International Wealth And Power Test 1

68 Questions | Total Attempts: 344

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International Wealth And Power Test 1

The first exam


Questions and Answers
  • 1. 
    International political Economy (IPE) primarily studies
    • A. 

      The political battle between nation states

    • B. 

      The economic battle between producers and consumers

    • C. 

      How the consequences of global economic exchange generate political winners and losers in national and international arenas

    • D. 

      How the consequences of global political change generate new technologies

    • E. 

      How the consequences of global economic change generate new political cultures.

  • 2. 
    The study of the global economy does NOT usually inclue the study of
    • A. 

      The international trade system

    • B. 

      The international monetary system

    • C. 

      Multinational corporation

    • D. 

      Economic development

    • E. 

      Scientific development

  • 3. 
    Five distinct elements to consider in understanding International Political Economy are evident in the steel tariffs between the United States and Japan.  Which of the followigng is NOT one of those five elements?
    • A. 

      The economic interests of business and workers

    • B. 

      How the US political process transforms these interests into trade policy.

    • C. 

      How the US policy affects business and workers in other countries

    • D. 

      How the International Monetary Fund is likely to respond to tariffs

    • E. 

      The role IGOs like WTO play in regulating policies governments adopt.

  • 4. 
    The ides that the purpose of economic activity was to enrich individuals, not to enhanve a state's power was most strongly held by the
    • A. 

      Liberalism school of international political economy

    • B. 

      Conservatism school of international political economy

    • C. 

      Mercantilist school of international political economy

    • D. 

      Marxist school of international political economy

    • E. 

      Realist school of international political economy

  • 5. 
    Oatley claims that political economic policies are determined by the interaction between 
    • A. 

      Material and ideological interests

    • B. 

      Societal interests and national political institutions

    • C. 

      Consumer interests and producer interests

    • D. 

      Trade interests and monetary interests

    • E. 

      Security interests and diplomatic interests

  • 6. 
    Explanatory Studies are primarily oriented toward explaining
    • A. 

      Who makes foreign economic policy choices in governments

    • B. 

      How governments make foreign economic policy choices

    • C. 

      When governments make foreign economic policy choices

    • D. 

      Where governments make foreign economic policy choices

    • E. 

      Why governments make foreign economic policy choices

  • 7. 
    Britain was the first to adopt a free-trade policy
    • A. 

      When it passed its "corn laws" in the 1840s

    • B. 

      When it opened its markets to imported grain

    • C. 

      When it forced the united states to eliminate most tariffs on trade

    • D. 

      When it negotiated the Cobden-Chevalier treaty with Germany

    • E. 

      When it adopted the gold standard

  • 8. 
    The post WWII global economy differed from the classical liberal systems of the 19th century in important ways.  Which of the following statements is NOT true about these differences?
    • A. 

      There were significant changes in public attitudes about the government's proper economic role.

    • B. 

      In the 19th century liberal system, governments eliminated trade barriers but made little effort to manage domestic economic activity

    • C. 

      The Great Depression encouraged governments to promote growth and limit unemployment

    • D. 

      The rules embodied in the Bretton Woods system provided some insulation between the domestic and international economies

    • E. 

      The rules embodied in the Bretton Woods system provided no insulation between the domestic and the international economies

  • 9. 
    Which two core principles stand at the base of the WTO?
    • A. 

      Political liberalism and nondiscrimination

    • B. 

      Market liberalism and preferential discrimination

    • C. 

      Market liberalism and nondiscrimination

    • D. 

      Market conservatism and dispute settlement

    • E. 

      Intergovernmental bargaining and dispute settlement

  • 10. 
    A public good is defined by which two characteristics?
    • A. 

      Excludability and non-rivalry

    • B. 

      Non-excludability and rivalry

    • C. 

      Undersupply and non-rivalry

    • D. 

      Oversupply and rivalry

    • E. 

      Non-excludability and non rivalry

  • 11. 
    Two important probably changes within the WTO are
    • A. 

      The decline of developing countries as a powerful bloc within the organization, and the emergences of NGOs as a powerful force outside the organization

    • B. 

      The emergence of developing countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization

    • C. 

      The emergence of advanced countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization

    • D. 

      The emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization

    • E. 

      The decline of advanced countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside of the organization.

  • 12. 
    According to Oatly, WTO rules have been criticized by NGOs as
    • A. 

      Too favorable towards consumer interests

    • B. 

      Too favorable towards producer interests

    • C. 

      Too biased against producer interests

    • D. 

      Too favorable towards environmental interests

    • E. 

      Too favorable towards labor unions.

  • 13. 
    The growth of the WTO membership and the emergence of of the G-20 as a powerful bloc within the organization
    • A. 

      Has lowered the stakes of trade negotiations

    • B. 

      Has made it easier to find packages acceptable to the full membership

    • C. 

      Has reversed the apparent tendency to place business interests before consumer interests

    • D. 

      Has made it more difficult to find packages acceptable to the full membership

    • E. 

