International Wealth And Power Test 1
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East Asian governments were more successful in their development strategies than those in Latin America and Africa because
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They shifted to export-oriented substitution once they had exhausted the gains from easy ISI
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They shifted to export-oriented substitution without resorting to easy ISI
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They shifted to export-oriented substitution once they had exhausted the gains from commodity exports in agriculture
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They shifted to secondary ISI once they had exhausted the gains from easy ISI
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They were not interested in rent-seeking strategies
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Explore the dynamics of International Political Economy (IPE) with our quiz. Understand how global economic exchanges impact politics, the non-inclusion of scientific development in global economy studies, and the factors influencing political economic policies. Perfect for students and professionals in political science and economics.
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- 2.
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
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Liberalism school of international political economy
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Conservatism school of international political economy
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Mercantilist school of international political economy
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Marxist school of international political economy
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Realist school of international political economy
Correct Answer
A. Liberalism school of international political economyExplanation
The correct answer is liberalism school of international political economy. Liberalism emphasizes individual freedom and believes that economic activity should primarily benefit individuals rather than the state. This perspective advocates for free markets, limited government intervention, and the protection of individual rights and property. It promotes the idea that economic activity should enhance the well-being and prosperity of individuals rather than focusing on the accumulation of state power.Rate this question:
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- 3.
Britain entered into alliances during the 19th century to
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Maintain stability in the prevailing distribution of world power
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Associate itself with nations that shared Britain's political views
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Stop the rising power of the United States in world affairs
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Maintain its domestic agricultural self-sufficiency
Correct Answer
A. Maintain stability in the prevailing distribution of world powerExplanation
During the 19th century, Britain entered into alliances to maintain stability in the prevailing distribution of world power. This suggests that Britain recognized the importance of having alliances with other nations in order to maintain a balance of power and prevent any one nation from becoming too dominant. By forming alliances, Britain could ensure that no single nation would pose a threat to the existing power dynamics, thus promoting stability in the global arena.Rate this question:
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- 4.
The model that argues that trade politics are driven by competition between two industries is called
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The sector model
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The distributional model
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The factor model
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The pluralist model
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The competition model
Correct Answer
A. The sector modelExplanation
The sector model argues that trade politics are driven by competition between two industries. This model suggests that trade policies are influenced by the interests and demands of specific sectors or industries, rather than being driven by broader economic or political factors. The sector model emphasizes the importance of understanding the specific dynamics and interests of individual industries in shaping trade policies.Rate this question:
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- 5.
"Easy" import substituting industrialization (ISI) was based on the strategy of
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Substituting previously imported simple consumer goods with newly domestically produced ones
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Substituting previously exported simple consumer goods with newly domestically produced ones
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Substituting previously imported advanced consumer goods with newly domestically produced simple ones
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Substituting previously exported advanced consumer goods with newly domestically produced advanced agricultural ones.
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Substituting previously imported agricultural goods with newly domestically produced manufacturing ones.
Correct Answer
A. Substituting previously imported simple consumer goods with newly domestically produced onesExplanation
Easy import substituting industrialization (ISI) was a strategy that aimed to reduce a country's dependence on imported goods by producing those goods domestically. This strategy focused on substituting previously imported simple consumer goods with newly domestically produced ones. By doing so, the country could stimulate its domestic industries, create employment opportunities, and reduce its trade deficit. This approach allowed the country to develop its manufacturing sector and become self-sufficient in producing basic consumer goods.Rate this question:
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- 6.
The Prisoners Delimma exercise suggests that
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Even when all countries would benefit from trade liberalization, political dynamics trap governments in a protectionist world
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Even when all countries would benefit from protectionism, political dynamics trap governments in a liberalized world
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Even when no countries would benefit from trade liberalization, political dynamics trap governments in a protectionist world
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Even when no countries would benefit from protectionism, political dynamics trap governments in a liberalized world.
Correct Answer
A. Even when all countries would benefit from trade liberalization, political dynamics trap governments in a protectionist worldExplanation
The correct answer suggests that even though all countries would benefit from trade liberalization, political dynamics prevent governments from implementing it and instead trap them in a protectionist world. This implies that political factors, such as pressure from domestic industries or public opinion, outweigh the potential benefits of trade liberalization for governments.Rate this question:
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- 7.
