – MPS).Answer: CType: A Topic: 6 E: 164 MA: 164148. The multiplier is useful in determining the:A)full-employment unemployment rate.B)level of business inventories.C) rate of inflation.D)change in GDP resulting from a change in spending.Answer: DType: D Topic: 6 E: 164 MA: 164149. The multiplier is defined as:A)1 – MPS.C)change in GDP/initial change in spending.B)change in GDP ? initial change in spending.D)change in GDP – initial change in spending.Answer: CUse the following to answer questions 150-151:Type: G Topic: 6 E: 156 MA: 156150. The above figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the highest marginal propensity to consume?A)1B) 2C) 3D) 4Answer: DType: G Topic: 6 E: 166 MA: 166151. The above figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the largest multiplier?A)1B) 2C) 3D) 4Answer: DType: E Topic: 6 E: 166 MA: 166 152. If 100 percent of any change in income is spent, the multiplier will be:A)equal to the MPC.B) 1.C) zero.D) infinitely large.Answer: DType: E Topic: 6 E: 166 MA: 166153. The multiplier can be calculated as:A)1/(MPS + MPC)B) MPC/MPSC) 1 /(1 – MPC)D) 1 – MPC = MPSAnswer: CType: D Topic: 6 E: 166 MA: 166154. The multiplier:A)occurs only in response to a change in the level of investment spending.B)can be found by taking the reciprocal of the MPS.C)occurs only when intended investment increases as GDP increases.D)is measured by the slope of the saving schedule.Answer: BType: A Topic: 6 E: 166 MA: 166155. The size of the multiplier is equal to the:A)slope of the consumption schedule.B)reciprocal of the slope of the consumption schedule.C)slope of the saving schedule.D)reciprocal of the slope of the saving schedule.Answer: DType: C Topic: 6 E: 166 MA: 166156. If the MPS is only half as large as the MPC, the multiplier is:A)2.B) 3.C) 4.D) 5.Answer: BType: A Topic: 6 E: 166 MA: 166157. If the MPC is . 70 and gross investment increases by $3 billion, the equilibrium GDP will:A)increase by $10 billion.C)decrease by $4. 29 billion.B)increase by $2. 10 billion.D)increase by $4. 29 billion.Answer: AType: A Topic: 6 E: 166 MA: 166158. The numerical value of the multiplier will be smaller the:A)larger the average propensity to consume.C)larger the slope of the consumption schedule.B)larger the slope of the saving schedule.D)smaller the slope of the saving schedule.Answer: BType: A Topic: 6 E: 165 MA: 165159. The practical significance of the multiplier is that it:A)equates the real interest rate and the expected rate of return on investment.B)magnifies initial changes in spending into larger changes in GDP.C)keeps inflation within tolerable limits.D)helps to stabilize the economy.Answer: BType: F Topic: 6 E: 166 MA: 166160. The multiplier:A)varies directly with the slope of the investment demand schedule.B)is unrelated to the slope of the saving schedule.C)will be greater, the smaller is the slope of the saving schedule.D)will be greater, the steeper is the slope of the saving schedule.Answer: CType: A Topic: 6 E: 166 MA: 166161. The increase in income that results from an increase in investm ent spending would be greater the:A)smaller the MPS.B) smaller the APC.C) larger the MPS.D) smaller the MPC.Answer: AType: A Topic: 6 E: 164 MA: 164162. The multiplier effect:A)reduces the MPC.B)magnifies changes in spending into larger changes in output and income.C)promotes stability of the general price level.D)lessens upswings and downswings in business activity.Answer: BType: E Topic: 6 E: 166 MA: 166163. If the MPC is . 6, the multiplier will be:A)4. 0.B) 6. 0.C) 2. 5.D) 1. 67.Answer: CType: C Topic: 6 E: 166 MA: 166164. Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by:A)$3 billion.B) $2/3 billion.C) $6 billion.D) $2 billion.Answer: CType: E Topic: 6 E: 166 MA: 166165. The multiplier is:A)1/APS.B) 1/APC.C) 1/MPC.D) 1/MPS.Answer: DType: A Topic: 6 E: 164 MA: 164 Status: New166. The multiplier applies to:A)investment but not to net exports or government spending.B)investment, net exports, and government spending.C)increases in spending but not to decreases in spending.D)spending by the private sector but not by the public sector.Answer: BType: A Topic: 6 E: 164 MA: 164167. The multiplier effect indicates that:A)a decline in the interest rate will cause a proportionately larger increase in investment.B)a change in spending will change aggregate income by a larger amount.C)a change in spending will increase aggregate income by the same amount.D)an increase in total income will generate a larger change in aggregate expenditures.Answer: BUse the following to answer questions 168-173:Answer the next question(s) on the basis of the following table that illustrates the multiplier process. Type: T Topic: 6 E: 156 MA: 156168. Refer to the above table. The marginal propensity to consume is:A). 5.B) . 75.C) . 8.D) . 9.Answer: CType: T Topic: 6 E: 156 MA: 156169. Refer to the above table. The marginal propensity to save is:A). 5.B) . 25.C) . 2.D) . 1.Answer: CType: T Topic: 6 E: 156 MA: 156170. Refer to the above table. The change in income in round two will be:A)$4.B) $16.C) $20.D) $24.Answer: BType: T Topic: 6 E: 164 MA: 164171. Refer to the above table. The total change in income resulting from the initial change in investment will be:A)$100.B) $20.C) $80.D) $200.Answer: A Type: T Topic: 6 E: 165 MA: 165172. Refer to the above table. The total change in consumption resulting from the initial change in investment will be:A)$100.B) $96.C) $180.D) $80.Answer: DType: T Topic: 6 E: 166 MA: 166173. Refer to the above table. The multiplier in this economy is:A)2.B) 4.C) 5.D) 10.Answer: CType: C Topic: 6 E: 164 MA: 164174. If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the multiplier in the economy is:A)4.B) 5.C) 3. 33.D) 2. 5.Answer: BType: C Topic: 6 E: 164 MA: 164175. If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round, the multiplier in the economy is:A)2.B) 3. 33.C) 5.D) 10.Answer: AType: C Topic: 6 E: 165 MA: 165176. If a $100 billion decrease in investment spending causes income to decline by $100 billion in the first round of the multiplier process and by $75 billion in the second round, income will eventually decline by:A)$200 billion.B) $300 billion.C) $400 billion.D) $500 billion.Answer: CType: C Topic: 6 E: 165 MA: 165177. If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:A)$2500 billion.B) $3000 billion.C) $4000 billion.D) $5000 billion.Answer: DType: C Topic: 6 E: 166 MA: 166178. If the marginal propensity to save is 0. 2 in an economy, a $20 billion rise in investment spending will increase:A)GDP by $120 billion.C)saving by $25 billion.B)GDP by $20 billion.D)consumption by $80 billion. Answer: DType: A Topic: 6 E: 166 MA: 166179. A $1 billion increase in investment will cause a:A)(1/MPS) billion increase in GDP.C)(1 – MPC) billion increase in GDP.B)(MPS) billion increase in GDP.D)(MPC – MPS) billion increase in GDP.Answer: AType: F Topic: 6 E: 166-167 MA: 166-167180. The Council of Economic Advisers has estimated that the actual multiplier for the U. S. economy is approximately:A)4.B) 3. 5.C) 3.D) 2.Answer: DType: F Topic: 6 E: 166-167 MA: 166-167 Status: New181. The actual multiplier effect in the U. S. economy is less than the multiplier effect in the text examples because:A)the real-world MPS is larger than the MPS in the examples.B)in addition to saving, households use some of any increase in income to buy imported goods and to pay higher taxes.C)the gap between the nominal interest rate and the real interest rate widens as the economy expands or contracts.D)the MPC in the United States is greater than 1.Answer: BConsider This QuestionsType: F E: 159 MA: 159 Status: New182. (Consider This) U. S. consumption increased between March 2000 and July 2002 even though stock values declined by $3. 7 trillion. One of the reasons was that:A)lower interest rates allowed many households to reduce their monthly loan payments and increase their consumption spending.B)deflation occurred, which increased purchasing power.C)economic growth accelerated relative to the prior two years.D)the unemployment rate dramatically declined.Answer: AType: F E: 159 MA: 159 Status: New183. (Consider This) Part of the wealth effect of a $3. 7 trillion decline in stock values between March 2000 and July 2002 was offset by rising:A)tax rates.B) interest rates.C) house values.D) expectations of future income.Answer: CLast Word QuestionsType: A E: 167 MA: 167184. (Last Word) Art Buchwald's article â€Å"Squaring the Economic Circle† is a humorous description of:A)a negative GDP gap.C)the marginal propensity to save.B)a positive GDP gap.D)the multiplier. Answer: DType: A E: 167 MA: 167185. Last Word) Art Buchwald's article â€Å"Squaring the Economic Circle† humorously describes how:A)a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision.B)a price increase on a single product eventually leads to rapid inflation.C)an increase in imports eventually leads to a greater increase in exports.D)a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.Answer: ATrue/False QuestionsType: A E: 154 MA: 154186. If DI is $275 billion and the APC is 0. 8, we can conclude that saving is $55 billion.Answer: TrueType: A E: 156 MA: 156187. If the MPC is constant at various levels of income, then the APC must also be constant at all of those income levels.Answer: FalseType: A E: 154 MA: 154188. The average propensity to consume is defined as income divided by consumption.Answer: FalseType: D E: 156 MA: 156189. 1 – MPC = MPS.Answer: TrueType: A E: 159 MA: 159190. A decline in the real interest rate will shift the investment demand curve to the right.Answer: FalseType: A E: 156 MA: 156191. If the Brown family's marginal propensity to consume is 0. 70, then it will necessarily consume seven-tenths of its total income.Answer: FalseType: A E: 156 MA: 156192. 1 + MPS = MPC.Answer: FalseType: A E: 156 MA: 156193. The slope of the consumption schedule is measured by the MPC.Answer: TrueType: A E: 159 MA: 159194. A specific investment will be undertaken if the expected rate of return, r, exceeds the interest rate, i.Answer: TrueType: A E: 163-164 MA: 163-164195. Investment is highly stable; it rarely changes.Answer: FalseType: A E: 156 MA: 156196. The greater the MPC, the greater the multiplier.Answer: TrueType: A E: 166 MA: 166197. If the MPS is 1, the multiplier will be 1.Answer: TrueType: A E: 166 MA: 166198. The multiplier is equal to the reciprocal of the MPC.Answ er: FalseType: F E: 164 MA: 164 Status: New199. The multiplier shows the relationship between changes in a component of spending, say, investment, and the consequent changes in real income and output.Answer: TrueType: F E: 167 MA: 167 Status: New200. The estimate for the value of the real-world multiplier is 2.Answer: True