      Has decreased market liberalism.

  • 14. 
    Which of the following statements is NOT true about the Doha Round of trade bargaining that began in November 2001?
    • A. 

      Governments agreed to negotiate additional tariff reductions

    • B. 

      Governments agreed to incorporate existing negotiations in services

    • C. 

      Governments agreed to pursue meaningful liberalization of trade and the environment

    • D. 

      Governments agreed to negotiate on competition and government procurement policy

  • 15. 
    The Most Favored Nation Clause in trade agreements refers to 
    • A. 

      Giving preferential treatment to the goods of some trading partners with whom a country has signed treaties.

    • B. 

      Allowing the goods of all countries to be traded freely without barriers to the flow of goods.

    • C. 

      Giving preferential treatment to the imports of goods produced in developing countries

    • D. 

      Giving the same preferences to the imports of all goods produced by trade treaty partners

    • E. 

      Allowing the use of primary commodities agreements to guarantee ceiling and basement prices.

  • 16. 
    Which of the following best describes how power was distributed in the international system immediately prior to the outbreak of WWI?
    • A. 

      Balance of Power

    • B. 

      Tight Bipolar

    • C. 

      Multipolar

    • D. 

      Hegemonic

    • E. 

      Bipolar

  • 17. 
    The WTOs  dispute settlement mechanism is necessary
    • A. 

      Because this ensure that individual compliance with established rules is guaranteed

    • B. 

      In order to avoid punishment in the event of compliance

    • C. 

      So that governments can disregard WTO rules with impunity

    • D. 

      In order to authorize punishment in the event of noncompliance

    • E. 

      In order to avoid punishment by providing an independent quasi-judicial tribunal

  • 18. 
    The concept of production possibility frontiers (PPF) means that
    • A. 

      The factors of production are limited by a countries geographical frontiers

    • B. 

      Any decision to use factors of production to produce one good necessarily means that these factors are not available to produce other goods

    • C. 

      Any decision to use factors of production to produce one good doesn't necessarily mean that these factors are not available to produce other goods

    • D. 

      The factors of production are unlimited by a country's geographical frontiers

    • E. 

      Countries are endowed with factors of production in infinite amounts.

  • 19. 
    Opportunity cost refers to
    • A. 

      The cost of foregone consumption

    • B. 

      Consumer utility preferences

    • C. 

      Comparative advantage

    • D. 

      The efficiency of choices made about the use of abundant resources

    • E. 

      The cost of foregone production

  • 20. 
    Which of the following is NOT a factor that affects consumer behavior
    • A. 

      Marginal rate of substitution

    • B. 

      Income level

    • C. 

      Diminishing marginal utility

    • D. 

      Consumer indifference curves

    • E. 

      Trade

  • 21. 
    The ideal trade bargaining outcome for the group of 20 countries in the Doha Round
    • A. 

      Combines high barriers to their agricultural exports and high barriers to their manufactured goods imports

    • B. 

      Combines low barriers to their agricultural exports and low barriers to their manufactured goods imports

    • C. 

      Combines low barriers to their agricultural exports and high barriers to their manufactured goods imports

    • D. 

      Combines high barriers to their agricultural exports and low barriers to their manufactured goods imports

    • E. 

      Combines high barriers to their agricultural imports and low barriers to their manufactured goods exports

  • 22. 
    Negotiating the best deal possible requires
    • A. 

      Governments to trust each other to reveal only information they wish to reveal

    • B. 

      Impatient governments to accept bad deals

    • C. 

      Patient governments to accept bad deals

    • D. 

      Governments to force each other to reveal information they do not wish to reveal

    • E. 

      Governments to reveal everything at the beginning of negotiations.

  • 23. 
    If governments are equally patient 
    • A. 

      The no deal will ever be reached

    • B. 

      One government may gain bargaining power if it has an attractive outside option

    • C. 

      One government may lose bargaining power if it has an attractive outside option

    • D. 

      One government may gain bargaining power if it doesn't have an attractive outside option

    • E. 

      They will both lose bargaining power.

  • 24. 
    The enforcement problem of trade agreements refers to the fact that
    • A. 

      Governments can be certain that other governments will comply with the trade agreements that they conclude

    • B. 

      Governments cannot be certain that other governments will not comply with the trade agreements they conclude

    • C. 

      Governments can be certain that other governments will not comply with the trade agreements they conclude

    • D. 

      Governments cannot be certain that other governments will not comply with the trade agreements that they conclude

    • E. 

      Governments are reluctant to enter into trade agreements that are mutually beneficial

  • 25. 
    The Hecksher-Ohlin trade model argues that
    • A. 

      Developed countries have the same basic factor endowments

    • B. 

      Developed countries have the same comparative advantages

    • C. 

      Developed countries gave a lot of capital but little labor

    • D. 

      Comparative advantage arises from differences in factor endowments

    • E. 

      Comparative advantage arises from similarities in factor endowments

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