International political Economy (IPE) primarily studies
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The political battle between nation states
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The economic battle between producers and consumers
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How the consequences of global economic exchange generate political winners and losers in national and international arenas
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How the consequences of global political change generate new technologies
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How the consequences of global economic change generate new political cultures.
Correct Answer
A. How the consequences of global economic exchange generate political winners and losers in national and international arenasExplanation
The correct answer is how the consequences of global economic exchange generate political winners and losers in national and international arenas. This answer accurately reflects the main focus of International Political Economy (IPE), which is to study how the outcomes of global economic interactions impact political dynamics and create winners and losers at both national and international levels. By analyzing the consequences of economic exchange, IPE seeks to understand the power dynamics and distribution of benefits and costs among different actors in the political arena.Rate this question:
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- 8.
Which of the following is NOT one of the three ideologies usually associated with political economy?
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Economic liberalism
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Nationalism
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Marxism
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Mercantilism/realism
Correct Answer
A. NationalismExplanation
Nationalism is not one of the three ideologies usually associated with political economy. The three ideologies typically associated with political economy are economic liberalism, Marxism, and mercantilism/realism. Nationalism, on the other hand, is a political ideology that focuses on the interests and identity of a particular nation, rather than economic principles. While nationalism can certainly influence economic policies, it is not considered one of the core ideologies in the field of political economy.Rate this question:
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- 9.
The concept of production possibility frontiers (PPF) means that
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The factors of production are limited by a countries geographical frontiers
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Any decision to use factors of production to produce one good necessarily means that these factors are not available to produce other goods
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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
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The factors of production are unlimited by a country's geographical frontiers
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Countries are endowed with factors of production in infinite amounts.
Correct Answer
A. Any decision to use factors of production to produce one good necessarily means that these factors are not available to produce other goodsExplanation
The correct answer is "any decision to use factors of production to produce one good necessarily means that these factors are not available to produce other goods." This statement aligns with the concept of production possibility frontiers (PPF), which illustrates the trade-offs that occur when allocating limited resources to produce different goods. When resources are used to produce one good, they become unavailable for producing other goods, leading to an opportunity cost. This concept highlights the need for efficient resource allocation and the trade-offs involved in production decisions.Rate this question:
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- 10.
Pareto Optimality is when
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No single actor can be made better off without at the same time making another actor worse off
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At least one actor can be made better off without at the same time making another actor worse off
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Neither player has an incentive to change strategies unilaterally
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Both players have the advantage to change strategies unilaterally
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One player has the advantage to change strategies unilaterally but the other player doesn't.
Correct Answer
A. No single actor can be made better off without at the same time making another actor worse offExplanation
Pareto Optimality refers to a situation where no single actor can be made better off without making another actor worse off. This means that any change or improvement that benefits one individual or entity would necessarily result in a negative impact on someone else. In other words, Pareto Optimality implies that the allocation or distribution of resources is already at its most efficient state, and any attempt to improve the situation for one party would come at the expense of another party.Rate this question:
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- 11.
Economic crises struck many developing countries outside East Asia in the early 1980s in large part because of decisions to
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Use foreign loans to finance large infrastructure projects or domestic consumption
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Use foreign loans to subsidize export oriented development
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Use domestic savings to finance large infrastructure projects or domestic consumption
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Use government funds to fight drugs and terrorism
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Allow corrupt governments to put their money into foreign banks
Correct Answer
A. Use foreign loans to finance large infrastructure projects or domestic consumptionExplanation
Many developing countries outside East Asia experienced economic crises in the early 1980s due to their decisions to use foreign loans to finance large infrastructure projects or domestic consumption. This means that these countries borrowed money from foreign sources to fund projects such as building roads, bridges, and other infrastructure, or to support domestic spending on goods and services. However, these decisions resulted in unsustainable levels of debt and led to financial instability and economic downturns in these countries.Rate this question:
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- 12.
ISI policies in the long run constrained the ability of governments to implement reforms because
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They created too many veto players to block change
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They raised consumer expectations to unreasonable levels
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They raised producer profit expectations to unreasonable levels
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State owned enterprises became too corrupt to manage
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Government subsidies were too popular with urban elites
Correct Answer
A. They created too many veto players to block changeExplanation
The correct answer is that ISI policies in the long run constrained the ability of governments to implement reforms because they created too many veto players to block change. This means that the policies put in place by the government allowed for the involvement of numerous individuals or groups who had the power to prevent any significant changes or reforms from taking place. As a result, the government's ability to implement necessary reforms was hindered, leading to a lack of progress and development in the long term.Rate this question:
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- 13.