Analysis of Competition on the Book “Maus”

Competition in Maus The book Maus addresses the issue of the Holocaust and tells the story of Vladek in detail, a man who survived Auschwitz. However, one of the most striking things about the story is not the surviving issue, but how it reveals the relationship between Vladek and his son. Competition is everywhere in the story. In the first book Vladek had a competitive relationship with his son Artie, but throughout the story the competition falls into the hands of Artie and Richieu, the dead brother.Artie is constantly struggling with the broken relationship he has with his father. When talking to Pavel, Artie says: â€Å"No matter what I have accomplished, it doesn’t seem like much compared to surviving Aushwitz† (II, 45). Artie’s life experiences and those of his father are completely different and this difference seems to increase the distance between them. People have different stories and backgrounds, but their skills and greatness can’t be measure d by one individual event, such as the Holocaust.Due to this eternal competition imposed by his father, Artie's purpose for writing the book may have started in order to record family history, but this was a superficial cover attempting to overcome his deeper feelings of inferiority he felt while around his father. â€Å"He loved showing off how handy he was†¦ and proving that anything I did was all wrong. He made me completely neurotic about fixing stuff†¦ One reason I became an artist was that he thought it was impractical-just a waste of time†¦ It was an area where I wouldn’t have to compete with him† (I, 97).In fact, Artie did show his competence through writing the book and being able to portrait his dad’s story so well. A passage that demonstrates how Vladek always seems to be making Artie feel incompetent is when Vladek knocks over a his bottle of pills and blames it on Artie. â€Å"Look now what you made me do! † (I, 30). Even thoug h Vladek knows it was his own fault, he doesn’t want to admit it. Then Artie tells him â€Å"Okay, I’ll re-count them later†. 30), but Vladek replies saying that Artie doesn’t know how to count his pills and adds â€Å"I’m an expert for this† (30). These two quotes clearly show how Vladek is always trying to prove himself better than his son. Vladek never gives Artie the chance to prove that he is capable of doing anything and this increases the distance between father and son. Another example of Vladek's necessity for dominance is shown when he accidently breaks a plate and gets really upset. Artie tries to remedy the ituation and offers to do the dishes, but his father replies in his broken English, â€Å"No. You can defrost out the turkey legs†¦ you only would break me the rest of my plates† (II, 73). Vladek is always trying to give him easier jobs and won't admit that Artie is equally capable of anything because this would pu t a hole in his credibility. With credibility comes dominance, and without it he loses it. If he loses his dominance over Artie, this would free Artie from the comparison trap because he wouldn't feel inferior anymore.On the second book, Artie tells Francoise about Richieu and how his parents had always had a picture of the dead brother in their room, but never a picture of Artie. â€Å"The photo never threw tantrums or got in any kind of trouble†¦ it was an ideal kid, and I was a pain the ass. I couldn’t compete† (II, 15). Due to this eternal competition with Richieu, Artie was caught in a â€Å"competition trap† that he struggled with his whole life. This boxed Artie in. Because everything he did was compared to an unrepeatable experience, Artie could never break out of the competition trap.This trap would always hold him back. Artie lived in a new time with new opportunities, but he still couldn’t let go of this unspoken competition with his ghost brother. One of the most effective images in the novel was on the very last panel, when Vladek says â€Å"I'm tired from talking, Richieu, it's enough stories for now† (II 136). This scene illustrates the preference Vladek has for his first son, Richieu. In choosing this quote to be the last one in the book Artie displays that this competition with his brother has no end.The fact that Artie dedicated the book to Richieu is another display of this, that even though they never met, Vladek was able to bring Richieu alive in Artie's life. This passage also demonstrates how much Vladek still wishes Richieu was there with him. It is definitely painful for Artie to be called Richieu. In addition to this last quote, Artie also chose to dedicate the book to Richieu, Vladek and Richieu felt the direct pain of the holocaust, and as much as Artie tried he would only be able to experience its indirect effects, and this would never hold up in any comparison.Sibling rivalry built up in Art ie's veins, but as most siblings have ways to exchange this equally, Artie was in a unique situation. Not only could he never experience the things Richieu did, he could never exchange any emotions. Richieu was only a photo, and yet Vladek always unconsciously made sure Richieu’s life affected Artie. Artie was never going to be good enough for his father, or his ghost brother. He was stuck in a constant competition with someone no longer living. Writing Maus was what he did to relieve what was forced on him.Most books written about the holocaust are full of the direct effects, but his book took a new spin on the topic by focusing on the indirect effects. He would never stop competing with his brother. This is evident up to the last quote of the story when Vladek calls Artie by his dead brother’s name, which just goes to show that Artie is still upset by this competition. Work Cited: Spiegelman, Art. Maus: A Survivor's Tale, I : My Father Bleeds History. New York: Panth eon, 1986. Spiegelman, Art. Maus: A Survivor's Tale, II : And Here my Troubles Began. New York: Pantheon, 1986.

