A.2 Sectoral Context
Over the past decade, food and agriculture has been one of the main sectors of Armenia's economy and
the main source of employment in rural areas. During 2004-2008, the total sector represented just over
25% of the national economy wi
Development Planning and
Policymaking: the State, and
A state planning ideology arose in LDCs as a reaction to nationalist perceptions of slow
economic growth under colonial capitalism.
Development planning is the government's coordinated pol
10. The infant industry arguments refers to a tariff designed to
a. help foreign industries establish themselves in the local market.
b. protect young manufacturing products from foreign competition.
c. help consumers enjoy a variety of products in the lo
4. The market efficiently allocates scarce resources among alternative ends such that
I consumers receive goods for which they are willing to pay.
II production resources hire out to maximize income.
III the market determines available labor and capital.
c. bound by soft budget.
d. recurrent expenditures.
11. Polish economist Oskar Lange's model of decentralized _ combined the advantages
of market allocation with more uniform income distribution by dividing the returns from social
ownership of nonhuman, p
b. urban credit cooperatives.
c. monobank system.
d. housing savings banks.
12. The industrial concentration ratio is the proportion of an industrys output
a. produced by the three largest firms in the industry.
b. produced in cement, machine tools and st
8. A medium-term plan can be a(n) _, revised at the end of each year.
a. instrument variable.
b. seasonal expenditure.
c. rolling plan.
d. perspective plan.
9. Most mixed or capitalist developing countries ar
Which of the following is true?
a. S - I = X - M.
b. S + I = X + M.
c. S = I - (X+M).
d. S-I = X /M.
5. Internal balance refers to
a. full employment and price stability.
b. exports minus imports.
c. monetary policy offsetting fiscal policy.
d. exports eq
informal work opportunities for the bulk of the recently unemployed. As these new landowners-nowfarmers had been working in huge state-owned companies and farms, they lacked practical farming skills
and experience. This, combined with fragmented productio
Stabilization, Adjustment, Reform, and
Many third-world countries of Africa, Asia, and Latin America can learn from Russia's,
Poland's, and China's efforts at liberalization and adjustment.
Russia's state socialism, more developed and deep
18. A critic of shock therapy to transition economies, Vladamir Popov, contends that shock
therapists put a heavy emphasis on
a. introducing the reform package at once to ensure that it became too late and costly to
reverse the reforms.
b. agricultural re
b. Providing adequate infrastructure for public and private agencies
c. Creating markets, including commodity markets, security exchanges, banks, credit
facilities, and insurance companies.
d. Increasing market monopolies and oligopolie
A.1 General context
Armenia is a sovereign state landlocked in the South Caucasus region, bordered by Turkey to the west,
Georgia to the north, Azerbaijan to the east, and Iran in the south. Armenia is a mountainous country
with an average elev
Entry Level Stewardship aims to encourage a large number of farmers to improve
the environment beyond what they are already doing. It supports hedgerow
management and stone wall maintenance for instance. The scheme has been used
with enthusiasm by farmers
TABLE 1 Comparative Costs of Textiles and Steel in India and Japan
Textiles (price per meter)
Steel (price per ton)
4. The ratio of the price of steel to that of textiles is _in Japan and _in India.
a. 4:3; 4:1.
d. increase government spending.
8. Structural economists from the United Nations Economic Commission for Latin America
a. contractionary monetary and fiscal policies.
b. currency devaluation.
c. long-run institutional and structural eco
effective rate of protection
export purchasing power
factor proportions theory
free trade area
General Agreements on Trade in Services (GATS)
generalized system of tariff preferences (GSP)
d. the proportion of income spent on giffen goods rises.
14. If export prices increase 5 percent and import prices 20 percent, the commodity terms of
15. The Organization of Petroleum Exporting Countries (OPEC) is
III achieving market-clearing prices.
IV restraining public-sector employment and wage rates.
a. I and II only.
b. III and IV only.
c. I, II, III and IV.
d. None of the above.
2. Countries with chronic balance of payments deficits eventually need to borro
Is UK farming sustainable now?
The government doesnt think so. In its Strategy for Sustainable Farming and Food
- Facing the Future i it states that farming is underperforming in all three arms of
Profitability is low farmers
Over recent years the quantity of pesticides used in agriculture has remained
largely unchanged but many of the more environmentally damaging products are no
longer used and the industry has developed a programme of voluntary measures to
encourage best pr
a. comparative advantage theory.
b. laissez-faire theorem.
c. HeckscherOhlin theorem.
d. product cycle model.
8. The product cycle model indicates that while a product requires _labor in the
beginning, later as markets grow and techniques become common kn
those of locals. They increasingly affect the shape of the countryside and farmers
have less and less influence on it.
Low profits and a poor public image have affected the self-esteem and quality of life
of all those involved in farming. Because there ar
B.2 Institutional Background
The European Union has been engaged on the agriculture sector in Armenia since the 1990s. In 2010,
the EU Delegation conducted a Review of the EU-assisted Development Aid in the Agriculture Sector in
Armenia over five years an
Between 2004 and 2008, the export of food commodities increased 4.7 times over 2000 representing an
increase from 10.0% to 14.4% of total exports. The world financial crisis, however, soon had an adverse
effect on foreign trade to include agriculture. Dur
c. SOEs in South Korea and Sweden generally achieve inferior economic results to those in
d. Financial autonomy is a major factor contributing to SOE managerial effectiveness.
16. Privatization refers to a range of policies including
a. most resources lack freedom to move to their highest value uses.
b. resources are free to move to their lowest cost uses.
c. resources owned by private entities moves to efficient use but not those owned publicly.
d. resources are privately owned by ca
UK farmers are struggling to adapt to their markets and to become
economically sustainable but there will probably never be a state where
sustainability is achieved and the fall in their numbers stabilises.
have always worked to maintain and