Which two core principles stand at the base of the WTO?
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Political liberalism and nondiscrimination
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Market liberalism and preferential discrimination
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Market liberalism and nondiscrimination
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Market conservatism and dispute settlement
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Intergovernmental bargaining and dispute settlement
Correct Answer
A. Market liberalism and nondiscriminationExplanation
The two core principles that stand at the base of the WTO are market liberalism and nondiscrimination. Market liberalism refers to the belief in free trade and the reduction of barriers to international commerce. Nondiscrimination means that WTO members should not discriminate between their trading partners and should treat all members equally. These principles form the foundation of the WTO's mission to promote open and fair trade among its member countries.Rate this question:
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- 14.
Politics is the process of authoritatively allocating resources for the pursuit of:
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Income
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Values
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Freedom
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Security
Correct Answer
A. ValuesExplanation
Politics is the process of making decisions and allocating resources in a society. It involves determining how resources, such as money and power, are distributed and used. While income, freedom, and security are all important aspects of politics, the pursuit of values is a fundamental goal. Values shape the policies and actions taken by political leaders and institutions. They guide the allocation of resources and the decisions made to promote certain ideals and principles within a society. Therefore, the pursuit of values is an essential component of the political process.Rate this question:
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- 15.
The study of the global economy does NOT usually inclue the study of
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The international trade system
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The international monetary system
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Multinational corporation
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Economic development
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Scientific development
Correct Answer
A. Scientific developmentExplanation
The study of the global economy typically focuses on factors such as the international trade system, the international monetary system, multinational corporations, and economic development. Scientific development, on the other hand, is not directly related to the functioning and dynamics of the global economy. While scientific advancements can have indirect impacts on economic growth and development, they are not typically included in the study of the global economy itself.Rate this question:
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- 16.
A society centered approach to trade politics argues that
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A government's trade policy objectives are not shaped by politicians' responses to interest group demands
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Government's trade policy objectives are shaped by politicians' responses to interest group demands
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A government's trade policy objectives are shaped by rational choices among strong economic models
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Trade largely has no distributional consequences
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Distributional consequences from trade only creates winners
Correct Answer
A. Government's trade policy objectives are shaped by politicians' responses to interest group demandsExplanation
The correct answer suggests that government's trade policy objectives are influenced by politicians' responses to interest group demands. This means that politicians consider the demands and preferences of interest groups when formulating trade policies. This approach implies that the government's decisions are influenced by the pressure and influence exerted by various interest groups, which can shape the direction and priorities of trade policy.Rate this question:
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- 17.
The bipolar cold war between the United States and the Soviet Union shifted attention away from Europe following what event?
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The formation of the General Agreement to Borrow in 1961
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The Suez Crisis
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The invasion if Czechoslovakia in 1968
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The Cuba missile crisis
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The Berlin Blockade
Correct Answer
A. The Suez CrisisExplanation
The correct answer is the Suez Crisis. The Suez Crisis occurred in 1956 when Egypt nationalized the Suez Canal, leading to a military intervention by Israel, France, and the United Kingdom. This event diverted attention away from Europe as the focus shifted to the Middle East. The crisis highlighted the growing influence of the United States and the Soviet Union in global affairs, and it marked a turning point in the Cold War dynamics.Rate this question:
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- 18.
According to Oatly, WTO rules have been criticized by NGOs as
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Too favorable towards consumer interests
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Too favorable towards producer interests
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Too biased against producer interests
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Too favorable towards environmental interests
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Too favorable towards labor unions.
Correct Answer
A. Too favorable towards producer interestsExplanation
The correct answer is "too favorable towards producer interests". This means that according to Oatly, the World Trade Organization (WTO) rules have been criticized by NGOs for being biased in favor of producers. This suggests that the rules may prioritize the interests of producers over other stakeholders, such as consumers, labor unions, and environmental concerns.Rate this question:
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- 19.
European global commercial aircraft firms were able to catch up to American firms by the late 1990s because
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They used similar industrial policy tactics similar to those used by American governments in a previous era.