Dominican-American Convention of 1907 Essay Example | Topics and Well Written Essays - 250 words

Dominican-American Convention of 1907 - Essay Example Second, the Dominican debt included American creditors and the United States wanted to see that they were paid and American control of Dominican finances made this more likely. The principle that the United States would force countries in the western hemisphere to pay their foreign debt is the Roosevelt Corollary of the Monroe Doctrine. Third, the United States wanted to make a statement and demonstrate to other countries in the western hemisphere that if they did not pay their foreign debts the United States would intervene and force them to. Accepting the fiscal convention preempted direct military intervention by the the European states that would have interfered with Dominican sovreignty. It also prevented direct military intervention by the United States. In this sense it allowed the Dominican to avoid a worse fate – invasion. Also, there was implicit coercion involved in American advocacy of the Convention and Dominican acceptance of it. In fact, American forces would invade the Dominican less than one decade later. Finally, President Ramà ³n Cà ¡ceres, eventually assassinated in 1911, was unsure that he could retain power without the support of the United States which was conditional on his acceptance of the

How the story of Cinderella has developed over time Essay

How the story of Cinderella has developed over time - Essay Example other literary tales, Cinderella came from an earlier oral tradition of stories that were recurring in different cultures around the world and they still show a lot of similarity even though the total known variants are more than seven hundred. There are different versions that have been made in to film at various points in time, and they include A Cinderella Story, which was a film that was directed Mark Rosman in 2004, Another Cinderella Story that was produced by Damon Santostefano in 2008 and Ever After: A Cinderella Story that was directed by Andy Tennant in 1999. Some versions that are in the form of books are The Rough Face Girl that was written by Rafe Martin and came out in 1992 as well as The Egyptian Cinderella, which was written by Shirley Climo. In all the versions of the Cinderella stories, the heroines are portrayed to be living in the middle to upper class societies and having loving fathers that are proper to their characters, birth as well as other traits but who ultimately leave or are forced out in one way or another. The heroines therefore, must prove themselves and participate in adventures or engage in work that will enable them to go back to the class and environment that they are familiar with. In the contemporary versions of the fairy tale the actresses that play the part are with no doubt beautiful, the attention is mainly drawn to the strength they possess, their knowledge as well as integrity as characters who are in charge of their own fates. The main difference that exists between the Cinderella tales that exist in the contemporary times and the cultural Cinderella is that they are set in varying times but the similarities in the tales outweigh the differences. All the central characters have a distinct visual appeal to her that makes her unique and stand out. For instance in Another Cinderella Story, Mary has hair that is dark brown in color while the others have hair of a lighter shade. The Rough-Faced Girl on the other hand

Varieties of Romanticism in Art Assignment Example | Topics and Well Written Essays - 1250 words

Varieties of Romanticism in Art - Assignment Example Looking closely at a particular finished artwork can help the viewer to understand important concepts within the given society, such as the relationship between women and men or the political forces at work. By comparing several works of the Romanticist period, one can begin to understand the underlying forces of the period and thus appreciate the individual approaches to a greater degree. Romanticism focused on more direct emotional expression than the highly constructed neoclassicist approach that preceded it. â€Å"An interesting schematic explanation calls romanticism the predominance of imagination over reason and formal rules (classicism) and over the sense of fact or the actual (realism)† (Holman & Harmon, 2001). Characteristics of the style identified by Welleck (2003) include a â€Å"revolt against the principles of neo-classicism criticism, the rediscovery of older English literature, the turn toward subjectivity and the worship of external nature slowly prepared during the eighteenth century† (196). The period idolized the imagination as the highest of human capacities due largely in part to its creative abilities and as a means of reacting to sweeping change in every aspect of life. It also esteemed nature not only because of the creative element inherent in it, but also because of the manifestation of the imagination that could be found with in it in the sense that we create what we see. The world was full of symbols and signs that would portend future events and actions which were knowable through their relationship to the myths and legends of antiquity. Thus, it was not necessary or even fully expressive to remain doggedly true to physical vision. This approach to art can be seen as early as 1781 in the work of Henry Fuseli. In his numerous paintings and drawings, this artist chose to focus on elements of the imagination and its effects on the living experience of the human animal. The Romantic approach can be

The Tay Bridge Disaster Essay Example | Topics and Well Written Essays - 1000 words

The Tay Bridge Disaster - Essay Example Also, the paper will discuss how modern engineering project management should prevent these from occurring and how the construction safeguards could prevent accidents like this. The collapse of the bridge brought into the picture the failure to maintain, optimum Engineering standards or practices by Thomas Bouch and his team. The first standard that has been not followed is the lack of strong cross bracing and fastening. That is, there is an insufficiency in cross bracing and its fastenings through out the bridge, which is very insufficient to sustain the force of strong gale. The next standard that has been missed is not testing the bridge for wind pressure according to appropriate levels. That is, Bouch used a wind pressure of just 10 lbsf/sq ft to test the design of the Tay Bridge. On the other hand, the well known fact is, Bouch, after completing Tay Bridge worked on the Forth Bridge and while working on the design of a proposed Forth bridge, he had used wind pressure up to 30 lbsf/sq ft. Another standard that have been given a go by, is the practice of moulding lugs into the wrought iron, when lugs are attached to it. Because of this mistake, the lugs were proved to break at loads of only 20 tons, while it is expected to withstand loads up to 60 tonnes (taybridgedisaster.co.uk). From the ethical perspective, Bouch, being the person in-charge, seems to have not shown great interest in the successful and foolproof completion of the project. That is, Bouch as well as the contractor appears to have not regularly visited the on-site foundry, where the iron scrap retrieved from the previously half-built bridge was recycled and remade into new structures. Because of this lack of commitment and ethical responsibility from Bouch’s side, the cylindrical cast iron columns, which supported the bridge, were of bad quality. All these inefficiencies only contributed to the collapse of the bridge, leading to many repercussions. The main result is that, the

How will the Professional MBA program prepare you for your chosen Scholarship Essay

How will the Professional MBA program prepare you for your chosen career path - Scholarship Essay Example roduce me to a broad spectrum of opportunities such as pursuing of an entrepreneurial route, progress for my business, handling new and challenging responsibilities and utilizing others such as marketing where my desire lies. This would ensure I achieve a wide array of knowledge base, insights and boost my poise to operate successfully in all environments. Most business executives in the corporate world with MBA degrees are embellished with high levels of responsibility and seniority within their job description. Coupled with my degree in criminal justice, the MBA degree will guarantee flexibility and fluidity in changing of career paths in order to exploit new opportunities hitherto underutilized. It will also to appreciate the complexities involved in business, bolster the practice of law and initiate conversance with the laws governing commerce. This diversity will put me up to date with the goings on in the world of business hence better decision making when it comes to issues of

The media and the Democratic Convention in Chicago 1968 Research Paper

The media and the Democratic Convention in Chicago 1968 - Research Paper Example The younger generation was always tuned on to television for updates. On the other hand, the country election were around the corner as the situation on the ground worsened. The elections that followed could see the 36th President in office.2 Consequently, in August 1967, the Democratic Party had a task of selecting a new candidate to replace President Baines Johnson, who had announced in March that he was not going to seek reelection of presidency. Moreover, many contenders vied for the ticket and included Johns vice president, former Senator Hubert Humprey, Robert Kennedy a New York senator but, unfortunately, was shot in Los Angeles hotel. The others were the South Dakota Senator George Mc Govern, who supporters of Kennedy had allegiance in and the Minnesota senator Eugene Mc Carthy who was an antiwar candidate who college students campaigned for from door to door. Rumors also spread that Kennedy’s younger brother was also entering the race even until the date of the convention but he did not.3 In August 1968, Humphrey was the likely winner of the Democratic ticket. Additionally, the convention had two objectives; one was to get the representative of the party in the November elections and the platform which could be used to run. Many questions came up whether the democrats could support the Vietnam War or adopt the plan advocated by McCarthy.4 Despite the different opinions coming from the delegates in relation to antiwar, the vice-president got more than 1000 votes to secure the ticket for the Democratic Party on August28. 5 Nineteen sixty-eight was a year with many problems in the city of Chicago. Chicago was a great and respected American city but in this year, it was far much behind than the rest. Following the assassination of Dr. King, race riots broke out in Chicago, and the police officers responded with a brutal violence. As Major Daley made orders on the â€Å"shoot to kill†, it changed the mythic proportion of

