Question 1

Distributional consequences about resource allocation decisions

Accepted Answer

A

Question 2

Britain was the first to adopt a free-trade policy

Accepted Answer

Britain adopted a free-trade policy when it opened its markets to imported grain, abolishing the Corn Laws in 1846.

Question 3

Interests are the goals or policy objectives that the central actors in the political and economic system want to use foreign economic policy to achieve.Which scenario appropriately captures "interests"?

Accepted Answer

Steel workers support tariffs because they protect domestic jobs by making imported steel more expensive, thus reducing competition.

Question 4

Economic development strategies in the post WWII era in developing countries

Accepted Answer

Economic development strategies in the post WWII era have been largely successful in the newly industrializing countries of East Asia, such as Japan, South Korea, Taiwan, and Singapore. These countries implemented policies that focused on export-oriented industrialization, government intervention in the economy, and investing in human capital through education and training. As a result, they were able to achieve rapid economic growth and development. However, other developing countries in different regions have had mixed success with these strategies.

Question 5

The international monetary system primarily facilitates

Accepted Answer

The international monetary system facilitates the exchange of national currencies between countries. It provides a framework for international trade and investment by establishing exchange rates between currencies and providing mechanisms for converting one currency into another.

Question 6

The idea that the purpose of economic activity was to enrich individuals,not to enhance a state's power was most strongly held by the

Accepted Answer

The idea that the purpose of economic activity was to enrich individuals, not to enhance a state's power is a core principle of liberalism in international political economy. Liberal theorists believe in free trade and the benefits of market efficiency, and emphasize the importance of individual freedom and private property rights. They argue that states should prioritize the prosperity of their citizens rather than engaging in economic competition with other states.

Question 7

The mercantilist school of international political economy

Accepted Answer

The mercantilist school of international political economy believes that governments should encourage exports whenever possible in order to increase a country's wealth and power. This school emerged in Europe during the 16th to 18th centuries and challenged the dominant economic ideology of liberalism.

Question 8

The Marxist school of international political economy primarily does NOT believe that

Accepted Answer

The Marxist school of international political economy believes that capitalism is associated with a falling rate of profit, not a growing rate of profit. Therefore, option C is incorrect.

Question 9

Between 1815 and 1914 trade grew more rapidly than in the previous 300 years by increasing by approximately

Accepted Answer

The answer of Between 1815 and 1914 trade grew more...

Question 10

Today the trade of goods and services across national borders each year is worth

Accepted Answer

The answer of Today the trade of goods and services...

Question 11

The decision by the Bush administration to raise tariffs on imported steel in the spring of 2002

Accepted Answer

The decision to raise tariffs on imported steel in 2002 was prompted by lobbying efforts from both owners and workers in American steel firms. The Bush administration believed that this move would protect American steel and help save jobs in the industry. However, the decision was controversial and faced backlash from other industries, such as automobile manufacturers, as well as foreign steel producers who saw a decline in exports to the US.

Question 12

The three different schools generate three very different images of the central dynamic of IPE.Which of the following is true?

Accepted Answer

The answer of The three different schools generate three very...

Question 13

The study of the global economy does NOT usually include the study of

Accepted Answer

The study of the global economy focuses on economic factors such as international trade, monetary systems, multinational corporations, and economic development. Scientific development, while important, is not typically studied in the context of the global economy.

Question 14

Political institutions establish the rules governing the political process.As such,

Accepted Answer

Democratic institutions, such as free and fair elections, encourage and enable broad participation in decision-making by allowing all eligible citizens to vote and have a say in the outcome.

Question 15

The distributive consequences of global economic exchange

Accepted Answer

Global economic exchange generates political competition in both national and international arenas, as countries compete for access to markets, resources, and capital. However, the distributive consequences are mixed and unequal, with some groups benefiting more than others. Developing countries may experience lower income levels, while developed countries may see income gains for certain segments of their populations. Therefore, options A and E are incorrect. Option B is incorrect because economic exchange does not necessarily lead to the elimination of political competition at the national level. Option C is incorrect because economic exchange may actually intensify political competition at the international level as countries seek to protect their interests and ensure fairness in the global economy.

Question 16

Explanatory studies are primarily oriented toward explaining

Accepted Answer

Explanatory studies are designed to explain the reasons or causes behind a phenomenon or decision. In the case of foreign economic policy choices of governments, explanatory studies would primarily be focused on why governments make those choices.

Question 17

Multinational corporations account for

Accepted Answer

According to data from the United Nations Conference on Trade and Development (UNCTAD), multinational corporations account for approximately 1/4 of the world's economic production and 1/3 of the world's trade. Therefore, the best choice is B.

Question 18

Welfare consequences about resource allocation decisions

Accepted Answer

Resource allocation decisions impact societal well-being by determining how resources are distributed and utilized, affecting overall economic efficiency and welfare.

Question 19

In the 19^thcentury,cost and time in long distance trade was made dramatically more profitable by the invention of

Accepted Answer

The invention of steam engines allowed for faster and more efficient transportation of goods over long distances, reducing both the cost and time involved in trade. The telegraph and airplanes were not invented until later in the 19th century, and while automobiles did have an impact on transportation, they were not commonly used for long distance trade in the same way as steam engines and ocean-going ships.

Question 20

International Political Economy (IPE)primarily studies

Accepted Answer

International Political Economy (IPE) primarily studies how the consequences of global economic exchange generate political winners and losers in national and international arenas. It explores the interplay between international economic and political systems and how they affect each other. IPE looks at issues like trade, foreign investment, economic development, globalization, and their political implications for countries and actors involved.

Quiz 1: International Political Economy