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Of different sector advantages obtained by European domestic interest groups
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Tariffs and quotas kept American firms out of the European market
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Of late-mover advantages to utilize the most recent technological innovations
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The US was unsuccessful of obtaining WTO sanctions against their illegal actions
Correct Answer
A. They used similar industrial policy tactics similar to those used by American governments in a previous era.Explanation
European global commercial aircraft firms were able to catch up to American firms by the late 1990s because they used similar industrial policy tactics similar to those used by American governments in a previous era. This suggests that European firms adopted successful strategies that had been previously used by American governments, allowing them to compete effectively in the global aircraft market. By implementing similar industrial policies, European firms were able to overcome any disadvantages they may have had and achieve success in the industry.Rate this question:
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- 20.
Classical liberals believe the goal of capitalism is to:
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Maximize the general welfare
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Maximize the interests of owners of production
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Maximize the interests of the state
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Ensure an even distribution of wealth between consumers and producers
Correct Answer
A. Maximize the general welfareExplanation
Classical liberals believe that the goal of capitalism is to maximize the general welfare. This means that they believe capitalism should aim to benefit society as a whole, rather than just a specific group or entity. By maximizing the general welfare, classical liberals argue that capitalism can create the greatest overall prosperity and well-being for individuals. This perspective emphasizes the importance of free markets, individual liberty, and limited government intervention in economic affairs.Rate this question:
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- 21.
If governments are equally patient
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The no deal will ever be reached
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One government may gain bargaining power if it has an attractive outside option
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One government may lose bargaining power if it has an attractive outside option
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One government may gain bargaining power if it doesn't have an attractive outside option
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They will both lose bargaining power.
Correct Answer
A. One government may gain bargaining power if it has an attractive outside optionExplanation
If governments are equally patient, it means that they are willing to wait for a long time to reach a deal. In this scenario, if one government has an attractive outside option, it means that they have an alternative option that is more favorable than the current negotiation. This gives them more bargaining power because they can walk away from the negotiation and pursue the better alternative. On the other hand, if a government doesn't have an attractive outside option, they are more dependent on reaching a deal and therefore may lose bargaining power. So, the statement suggests that having an attractive outside option can give a government an advantage in negotiations.Rate this question:
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- 22.
Britain was the first to adopt a free-trade policy
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When it passed its "corn laws" in the 1840s
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When it opened its markets to imported grain
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When it forced the united states to eliminate most tariffs on trade
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When it negotiated the Cobden-Chevalier treaty with Germany
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When it adopted the gold standard
Correct Answer
A. When it opened its markets to imported grainExplanation
The correct answer is "when it opened its markets to imported grain." This answer indicates that Britain was the first to adopt a free-trade policy by allowing the importation of grain from other countries. This decision to open its markets to imported grain was a significant step towards embracing free trade and reducing trade barriers. It signaled a shift towards a more open and competitive market, setting the stage for further free-trade policies in the future.Rate this question:
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- 23.
The state-centered approach to trade politics argues that national policy makers intervene in the economy in pursuit of
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National objectives that are dependent on domestic groups' self interested concerns
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National objectives that are independent of domestic groups' self interested concerns
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International objectives that are dependent on foreign groups' self interested concerns
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International objectives that are independent of foreign groups' self interested concerns
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National objectives that are dependent on foreign groups' self interested concerns.
Correct Answer
A. National objectives that are independent of domestic groups' self interested concernsExplanation
The correct answer suggests that the state-centered approach to trade politics argues that national policy makers intervene in the economy in pursuit of national objectives that are independent of domestic groups' self-interested concerns. This means that national policy makers prioritize the overall national interest rather than catering to the specific interests of domestic groups.Rate this question:
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- 24.
Which of the following best describes how power was distributed in the international system immediately prior to the outbreak of WWI?
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Balance of Power
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Tight Bipolar
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Multipolar
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Hegemonic
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Bipolar
Correct Answer
A. Tight BipolarExplanation
The correct answer is "Tight Bipolar." This means that power was concentrated between two major powers or alliances, creating a bipolar system. This can be seen in the pre-WWI period with the rivalry between the Triple Entente (comprised of Britain, France, and Russia) and the Central Powers (Germany, Austria-Hungary, and Italy initially). The balance of power was not evenly distributed among multiple states, but rather focused on these two opposing blocs, leading to heightened tensions and ultimately the outbreak of WWI.Rate this question:
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- 25.
The definition of Economics in this course is
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The process of producing, distributing, and consuming goods and services
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The process of producing and consuming goods and services for the pursuit of power
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The process of producing, distributing, and consuming goods and services for the pursuit of values
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The process of pursuing wealth through the production of goods and services
Correct Answer
A. The process of producing, distributing, and consuming goods and services for the pursuit of values -
- 26.