Supply Chain Management of Marks and Spencer Essay

Supply Chain Management of Marks and Spencer - Essay Example The essay "Supply Chain Management of Marks and Spencer" examines supply chain strategies of one of the most famous retailers in the UK, Marks and Spencer (M&S). The paper will also discuss supply chain structure that the company has been designed to implement its supply chain strategy. At the time of its initiation, M&S did not face much competition as the number of market players was very small. However, over the years the number of retail firms has increased in the UK as well as throughout the world with increasing popularity if retail culture. With the increase in the level of competition, M&S felt it necessary to devise some effective strategies to deal with increased market competition. In order to sustain in an intensely competitive market, it is very much necessary to retain existing customer base and expand it over time. M&S has rightly recognized this need and accordingly have placed focus on delivering goods in the best possible manner to its customers. This strategy is very helpful in improving the profitability of the firm and fostering a huge competitive advantage in the industry. M&S have now emphasized on delivering high-quality up-to-date garments at fair prices to its customers. M&S has also realized that purchasing from overseas suppliers is the most effective way of saving costs. As one of its competitive strategies, the company emphasizes on redesigning its stores in such a way that they provide more comfort, more space, and more convenience to the customers at the time of their shopping and browsing.... M&S has rightly recognized this need and accordingly have placed focus on delivering goods in the best possible manner to its customers. This strategy is very helpful in improving profitability of the firm and fostering a huge competitive advantage in the industry. M&S have now emphasized on delivering high-quality up-to-date garments at fair prices to its customers. (Neef,. 2004; Hensher, 2001) To survive under extremely competitive environment, it is necessary to improve its operational activities, suppliers, logistic, designing of stores and so on. The old stocks should be cleared from the warehouses to give way for new stocks that are up-to-dated. Apart from this, it is also necessary to provide due consideration on packaging of the products. M&S has identified all these needs for improving its competitive strength in the market and has designed competitive strategies accordingly to meet these needs. (Neef,. 2004; Hensher, 2001) M&S has also realized that purchasing from overseas suppliers is the most effective way of saving costs as well as of providing the products to the customers at lower prices. Hence, it has abandoned its policy of confining to UK suppliers only. (Neef,. 2004; Hensher, 2001) As one of its competitive strategy, the company is emphasizing on redesigning its stores in such a way that they provide more comfort, more space and more convenience to the customers at the time of their shopping and browsing. (Neef,. 2004; Hensher, 2001) Supply chain strategy: For a large scale of business enterprises, Marks and Spencer, one of the famous retailer in Britain, had set a very big example. For a very long time, Marks and Spencer has been a leader in the industry where there is a team of local suppliers working

The war between US and Iraq Annotated Bibliography

The war between US and Iraq - Annotated Bibliography Example Through such process, the authors were able to focus on the elite-mass dynamic seen in setting forth foreign policy options. The authors also assessed public opinion on threat perception, support for the war, and the beliefs about the possibility of terrorist attacks if the US did not implement retaliatory actions against Iraq. This study helped me gather as much information as possible on the public opinion of the war. This article discussed how the Iraqi War has sent Iraq into a political chaos and how the United States had no justified reason for its presence in Iraq. The article also discussed the insurgencies seen in Iraq as a reaction to the actions of the US government. This article brings to a sharper focus the unsupported claims of the US against Iraq and how such unfounded claims have only created more disasters for Iraq, if not for the US. This article helped me evaluate the impact of the war on Iraq and how US actions continue to cause chaos on Iraq. This research reviewed the premise that conservative-liberal identity functions as a preparation to adopt beliefs and attitude about newly politicized issues coincide with the socially accepted meanings of conservatism-liberalism. Study 1 of this research assessed in 2000, had a crucial prospective effect on the support in the invasion of Iraq in 2002 and in 2004, in relation to controlling substantive ideology, party identity, and demographics. For Study 2, the research discussed the conservative and liberal identifiers adopted positions on farm subsidy policies based on different signs which ideological groups support. I chose this paper because it discussed the impact of political discourse on the organization of political ideology. It also provided a theoretical understanding of the issue The above article is a personal account and analysis by the author on the events which unfolded in Iraq since the US declared war against it. The US troops have largely made

Mary Shelleys Frankenstein Essay Example for Free

Mary Shelleys Frankenstein Essay Shelley wanted the audience in this scene to feel greater sympathy for the monster as he is turned away yet again by mankind because he is simply judged too quickly because of his appearance. Branagh remains true to Shelleys intentions in this scene by making the monster appear heartbroken. Cries echo through the forest, he runs with a limp through the forest away from the house and collapses on the ground as soon as he thinks he is out of sight from the family. These things were very good for building up sympathy for the monster. This scene is also where we see the monster beginning to change. He goes back to the house and sees that the family have fled their home, this makes the monster so angry and upset that he sets fire to the cottage and swears that he will have revenge on the man who made him, so he reads the journal left in his jacket and goes to Geneva to get his revenge on Frankenstein. Branagh made this part of his film very dramatic by using very fast powerful music against the roaring of flames and black smoke that engulfed the cottage and the monster stood in front of the cottage looking fiercely at the flames with a look of anger in his eyes. This is good because it shows that the emotions and feelings which the monster has been hiding are all being forced out of him because he is determined to find answers to all the questions he has about his life and this is exactly how Shelley intended this scene to look as the monster suddenly realises his purpose of life is an experiment. When the monster kills William and sets up Justine Branagh managed to plan this very well because Shelley wanted the monster to kill the little brother and also be able to plant it on Justine without losing sympathy from the audience for the monster and Branagh is able to do this by not actually showing the monster killing William. In the next scene the monster and Frankenstein meet in the mountains, the monster has his chance to get his answers from the man who made him. The monster comes across as being very certain of his knowledge and his feelings. This appears to scare Frankenstein because he doesnt actually know why he did something so evil and didnt realise the greatness of the pain he had caused. Shelley wanted this conversation between the monster and Frankenstein to make the audience judge the monster as the good guy and Frankenstein as the bad guy. Branagh does this by making the monster talk and ask a lot more questions than Frankenstein. Frankenstein has a look of shock on his face throughout the conversation but the monster looks very certain and meaningful of everything he says to Victor, again making the monster seem superior to Frankenstein. Shelley wanted the audience to feel that the monster only did certain evil things because he was given emotions and senses but not shown how to use them and Branagh fits that into the film by the monster asking Victor Why he made him and brought him into the world to live and so very quickly and then left him to die. Shelley believed that no child should be bought into the world without being loved by parents; Branagh shows this belief of Shelleys by building up a father and son relationship and shows the father-like character abandoning an innocent child-like character. The monster asks one thing of Frankenstein and that is to have a bride that will look as ugly as him so that she would accept him for whom he is and vows that they will never be seen again. This again shows the maturity and sense of the monster. Frankenstein grants him this and promises he will have his bride. Frankenstein doesnt keep his promise and returns home to marry his bride and travel away with armed men on their wedding night so they will have protection if the monster does come to kill them which he promised he would if he did not get his bride. It is a dark and stormy night and raining very heavily which makes it very hard to see through the dark night, Frankenstein goes outside because he thinks he hears the monsters pipe playing and leaves Elizabeth on her own, quiet slow music start to play but it starts to get faster and louder which says to the viewer that the monster is close by, which he is because he climbs through the window and punches Elizabeth in the chest and pulls her heart out, spraying blood everywhere making a very gruesome sound and very nasty to look at. Frankenstein refuses to accept the death of his new bride so he takes her back to his laboratory and starts cutting up Justines body and stitching parts of her and Elizabeth together and revives her so once again we see all the gory bits of limbs being cut up and sewn together, as Elizabeth awakens she realises what Victor has done to her as the monster comes into the laboratory and mistakes her for his bride which victor had promised her, she becomes so angry and upset with the fact that she has been part of Victor playing God she sets herself on fire and runs through the house alighting everything. This scene is again highly over exaggerated, as it is very gory and horrifically unnecessary to the viewer. As Walton and his crew come to burn Frankensteins body the monster emerges from the distance and is offered by Walton to come with them, this being his first offering of acceptance to mankind, the monster says he was my father and decides to set himself alight upon Frankensteins body so that they burnt together. I think Branagh managed to remain true to most of Shelleys intentions of Frankenstein by portraying the monsters character as a very innocent, childlike character linking it all in very well with Shelleys beliefs she had before and whilst writing Frankenstein. Branagh definitely pandered to the accepted stereotype of the horror genre by showing a lot of close-ups of quite disturbing images and very horrific noises that went with the images that a book cant do. Branagh also used a very wide range of music that managed to fit into all the horrific parts of his film very well. Charlotte Tufnell 10M Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Mary Shelley section.

