DEPARTMENT OF ECONOMICS
ECN220 : Evolution of the Global Economy
Questions for Midterm Test
The midterm test will last 1.5 hours and you will be asked to answer three short answer questions
(out of a choice of six) and one essay question (out of a choice of three). The questions will be
chosen from the following lists.
1 Briefly describe three reasons why many primary producing countries during the 1920s
experienced low and unstable export prices.
2 Several countries which depended on exporting manufactures experienced slow and
unstable growth during the 1920s. Indicate (with brief explanations) two of the reasons
3 Briefly describe two effects of protectionism on the international trading and financial
system of the 1920s.
4 Briefly describe how the German hyperinflation of 1922/23 was brought to an end.
5 How did German nationalists justify their claim that the hyperinflation of the 1920s was a
result of reparations payments? Is their argument plausible?
6 Explain why German reparation payments were essential to the survival of the
international financial system in the 1920s.
What does this mean and how did it give rise to instability in the international financial
9 In the context of exchange controls define:
(a) Compensation agreements.
(b) Clearing agreements.
10 What advantages do quotas have over tariffs from the point of view of the country
11 The pattern of trade between 1918 and 1939 differed from that which had existed in