The model that argues that trade politics are driven by competition between labor and capital is called
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The sector model
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The liberal model
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The conservative model
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The factor model
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The distributional model
Correct Answer
A. The factor modelExplanation
The factor model argues that trade politics are driven by competition between labor and capital. This model focuses on the role of factors of production, such as labor and capital, in shaping trade policies. It suggests that different factors have different interests and preferences when it comes to trade, and these interests and preferences drive the political dynamics of trade negotiations and agreements.Rate this question:
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- 27.
Power is defined in this course as
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The possession of wealth
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Control over political institutions
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The capacity to control outcomes
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The capacity to influence others' opinions
Correct Answer
A. The capacity to control outcomesExplanation
Power is defined in this course as the capacity to control outcomes. This means that power is not solely based on the possession of wealth or control over political institutions, but rather on the ability to determine and shape the results or consequences of certain actions or decisions. Additionally, power is not limited to influencing others' opinions, but extends to the ability to actually control and manipulate the outcomes of various situations.Rate this question:
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- 28.
Oatley claims that political economic policies are determined by the interaction between
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Material and ideological interests
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Societal interests and national political institutions
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Consumer interests and producer interests
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Trade interests and monetary interests
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Security interests and diplomatic interests
Correct Answer
A. Societal interests and national political institutionsExplanation
According to Oatley, political economic policies are shaped by the interaction between societal interests and national political institutions. This means that the policies are influenced by the needs and desires of the society as well as the decisions and actions of the political institutions within a country. The societal interests can include the preferences and demands of the citizens, while the national political institutions refer to the government and other governing bodies that make and implement policies. This interaction between societal interests and political institutions helps determine the economic policies of a country.Rate this question:
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- 29.
World Bank structural adjustment loans were largely dependent on developing countries changing policies to
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Avoid the strategies at the core of the East Asian development model
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Privatize state-owned enterprises.
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Refinance foreign debt with higher interest rates.
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Raise taxes to reduce budget deficits
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Reduce dependence on oil exports
Correct Answer
A. Privatize state-owned enterprises.Explanation
Structural adjustment loans provided by the World Bank were conditional on developing countries implementing certain policy changes. One of these changes was the privatization of state-owned enterprises. This meant that the government-owned companies would be sold to private entities, allowing for competition and efficiency in the market. This policy was seen as a way to promote economic growth and development by reducing government intervention and encouraging private sector participation.Rate this question:
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- 30.
The enforcement problem of trade agreements refers to the fact that
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Governments can be certain that other governments will comply with the trade agreements that they conclude
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Governments cannot be certain that other governments will not comply with the trade agreements they conclude
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Governments can be certain that other governments will not comply with the trade agreements they conclude
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Governments cannot be certain that other governments will not comply with the trade agreements that they conclude
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Governments are reluctant to enter into trade agreements that are mutually beneficial
Correct Answer
A. Governments cannot be certain that other governments will not comply with the trade agreements they concludeExplanation
The enforcement problem of trade agreements refers to the uncertainty that governments face regarding the compliance of other governments with the trade agreements they have concluded. This means that governments cannot be certain that other governments will adhere to the terms and conditions of the trade agreements. This uncertainty can undermine the effectiveness of the agreements and lead to potential violations or non-compliance by the participating governments.Rate this question:
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- 31.
Which of the following is NOT one of the 8 values Lasswell claimed all humans pursue
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Freedom
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Enlightenment
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Well-being
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Power
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Skill
Correct Answer
A. FreedomExplanation
Lasswell claimed that all humans pursue eight values, and the question asks for the value that is NOT one of them. Among the options provided, freedom is the correct answer. The other options, enlightenment, well-being, power, and skill, are all values that Lasswell claimed humans pursue.Rate this question:
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- 32.
A public good is defined by which two characteristics?
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Excludability and non-rivalry
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Non-excludability and rivalry
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Undersupply and non-rivalry
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Oversupply and rivalry
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Non-excludability and non rivalry
Correct Answer
A. Non-excludability and non rivalryExplanation
A public good is characterized by non-excludability, meaning that it is difficult or impossible to exclude individuals from benefiting from the good once it is provided. Additionally, a public good is characterized by non-rivalry, meaning that one person's consumption of the good does not diminish its availability for others. Therefore, the correct answer is non-excludability and non-rivalry.Rate this question:
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- 33.
