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Question 1

Britain's emergence as an industrial nation saw which of the following traditions of economic policy established?

a) The idea of a mercantilist economic policy

b) The idea of a developmental economic policy

c) The idea of a laissez-faire economic policy

d) The idea of an autarkic economic policy

Question 2

The notion of a 'middle way' between socialism and laissez faire capitalism is particularly associated with which one of the following individuals?

a) Edward Heath

b) Harold Macmillan

c) Winston Churchill

d) Milton Friedman

Question 3

The Second World War was significant for the trajectory of British economic policy in which of the following ways?

a) It established a consensus for the restoration of classical economics

b) It encouraged a reappraisal of the relationship of the City of London to the rest of the economy

c) It discredited laissez-faire economic policies

d) It encouraged Britain to reduce its costly defence commitments

Question 4

The first decade after the Second World War is best characterized as one in which...

a) ...in the face of intense competition from the other former combatants in World War II the British economy was soon confronted by the problem of mass unemployment.

b) ...Britain quickly overtook the US economy using policies which extended state planning, control and ownership over the economy.

c) ...Britain made an economic recovery which disguised underlying economic problems.

d) ...initial experiments in applying Keynesian economic ideas were abandoned as 'stagflation' took hold.

Question 5

Which post-war government is associated with the 'three day week'?

a) The governments led by Clement Attlee between 1945 and 1951

b) The governments led by Harold Wilson between 1964 and 1970

c) The government led by Edward Heath between 1970 and 1974

d) The governments led by Harold Wilson and James Callaghan between 1974 and 1979

Question 6

To what does 'stop-go' refer?

a) The tendency of post-war British governments to manufacture conditions of unsustainable economic growth prior to general elections

b) The tendency of post-war British governments to switch economic policies in an environment of adversarial politics

c) The tendency of post-war British governments to switch between expansionary and deflationary policies

d) The tendency of post-war British governments to rely on episodic devaluations of the pound to temporarily resolve economic difficulties

Question 7

The economic policies pursued by Edward Heath's government which held office between 1970 and 1974 are best characterized in which of the following ways?

a) Faced with the OPEC oil crisis, the Heath government retreated from its laissez faire policies and undertook a managed devaluation of sterling

b) With increasing competition in the international economy, the Heath government sought to direct the City of London to invest in the domestic economy

c) An initial phase of proto-Thatcherite economic policies was abandoned and replaced by heavily interventionist policies

d) Faced with a sterling crisis the government was forced to request a record loan from the International Monetary Fund

Question 8

The National Enterprise Board was a creation of which of the following governments?

a) The governments led by Harold Macmillan between 1956 and 1963

b) The government led by Edward Heath between 1970 and 1974

c) The governments led by Harold Wilson and James Callaghan between 1974 and 1979

d) The governments led by Margaret Thatcher between 1979 and 1990

Question 9

Which of the following was a key idea implemented by the Conservative governments led by Margaret Thatcher?

a) Monetarism

b) Neo-classical endogenous growth theory

c) The social market economy

d) Neo-corporatism

Question 10

Which one of the following is NOT one of the government's five tests for joining the single European currency?

a) Membership of the single currency should promote higher growth, stability and stable employment

b) Membership of the single currency should only occur when Britain's economic cycle coincides with that of the Euro area

c) Membership of the single currency should not damage the competitiveness of Britain's financial services industry

d) Membership of the single currency should only occur if there is public approval in a referendum

Oxford University Press, Online Resource Centre, Chapter 26.

Chapter 26

Instructions

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10