Strengthen the weaknesses of line managers in HR system

Strengthen the weaknesses of line managers in HR system Introduction In Guests (1987) four components of concept of integration in HRM, line managers were argued that they must undertake their responsibilities in terms of HR work by using supports from specialists, which was commented as critical for succeeding in business management. Indeed, line managers play a significant role in organisational strategy, converting HRM to performance and connecting them by individual response (Boaden et al, 2008). In Purcell and Hutchinsons (2007) casual chain theory, line managers were also defined as a role devolving intended HR practices into actuality. Although positing a crucial status in implemental sense, line managers were found a weak link in the devolvement of HR practices. This essay is divided into two parts: Firstly, reviewing previous literatures and empirically analysing the weakness of line managers on the theoretical basis of Marchington and Wilkinsons (2008) view. Secondly, exemplifying ways of strengthening line managements contribution in organisations, by trying to address the problems presented in the first part. Literature Review A large number of previous literatures argue that line managers are the weak link in devolving HR intention into implementation. In Marchington and Wilkinsons (2008) view the weaknesses of line managers can be primarily put into four components: lack of relevant HR skills, disdain for HR work, competing priorities and increased workload, inconsistencies in application of HR functions. In the past, these four weaknesses were also discovered and demonstrated by many researches. From McGovern et als (1997) case study of seven organisations from different sectors, in which semi-structured interviews were conducted after the collection of empirical materials, the fact the low educational and technical skills severely constrained the conversion of HR to line management was exposed in a single case study. According to Maxwell and Watsons (2006) survey in UK Hilton hotels on the level of both line managers and HR specialists, some barriers to line managers involving in HR was examined and the results showed that opinions from HR specialists majorly reckoned lacking of skills in terms of time management, delegation, supporting learning and communication constrained HR to be devolved to line management. While the result also indicated that line managers did not agree with their counterparts in HR departments. Different from McGovern et als (1997) study, the employees views, which were more likely to be objective and reliant, were not collecting in Maxwell and Watso ns (2006) survey. Nonetheless, in the deep interviews with 40 line managers, the involved interviewees did not see themselves as HR experts and thought doing HR work was difficult for them (Renwick, 2003). Also, in Whittaker and Marchingtons (2003) study, it was also argued less skilled and competent line managers were less likely to perform effectively in HR aspects without support from personnel practitioners. In a pilot case study in NHS Trust conducted by Renwick (2000), one clinical director from the line held an old view of HR that they were slow inefficient and made mistakes, surprisingly, a strong hostile description was made as they were awful, just absolutely awful. Regretfully, in this study there was only one case, and, evidence of line managers disdain for HR work was merely from one individual. However, in his research two years later, in all the negative aspects found though interviewing 40 line managers from 3 organisations, line managers admitted that they sometimes slack in completing HR work (Renwick, 2003). Also, an interesting phenomenon in Maxwell and Watsons (2006) survey was the response rate of questionnaire from HR was notably higher than line managers, which more or less indicated line managers were less interested and enthusiastic in HR issues. Many line managers also reckon that the converting too many HR work on them might prevent them from undertaking their own duties (Whittaker and Marchington, 2003). From the investigation in non-clinical managers in NHS Trust the conflicting work priorities exposed that HRM concerns were low on the list of priorities (Boaden et al, 2008). Generally, the competing priorities on the line managers side means they concern more on capturing immediate outcomes. From three groups of organisational constraints in McGovern et als (1997) study, a short-termism was discovered in line management and line managers were less interested in using their time to do activities without an immediate return. Consequently, the greater workload and pressure was generated if line managers were devolved HR functions (Cunningham and Hyman, 1995; Maxwell and Watson, 2006). In Bowens (2004) study, consistency was regarded as a strength of HRM system. However, in practice inconsistencies such as role ambiguity, low efficiency and conflict between line managers and HR specialists often happened. Interesting findings can be extracted in Cunningham and Hymans (1999) research, in which semi-structured interviews and postal questionnaires were conducted in four cases from different industries. The line managers on the one hand were satisfied with the general background suggestions about administrative issues from HR counterparts; on the other hand they commented the HR functional supports from HR specialists in terms of leadership, training and development were poor and even unnecessary. Obviously, due to the inconsistencies, the line managers preferred to be less involved in HR works. Strengthen line management in HR sense As the devolvement of HR functions to line managers is becoming increasingly recognised as important for the raising organisational performance (Guest, 1987; Purcell and Hutchinson, 2007; Boaden et al, 2008), it is essential to strengthen the weaknesses of line managers in HR system mentioned above, which can be regarded as suit the remedy to the case, while the remedy is not particular designed to single weakness but comprehensive as the weaknesses themselves are interacting. From my personal perspective, the central core of strengthening line management in HR sense is to make line managers realise they are responsible for HR and their duties are important. If line managers cannot realise their responsibilities or even disdain for HR work, the direct result might be that they are not inclined to get involved, and therefore difficult to gain their participation (Boaden et al, 2008). However, in many circumstances we found a reason that line managers neglecting such responsibilities as a result of their bad impression on HR work as well as supports HR specialists, which can be categorised as a kind of inconsistency in Marchington and Wilkinsons (2008) classification of line managers weaknesses. Actually, sometimes it is not line managers do not want supports from HR specialists but the supports are poor in their opinions (Cunningham and Hyman, 1999). Therefore, the ways of strengthening the contribution of line managers in HR system, which will be exemplif ied in terms of recruitment and selection, performance management and employee involvement and participation (EIP) in the following paragraphs, can be discussed with HR specialists involved as well. As for recruitment and selection, on the one hand, the internal recruitment for line management roles might be an effective and efficient way to strengthen the contribution of line managers in HR sense. Nowadays, although the ideal situation is that HR functions can be consistently devolved in line management, it seems not so practical for line managers to spend too much time in doing these. The phase time-consuming was used by clinical director from the line to describe new system introduced by HR (Renwick, 2000). The line manager involved in Boaden et als (2008) research might represent a usual notion, I am realistic enough to know where the priority is going to lie at the end of the day. Actually, not only line managers are confronted with short-termism (McGovern et al, 1997) problem, but HR specialists also facing difficulties needing to be addressed soon. In Legges (2005) vicious circle theory, problems happened without getting HR involved, and HR was asked to assist in tacklin g them and give instantly effective supports, which might lead to potential negative impacts in the future. After this process, HR specialists were more likely to be blamed and given less trust in making important decisions. Therefore, the