___________ is often depicted as an example of a weak state that has been unable and unsuccessful in using industrial policy to promote economic development
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Great Britain
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France
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United States
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Japan
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China
Correct Answer
A. United StatesExplanation
The United States is often depicted as an example of a weak state that has been unable and unsuccessful in using industrial policy to promote economic development. This is due to the fact that the United States has traditionally relied more on free market principles and a decentralized approach to economic development, rather than implementing a centralized industrial policy. This approach has allowed for greater flexibility and innovation, but has also resulted in some industries being left behind or struggling to compete on a global scale.Rate this question:
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- 34.
The Hecksher-Ohlin trade model argues that
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Developed countries have the same basic factor endowments
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Developed countries have the same comparative advantages
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Developed countries gave a lot of capital but little labor
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Comparative advantage arises from differences in factor endowments
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Comparative advantage arises from similarities in factor endowments
Correct Answer
A. Comparative advantage arises from differences in factor endowmentsExplanation
The Hecksher-Ohlin trade model argues that comparative advantage arises from differences in factor endowments. This means that countries will specialize in producing goods that use their abundant factors of production, such as land, labor, and capital. By focusing on producing goods that they have a comparative advantage in, countries can maximize their efficiency and benefit from trade. This model suggests that countries with different factor endowments can trade with each other and both gain from the exchange.Rate this question:
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- 35.
The WTOs dispute settlement mechanism is necessary
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Because this ensure that individual compliance with established rules is guaranteed
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In order to avoid punishment in the event of compliance
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So that governments can disregard WTO rules with impunity
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In order to authorize punishment in the event of noncompliance
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In order to avoid punishment by providing an independent quasi-judicial tribunal
Correct Answer
A. In order to authorize punishment in the event of noncomplianceExplanation
The correct answer is "in order to authorize punishment in the event of noncompliance". The dispute settlement mechanism of the WTO is necessary to ensure that there are consequences for countries that do not comply with the established rules. By having the authority to authorize punishment, the WTO can discourage governments from disregarding the rules and maintain the integrity of the global trading system. This mechanism provides an independent quasi-judicial tribunal that can impartially assess cases of noncompliance and impose appropriate penalties, thus promoting fairness and accountability.Rate this question:
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- 36.
During the interwar period (1919-1939) which of the following kinds of power distributions characterized the international system?
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Balance of power
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Tight bipolar
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A power vacuum
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Loose bipolar
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Unipolar
Correct Answer
A. A power vacuumExplanation
During the interwar period (1919-1939), the international system was characterized by a power vacuum. This means that there was a lack of dominant powers or a clear distribution of power. This was mainly due to the decline of major powers after World War I and the inability of emerging powers to establish themselves as dominant. The absence of a strong power or alliance allowed for instability and increased competition among nations, ultimately leading to the outbreak of World War II.Rate this question:
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- 37.
Cooperation in trade using the prisoners delimma model is possible when
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Iteration doesn't change the nature of the reward structure
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Governments use reciprocity strategies to enforce pareto suboptimal outcomes
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Governments care about the payoffs they will receive in future rounds of bargaining
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Governments use reciprocity strategies to enforce Nash equilibrium outcomes
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Reciprocity strategies don't change the nature of the reward structure
Correct Answer
A. Governments care about the payoffs they will receive in future rounds of bargainingExplanation
The correct answer is that governments care about the payoffs they will receive in future rounds of bargaining. This means that governments are willing to cooperate in trade using the prisoner's dilemma model because they are motivated by the potential benefits they can gain in future negotiations. This aligns with the concept of iterated prisoner's dilemma, where repeated interactions allow for the possibility of trust and cooperation to develop over time.Rate this question:
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- 38.
Trade and development policies in developing countries after WWI have been strongly shaped by political competition between
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Export and import oriented agricultural interests
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Export and import oriented manufacturing interests
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Rural-based agriculture and urban-based manufacturing
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Former colonial and nationalist agriculture
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Former colonial agriculture and nationalist manufacturing.
Correct Answer
A. Rural-based agriculture and urban-based manufacturingExplanation
The correct answer is rural-based agriculture and urban-based manufacturing. After World War I, developing countries faced the challenge of balancing their agricultural and manufacturing sectors. Rural-based agriculture refers to the focus on agricultural activities in rural areas, while urban-based manufacturing refers to the concentration of manufacturing industries in urban areas. This balance was influenced by political competition, as different interest groups advocated for policies that would benefit either the agricultural or manufacturing sector.Rate this question:
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- 39.
The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a
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International institution dedicated to eliminate protectionism in developing countries in the world trade system
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International institution dedicated to promoting protectionism in developing countries in the world trade system
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International institution dedicated to promoting the interests of developing countries in the world trade system
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International institution dedicated to replacing colonialism in the world trade system
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International institution dedicated to promoting the interests of advanced industrian countries in the world trade system
Correct Answer
A. International institution dedicated to promoting the interests of developing countries in the world trade systemExplanation
The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as an international institution dedicated to promoting the interests of developing countries in the world trade system. UNCTAD aims to help developing countries integrate into the global economy and advocate for their needs and concerns in international trade negotiations. It works towards reducing trade barriers, providing technical assistance and capacity-building, and promoting fair and equitable trade policies for developing nations.Rate this question:
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- 40.
Which of the following is NOT a factor that affects consumer behavior
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Marginal rate of substitution
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Income level
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Diminishing marginal utility
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Consumer indifference curves
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Trade
Correct Answer
A. Consumer indifference curvesExplanation
Consumer indifference curves are not a factor that affects consumer behavior. Consumer indifference curves are graphical representations that show different combinations of goods or services that provide the consumer with the same level of satisfaction. They do not directly influence consumer behavior but rather depict the consumer's preferences and choices. Factors such as marginal rate of substitution, income level, diminishing marginal utility, and trade can all have a direct impact on consumer behavior by influencing their purchasing decisions and preferences.Rate this question:
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- 41.
Two important probably changes within the WTO are
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The decline of developing countries as a powerful bloc within the organization, and the emergences of NGOs as a powerful force outside the organization
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The emergence of developing countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization
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The emergence of advanced countries as a powerful bloc within the organization, and the decline of NGOs as a powerful force outside the organization
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The emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization
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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.
Correct Answer
A. The emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organizationExplanation
The correct answer is the emergence of developing countries as a powerful bloc within the organization, and the emergence of NGOs as a powerful force outside the organization. This answer suggests that developing countries have gained more influence within the WTO, potentially due to their growing economies and increasing global presence. At the same time, non-governmental organizations (NGOs) have also become more influential outside the organization, possibly due to their ability to advocate for specific causes and mobilize public support. This shift in power dynamics reflects the changing landscape of global governance and the increasing role of non-state actors in shaping international policies.Rate this question:
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- 42.
Negotiating the best deal possible requires
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Governments to trust each other to reveal only information they wish to reveal
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Impatient governments to accept bad deals
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Patient governments to accept bad deals
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Governments to force each other to reveal information they do not wish to reveal
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Governments to reveal everything at the beginning of negotiations.
Correct Answer
A. Governments to force each other to reveal information they do not wish to revealExplanation
In order to negotiate the best deal possible, governments need to have the ability to compel each other to disclose information that they may not want to reveal. This implies that there is a level of mistrust between governments, and the only way to ensure transparency and fairness in negotiations is by exerting pressure on each other to disclose all relevant information. By forcing each other to reveal information they do not wish to reveal, governments can ensure that all parties have access to the necessary information to make informed decisions and reach a mutually beneficial agreement.Rate this question:
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- 43.
We would expect governments with proportional systems to maintain
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Lower tariffs because large groups benefit more from protectionism
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Lower tariffs because small groups benefit more from protectionism
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Lower tariffs than majoritarian electoral systems
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Higher tariffs than majoritarian electoral systems
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Higher tariffs because large groups benefit more from protectionism
Correct Answer
A. Lower tariffs than majoritarian electoral systemsExplanation
Proportional electoral systems aim to represent a broader range of political views and ensure fair representation for smaller political groups. In such systems, governments are more likely to maintain lower tariffs because smaller groups benefit more from protectionism. This is because smaller groups may not have the same level of influence or resources as larger groups to compete in the global market. On the other hand, majoritarian electoral systems tend to prioritize the interests of the majority, which may lead to higher tariffs as larger groups benefit more from protectionism.Rate this question:
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- 44.