feasible approach introduced here is recruiting and selecting people within the organisations. Specifically, selecting those who have HR working experience or HR special knowledge and skills beforehand, and moving them to the line management work. By doing this, two difficulties may be eased to a large extent in a short time: the disdain for HR work and the deficiency of HR skills. On the other hand, line managers contribution can be enlarged in the conducting recruitment and selection of employees for organisations. That is, clear division of work and responsibilities between line managers and HR specialists. What is more, line managers should be allocated with components related to operational work and special skills of candidates, avoiding spec ialised HR functions that they are difficult to drive. Performance management is an important aspect in which line managers role in HR system should be consolidated, as shown in Cunningham and Hymans (1995) finding that appraisal of subordinates posited the first place in all the main responsibilities of line managers in managing human resources. Example of Selfridge in Purcell and Hutchinsons (2007) can be used to demonstrate the way of improving performance appraisal in line management. In the survey of employees attitudes in Selfridge, the gap between intention and implementation also existed there and over 40 percent of respondents dissatisfied with the performance appraisal system. The comments and suggestions raised by employees, such as consistent approach and regular appraisal for every employee, more recognition from management, getting employees involved and listening to their voice, working closer to employees, brought companys attention. Therefore, measures such as involving company culture into management, refining the line managers role to be more integrated and consistent to the HR system, especially, associating performance appraisal more to career development and opportunities. In Thornhill and Saunders (1998) case study in Newco, a part of large scale organisation in public sector, evidence accumulated exposed that involving and communicating with employees could enhance employees commitment. Therefore, getting employees involved may be an effective way to improve line mangers decision and practices relating to HR. From my personal experience, it was also proved to be making sense. One of my college classmates, who works as a line manager in China Mobile, the most powerful telecommunication company in China, complained to me that the policies and objectives made by managers were always failed to be achieved by employees two months ago. However, last week he told me the situation was better after adopting my suggestion that asking for employees advice and concerning their voice all the time. On the other side, negative effects were generated if integration within management level was insufficient (Thornhill and Saunders, 1998). To resolve this problem, the leader-member exchange (LMX) theory seems to be an appropriate model, in which the inconsistence between line managers and HR specialists are likely to be somewhat eased. Example can be used from Gerstner and Days (1997) meta-analysis, that the LMX was demonstrated to be positively associated with employees performance, to illustrate the effectiveness of this model. Conclusion As demonstrated by many empirical collections, the devolvement of HR functions to line management is significantly affecting the performance of organisations. While line manager was regarded as weak link in HR system, and, the weaknesses can be found in many previous researches and literatures, in categories of Marchington and Wilkinsons (2008) view. Arguably, the line managers role in HR sense can be strengthened and they should be conscious that their new role and new responsibilities are crucial. The internal recruitment and selection of line manager from workers with HR background may reduce the prejudice and technical weakness of line management, and clear division of duties in recruiting and selecting can alleviate the inconsistence between line and HR. Furthermore, example from Selfridge researched by Purcell and Hutchinson (2007) demonstrated how the role of line manager can be consolidated in terms of performance management. Also, the significance and effectiveness of EIP wa s exemplified, and, the LMX model was introduced to consolidate the communication within management level. References 1. Boaden, R et al. (2008) Improving Health through Human Resource Management: The Process of Engagement and Alignment, CIPD. 2. Boselie, P, Dietz, G and Boon, C. (2005) Commonalities and Contradictions in Research on Human Resource Management and Performance, Human Resource Management Journal, 15, 3, 67-94. 3. Bowen, D and Ostroff, C (2004) Understanding HRM-firm performance linkages: the role of the strength of the HRM system, Academy of Management Review, 29, 2, 203-221. 4. Caldwell, R (2003) The Changing Roles of Personnel Managers: Old Ambiguities, New Uncertainties, Journal of Management Studies, 40, 4, 983-1004. 5. Cunningham, I and Hyman, J. (1995) Transforming the HRM Vision into Reality: The Role of Line Managers and Supervisors in Implementing Change, Employee Relations, 17, 8, 5-20. 6. Cunningham, I and Hyman, J. (1999) Devolving Human Resource Responsibilities to the Line: Beginning of the End or a New Beginning for Personnel?, Personnel Review, 28, 1/2, 9-27. 7. Currie G and Procter S. (2001) Exploring the Relationship between HR and Middle Managers, Human Resource Management Journal, 11, 3, 53-69. 8. Francis, H and Keegan, A. (2006) The Changing face of HRM: in Search of Balance, Human Resource Management Journal, 16(3), 231-249. 9. Gerstner, C and Day, D. (1997) Meta-analytic Review of Leader-Member Exchange Theory: Correlates and Construct Issues, Journal of Applied Psychology, 82, 6, 827-844. 10. Guest, D. (1987) Human Resource Management and Industrial Relations, Journal of Management Studies, 24, 5, 503-521. 11. Guest D et al. (2003) Human Resource Management and Corporate Performance in the UK, British Journal of Industrial Relations, 41, 2, 291-314. 12. Harris, L. (2001) Rewarding Employee Performance: Line Managers Values, Beliefs and Perspectives, International Journal of Human Resource Management, 12, 7, 1182-1192. 13. Huselid M. (1995) The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance, Academy of Management Journal, 38, 3, 635-672. 14. Kang, D and Stewart, J. (2007) Leader-Member Exchange (LMX) Theory of Leadership and HRD: Development of Units of Theory and Laws of Interaction, Leadership Organisation Development Journal, 28, 6, 531-551. 15. Khilji, S. and Wang, X. (2006) Intended and Implemented HRM: the Missing Linchpin in Strategic HRM Research, International Journal of Human Resource Management, 17, 7, 1171-1189. 16. Legge, K. (2005) Human Resource Management: Rhetorics and Realities. Palgrave Macmillan. 17. Marchington M and Wilkinson A. (2008) Human Resource Management at Work, 4th edition. CIPD. 18. Maxwell, G and Watson, S. (2006) Perspectives on Line Managers in Human Resource Management: Hilton Internationals UK Hotels, International Journal of Human Resource Management, 17, 6, 1152-1170. 19. McGovern, P. et al (1997) Human Resource Management on the Line?, Human Resource Management Journal, 7, 4, 12-29. 20. Perry, E and Kulik, C. (2008) The Devolution of HR to the Line: Implications for Perceptions of People Management Effectiveness, International Journal of Human Resource Management, 19, 2, 262-273. 21. Purcell, J. and Hutchinson, S. (2007) Front-line Managers as Agents in the HRM-performance Causal Chain: Theory, Analysis and Evidence, Human Resource Management Journal, 17, 1, 3-20. 22. Renwick, D. (2000) HR-Line Work Relations: A Review, Pilot Case and Research Agenda, Employee Relations, 22, 2, 179-205. 23. Renwick, D. (2003) Line Manager Involvement in HRM: An inside View, Employee Relations, 25, 3, 262-280. 24. Thornhill, A and Saunders, M. (1998) What if Line Managers dont Realize Theyre Responsible for HR?, Personnel Review, 27, 6, 460-476. 25. Wall, T and Wood, S. (2005) The Romance of HRM and Business Performance, and the Case for Big Science, Human Relations, 58, 4, 429-462. 26. West M et al. (2002) The Link between the Management of Employees and Patient Mortality in Acute Hospitals, International Journal of Human Resource Management, 13, 8, 1299-1310. 27. Whittaker S and Marchington M. (2003) Devolving HR Responsibility to the Line: Threat, Opportunity or Partnership, Employee Relations, 25, 3, 245-261.

China’s Economic Expansion: Implications for U.S. Trade and Hegemonic Stability

China’s Economic Expansion: Implications for U.S. Trade and Hegemonic Stability A Changing Global Landscape China is very rapidly approaching economic parity with the United States, which may lead to significant global shifts in power.   Hegemonic stability theory suggests that an international system is more likely to remain stable if a single player is a dominant world power, thus the global equilibrium tends toward a hegemonic state.[1]   The United States emerged as the global hegemon after World War II, specifically in terms of economic power, and has largely provided stability for the global economic system since that time.   While the U.S. has been able to maintain this position throughout most of the 20th Century, China is rapidly rising as an influential economic player and could potentially displace the United States as the global economic leader.   China’s ambitious economic expansion projects, including the New Silk Road initiative and Made in China 2025, have the potential to shift the nexus of economic power from the United States’ and the West toward a Europe-China-centric scenario.   Additionally, the rise of populist-nationalist political rhetoric within the United States could portend a policy shift toward economic protectionism, which would further accelerate the demise of the U.S. economic hegemon and the rise of China as its successor.   It would be in the best interest of the United States to engage with China in a cooperative and mutually beneficial way, perhaps even as a partner in China’s economic development initiatives, in order to preserve American economic prosperity. China’s Economy: An Historic Overview Insight into China’s modern strategy for economic expansion is only possible within the context of China’s past.   Throughout most of China’s history, the Chinese economy was barely able to meet the basic needs of the country’s huge population, including its basic nutritional needs.[2]   Drought, war and social unrest often led to periods of famine and mass starvation before 1949, when the Chinese Communist Party came to power.[3]   After this transition, food storage became centrally controlled by the government.   This method allowed the country to successfully avert famine, and food production grew rapidly after 1949.   This increase in productivity was largely matched by population growth until the one-child policy was instituted in the 1980’s, thus the increased production capacity was not able to outpace essential consumption needs, and very little surplus was produced.[4] The long-term goal of the Communist party was to transform China into a modern, industrialized nation with improved living standards and minimal economic disparity (i.e. a classless society), and to modernize military equipment.   The government leadership initially adopted the Soviet economic model, which focused on achieving a high rate of economic growth that emphasized industrial development at the expense of agricultural development.   Through this process, a solid foundation was created in iron and steel manufacturing, coal mining, cement making and other modern industrial technologies.   Although the government also endeavored to facilitate the mobilization of agricultural resources by encouraging farmers to organize into increasingly large and socialized collective units, the results were not as dramatic as the level of growth within the industrial sectors.[5] In response to the tepid growth in the agricultural sector, in 1957 the Chinese government largely shifted authority for economic decision making to the provincial, county, and local level.   During this time, the Chinese leadership abandoned the Soviet model and instead adopted an approach that relied on spontaneous efforts by the entire population to induce a â€Å"great leap† within all economic sectors at once, which helped to stimulate agricultural growth.   The initial problem with this approach was the lack of sufficient capital to invest in both industrial development and agriculture simultaneously.   To overcome this problem, the leadership attempted to create capital within the agricultural sector by building vast irrigation systems, employing huge teams of underemployed farmers.[6] Despite these advances, the Cultural Revolution of the 1960s under Mao Zedong severely stifled technological innovation within China.[7]   This was largely a political phenomenon, where the Communist Party attempted to consolidate power by expelling any hint of budding capitalist ideas, Chinese traditionalists, and intellectuals.   However, it had a pronounced effect on the growing Chinese economy.   Factory managers were largely replaced with Communist Party operatives who had very little knowledge of management or of the enterprise they were supposed to run.   Engineers, scientists, and other professional personnel were sent to the countryside as laborers, or were jailed as dissidents.   Additionally, the Cultural Revolution forced the closing of Universities, which severely hindered China’s ability to develop new technology.   This loss of key knowledge resulted in a 14% decline in industrial production by 1967.[8] In the late 1970’s, after the death of Mao, the Chinese government reaffirmed the modernization program espoused prior to the Cultural Revolution.[9]   The Chinese leaders determined that the centrally planned economy had failed to produce sufficient economic growth, and had caused China to fall behind the industrialized powers of the West and the newly industrialized Asian nations.   While the Communist leadership did not want to completely abandon the centrally planned economy idea, it strived to make it work better by increasing the role of market mechanisms and by reducing the level of centralized government control.   For industry, this included increased autonomy and the ability of managers to keep profits instead of remitting everything earned to the state.   While some key industries were still centrally controlled, individual enterprise was allowed (to an extent) as a means to incentivize economic growth and to reduce unemployment.[10] In recent history, China has been less of an innovator and more of an imitator of foreign technology and innovations.   China’s modern industrial development paradigm lags behind that of the developed world.   While the Chinese government has policy initiatives to encourage internal research and development and technology transfer from outside economies, shortcomings from the pre-reform, planned economy era have constrained China’s ability to efficiently innovate.   China’s Modern Innovation Strategy   In order for any economy to innovate and grow, individual firms must focus on a combination of internal research and development efforts and external technology acquisition.   In this context, the definition of â€Å"technology† is expanded from the vernacular to include processes and ideas that enhance a firm or organization’s ability to compete.[11]   Establishing a strategy that combines these efforts most efficiently is necessary to maximize overall economic development.[12]   In modern microeconomic theory, internal research and development and external technology acquisition are considered to be complimentary innovation strategies.   Economic activities are complimentary if the adoption of one does not preclude the other, and if the sum benefit of implementing both activities concurrently is greater than the benefit of implementing just one or the other.[13]   Assuming the complementarity of internal research and development and external technology a cquisition, authors Fu, Pietrobelli and Soete argue that the absorptive capacity of any small or medium firm within a developing economy is the limiting factor to successfully executing technology transfer.[14]   The authors define absorptive capacity as â€Å"a firm’s ability to recognize the value of new information, assimilate it, and apply it to commercial ends.†[15] In another study, Authors Hou and Mohnen[16] tested the complementarity of internal research and development and external technology transfer in Chinese firms and found that the two technology acquisition strategies are indeed complimentary, but that external technology acquisition yielded higher returns than internal research and development for small and medium firms.   Additionally, the authors found that state-ownership of firms correlated with both product and process innovation, presumably because of increased access to financial and policy support from the central government.   This relationship would likely increase the absorptive capacity of the firm.   This suggests that small and medium firms with no government connection may be at a disadvantage due to a reduced absorptive capacity, and may be incentivized to work closely with the central Chinese government in order to acquire the necessary resources to compete within the Chinese and global marketplace.[17]   Thus , while China’s modern economic development strategy is ostensibly about supporting the expansion of small, private firms, state-connections are highly incentivized by the market. The New Silk Road China’s New Silk Road initiative is a logical extension of China’s economic expansion and modernization efforts.   This initiative is an allusion to its namesake trade network stretching from China to Central Asia and the Middle East, which was established over 2,000 years ago.[18]   In 2013, China proposed establishing a modern analog to the ancient Silk Road; however, instead of transporting silk and spices, this would build a network of railways, pipelines and utility grids to link China to the Middle East and Eastern Europe via Central Asia.[19]   Also known as the One Belt One Road Initiative (OBOR), this massive infrastructure project aims to create the world’s largest network for economic cooperation.   This development would make it much more efficient for China to trade with 65 countries, representing 60 percent of the global population.[20]   China markets the initiative as a net win for all parties involved, and host governments see the New S ilk Road as an opportunity for job creation, economic development, and participation in the global supply chain.[21]   The New Silk Road initiative would allow China to more efficiently project soft power within Asia, Africa and Europe, which could have significant trade and national security implications for the United States.   Chinese firms have increased their foreign investment within partner countries in order to pave the way for the New Silk Road.   According to the Economist, several economic research organizations predict that the total Chinese investment abroad could rise to $2 trillion USD by 2020.[22]   For comparison, this figure was less than $800 billion USD at the end of 2014.[23]   As stated previously, Chinese firms are strongly incentivized to maintain connections with Chinese state-owned entities (or to be state-owned entities themselves), thus it stands to reason that much of the value earned through this investment will directly benefit the Chinese government.   The Chinese regime’s entanglement within the region will likely introduce significant hurdles to U.S. activities, and may diminish U.S. influence in Central Asia, the Middle East, and possibly Europe.   