Rent-seeking is the term used to describe
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Efforts by public officials to use the political system to achieve a higher-than-market return on an economic activity
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Efforts by public officials to use the economic system to achieve a higher-than-market return on political activity
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Efforts made by private actors to use the political system to achieve a higher-than-market return on an economic activity
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Efforts by public officials to pressure producers to pay a higher-than-average taxes on an economic activity
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Any corrupt practices associated with government interference in the market
Correct Answer
A. Efforts made by private actors to use the political system to achieve a higher-than-market return on an economic activityExplanation
Rent-seeking is the term used to describe efforts made by private actors to use the political system to achieve a higher-than-market return on an economic activity. This refers to individuals or groups seeking to gain economic benefits through lobbying, influencing policies, or obtaining special privileges from the government. It involves leveraging political connections or manipulating the system to secure advantages that go beyond what would be obtained through normal market competition. This can lead to inefficiencies, distortions in resource allocation, and hinder overall economic growth.Rate this question:
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- 45.
Marxists believe that in capitalist societies
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Politics (the state) should or does determine economics
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The state is the only important economic actor
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Economic change occurs through market equilibrium
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Economics determines politics
Correct Answer
A. Economics determines politicsExplanation
Marxists believe that economics determines politics because they argue that the economic structure of a society, particularly the mode of production, shapes the political and social relations within that society. According to Marxists, the ruling class in a capitalist society controls the means of production and uses their economic power to influence and shape political institutions and policies in their favor. They contend that the state, which is seen as a tool of the ruling class, serves to maintain and reproduce the existing economic order. Therefore, Marxists argue that economics holds primacy in determining the political dynamics of a capitalist society.Rate this question:
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- 46.
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?
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The economic interests of business and workers
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How the US political process transforms these interests into trade policy.
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How the US policy affects business and workers in other countries
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How the International Monetary Fund is likely to respond to tariffs
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The role IGOs like WTO play in regulating policies governments adopt.
Correct Answer
A. How the International Monetary Fund is likely to respond to tariffsExplanation
The given answer, "how the International Monetary Fund is likely to respond to tariffs," is not one of the five elements to consider in understanding International Political Economy. The question focuses on the steel tariffs between the United States and Japan and the factors involved in this scenario. The answer options all relate to different aspects such as economic interests, the US political process, the impact on business and workers in other countries, and the role of international organizations like the WTO. The International Monetary Fund's response to tariffs is not mentioned or relevant to the given context.Rate this question:
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- 47.
Explanatory Studies are primarily oriented toward explaining
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Who makes foreign economic policy choices in governments
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How governments make foreign economic policy choices
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When governments make foreign economic policy choices
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Where governments make foreign economic policy choices
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Why governments make foreign economic policy choices
Correct Answer
A. Why governments make foreign economic policy choicesExplanation
Explanatory studies are primarily oriented toward understanding the reasons or motivations behind governments' decisions regarding foreign economic policy choices. These studies aim to explain the underlying factors that influence governments in making these choices. By analyzing the various political, economic, social, and historical factors, explanatory studies seek to provide insights into the why behind governments' foreign economic policy decisions.Rate this question:
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- 48.
The growth of the WTO membership and the emergence of of the G-20 as a powerful bloc within the organization
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Has lowered the stakes of trade negotiations
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Has made it easier to find packages acceptable to the full membership
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Has reversed the apparent tendency to place business interests before consumer interests
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Has made it more difficult to find packages acceptable to the full membership
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Has decreased market liberalism.
Correct Answer
A. Has made it more difficult to find packages acceptable to the full membershipExplanation
The growth of the WTO membership and the emergence of the G-20 as a powerful bloc within the organization has made it more difficult to find packages acceptable to the full membership. This is because with more members and a powerful bloc, there are more diverse interests and perspectives to consider, making consensus harder to achieve. The increased complexity and diversity of negotiations can lead to more disagreements and challenges in finding mutually agreeable solutions for all members.Rate this question:
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- 49.
Opportunity cost refers to
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The cost of foregone consumption
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Consumer utility preferences
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Comparative advantage
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The efficiency of choices made about the use of abundant resources
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The cost of foregone production
Correct Answer
A. The cost of foregone productionExplanation
Opportunity cost refers to the cost of foregone production, meaning the value of the next best alternative that is given up when making a choice. It represents the benefits that could have been gained from an alternative option that was not chosen. In other words, opportunity cost is the trade-off or sacrifice made in terms of production or output when deciding to allocate resources in a certain way. It helps in evaluating the efficiency and effectiveness of choices made regarding the use of resources.Rate this question:
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