It is worth noting that Beijing established $100 billion USD Asian Infrastructure Investment Bank (AIID), a multinational funding body, to support New Silk Road investments. [24]   The AIID currently has 57 members, including Germany, the United Kingdom, France and Russia.[25]   Notably absent is the United States. Made in China 2025 Not only is China expanding its economic reach and soft power influence within Eurasia via the New Silk Road, but it is also working to shift its overall production upmarket from low level manufacturing to advanced technology development.[26]   Made in China 2025 is an effort to completely upgrade Chinese industry.   The Chinese government has outlined clear principles establishing the goals of the initiative, including a desire to comprehensively upgrade Chinese industry by making it more efficient so that it can participate in the highest-level global production chains.   It also strives to create more innovation-driven manufacturing that emphasizes quality over quantity, environmentally sustainable development, and human capital management.[27]   While these are worthy goals for any country, China’s upmarket shift from manufacturing large quantities of inexpensive, low-quality goods to high-tech, high-quality products could disrupt the global market for high-tech go ods because of China’s large production capacity.   In the same way that inexpensive Chinese manufacturing has shifted labor from the United States to China, an upmarket shift in China’s manufacturing may have the same effect on highly skilled workers within the United States. Implications for the United States In order to mitigate the global effects of China’s economic expansion that may be detrimental to the U.S. strategic position, it is imperative for the United States to engage with China in a cooperative and mutually beneficial way.   President Donald Trump has been a vocal critic of trade deals, and has been especially harsh on Beijing, effectively blaming low Chinese labor costs for the perceived lack of American jobs.[28]   According to the United States Trade Representative, two-way trade with China was $598 billion USD in 2015, thus making China the United States’ largest trading partner.[29]   If the anti-Chinese rhetoric manifests as higher tariffs on Chinese imports, China may focus its trade efforts away from the United States and toward its New Silk Road partners, thus significantly reducing U.S. international trade.[30] The impact of arresting trade with China on U.S. gross domestic product (GDP) is difficult to ascertain due to competing variables, but it is likely to have a net negative effect.   While tariffs would increase the net exports variable used in calculating GDP (the U.S. is a net importer from China), they may adversely affect other factors that contribute to GDP.   For example, Chinese goods are less expensive to produce than U.S. and most European goods.   Thus, if the United States diverts its import activities from China to Europe or increases domestic production, these goods will likely be more expensive than the Chinese alternatives, thus reducing overall domestic consumption within the United States.   This new equilibrium would also affect the supply of domestic goods as demand decreases, thus also reducing U.S. investment in domestic production (and a subsequent reduction in demand for labor).   Overall, this may lead to a net decrease in the U.S. GDP and a reduction in available jobs within the United States.   This American jobs loss would be exacerbated further as China shifts its manufacturing capabilities upmarket via the Made in China 2025 initiative, which may induce the offshoring highly skilled U.S. jobs in addition to skilled labor.   Not only would tariffs further incentivize China to focus its trade efforts on its New Silk Road partners, but they may evoke the second order effect of encouraging Europe to look to China for economic leadership.   This could occur if China responds to U.S. tariffs by accelerating its economic expansion into Eastern Europe.   This would likely reduce U.S. economic influence in Europe, and thus limit the U.S. ability to project soft power within the region.   This would further shift the hegemon toward China as the global economic leader.   In conclusion, Chinese economic expansion activities, including the New Silk Road Initiative and Made in China 2025, could lead to a global hegemonic shift.   This is especially true as China expands its influence toward Europe.   As the United States’ global influence wanes, Europe and U.S. allies within Central Asia may turn to China as the new hegemon – a new global economic leader.   Global power structures are dynamic, and it is unlikely that the future global power landscape will encompass a unipolar U.S. hegemon as it has in the past.   However, a multipolar hegemon including both the United States and China is surely possible.   It would benefit the United States to engage China in a cooperative and mutually beneficial way by preserving economically liberal trade arrangements.   Additionally, the U.S should strive to maintain its position as a major soft power player in Asia and Europe and work diligently to maintain its trade relationships withi n Europe and Central Asia, possibly through partnering with China on the New Silk Road.   This is of great strategic importance not only for the U.S. national security, but also for continued American economic prosperity. Bibliography Buck, John.   China’s Farm Economy. (University of Chicago Press, 1930). Carbaugh, Robert. Contemporary Economics: An Applications Approach. (Cengage Learning, 2006). Christensen, Clayton M.   The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change).   Harvard Business Review Press.   January 5, 2016. Cohen, Tyler.   â€Å"Seeing China Through its Economic History.† Bloomberg (July 25, 2016), Accessed 4 April 2017. https://www.bloomberg.com/view/articles/2016-07-25/seeing-china-through-its-economic-history Cohen, Wesley M. and Levinthal, Daniel A., Absorptive capacity: A new perspective on learning and innovation, Administrative Science Quarterly 35, no 1 (1990):128-152. Elisseeff, Vadime.   The Silk Roads: Highways of Culture and Commerce.   Berghahn Books, 2000. Fu, Xiaolan, et al., â€Å"The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up†, World Development 39, no 7 (July 2011): 1204-1212. Gramer, Robbie.   â€Å"All aboard China’s ‘New Silk Road’ Express.† Foreign Policy.   4 January 2017. Guluzian, Christine R. â€Å"Making Inroads: China’s New Silk Road Initiative.†Ã‚   Cato Journal, Vol. 37, No. 1 (Winter 2017). Heilmann, Sebastian.   â€Å"China’s Technology Grab.† The International Economy.   Spring 2016. Hou, Jun and Mohnen, Pierre, â€Å"Complementarity between in-house R&D and technology purchasing: evidence from Chinese manufacturing firms†, United Nations University Working Paper, (August 2011). Jinchen, Tian. ‘One Belt and One Road’: Connecting China and the World. McKinsey&Company: Capital Projects and Infrastructure.   July 2016. â€Å"Made in China 2025.†Ã‚   Center for Strategic and International Studies.   Accessed 31 March 2017. http://www.csis.org/analysis/made-in-china-2025. Miller, Berkshire, J.   â€Å"Dissecting Trump’s Hardline Rhetoric on China.† China U.S. Focus.   Accessed 4 April 2017.   http://www.chinausfocus.com/foreign-policy/dissecting-trumps-hardline-rhetoric-on-china. Morrison, Wayne M.   â€Å"China’s Economic Rise: History, Trends, Challenges and Implications for the United States.† Congressional Research Service Report. (October 21, 2015). Oatley, Thomas.   International Political Economy, 5th Edition.   New York: Routledge, 2016. Office of the United States Trade Representative.   The People’s Republic of China.   Accessed 4 April 2017.   https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china. Slate, Robert. â€Å"Competing with Intelligence: New Directions in China’s Quest for Intangible Property and Implications for Homeland Security,† Homeland Security Affairs 5, no 1 (January 2009):1-27. â€Å"The New Silk Road.†Ã‚   The Economist Special Report. September 2015. Worde, Robert, et al., ed, China: A Country Study (Federal Research Division, U.S. Library of Congress, 1987). [1] Thomas Oatley.   International Political Economy, 5th Edition.   New York: Routledge, 2016. [2] John Buck.   China’s Farm Economy. (University of Chicago Press, 1930). [3] Robert Worde, et al., ed, China: A Country Study (Federal Research Division, U.S. Library of Congress, 1987), 207. [4] Ibid, 207. [5] Ibid, 215. [6] Ibid, 216. [7] Tyler Cohen.   â€Å"Seeing China Through its Economic History.† Bloomberg (July 25, 2016), Accessed 4 April 2017. https://www.bloomberg.com/view/articles/2016-07-25/seeing-china-through-its-economic-history [8] Ibid, 220. [9] Wayne M. Morrison.   â€Å"China’s Economic Rise: History, Trends, Challenges and Implications for the United States.† Congressional Research Service Report. (October 21, 2015). [10] Ibid, 223. [11] Clayton M. Christensen.   The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change).   Harvard Business Review Press.   January 5, 2016. [12] Jun Hou and Pierre Mohnen, â€Å"Complementarity between in-house R&D and technology purchasing: evidence from Chinese manufacturing firms†, United Nations University Working Paper, (August 2011): 1-23. [13] Robert Carbaugh. Contemporary Economics: An Applications Approach. (Cengage Learning, 2006), 35. [14] Xiaolan Fu, Carlo Pietrobelli, Luc Soete, â€Å"The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up†, World Development 39, no 7 (July 2011): 1204-1212. [15] Wesley M. Cohen and Daniel A. Levinthal, Absorptive capacity: A new perspective on learning and innovation, Administrative Science Quarterly 35, no 1 (1990):128-152. [16] Hou and Mohnen. [17] Robert Slate, â€Å"Competing with Intelligence: New Directions in China’s Quest for Intangible Property and Implications for Homeland Security,† Homeland Security Affairs 5, no 1 (January 2009):1-27. [18] Vadime Elisseeff.   The Silk Roads: Highways of Culture and Commerce.   Berghahn Books, 2000. [19] Tian Jinchen, ‘One Belt and One Road’: Connecting China and the World. McKinsey&Company: Capital Projects and Infrastructure.   July 2016. [20] Robbie Gramer.   â€Å"All aboard China’s ‘New Silk Road’ Express.† Foreign Policy.   4 January 2017. [21] Christine R. Guluzian. â€Å"Making Inroads: China’s New Silk Road Initiative.†Ã‚   Cato Journal, Vol. 37, No. 1 (Winter 2017). [22] â€Å"The New Silk Road.†Ã‚   The Economist Special Report. September 2015. [23] Ibid. [24] Guluzian, Cato Journal. [25] Ibid. [26] Sebastian Heilmann.   â€Å"China’s Technology Grab.† The International Economy.   Spring 2016. [27] â€Å"Made in China 2025.†Ã‚   Center for Strategic and International Studies.   Accessed 31 March 2017. http://www.csis.org/analysis/made-in-china-2025 [28] J. Berkshire Miller.   â€Å"Dissecting Trump’s Hardline Rhetoric on China.† China U.S. Focus.   Accessed 4 April 2017.   http://www.chinausfocus.com/foreign-policy/dissecting-trumps-hardline-rhetoric-on-china [29] Office of the United States Trade Representative.   The People’s Republic of China.   Accessed 4 April 2017.   https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china [30] Gramer, Foreign Policy.