Excercises of IPE

Which country played a fundamental role in the establishment of the liberal trading system after WWII?

• The Soviet Union

• China

• The United States

• Germany

Economists define an "efficient" choice as one that

• costs the least, regardless of benefits.

• gives you the most benefit with the least cost.

• uses all your available resources with none left over.

• gives you the most benefit, regardless of cost.

International political economy can be defined as

• the international organizations such as the International Monetary Fund and the World Bank that direct international investments

• the comparative advantage industrialized nations have over agriculturally- based nations

• the mutual relationship between the international politics and national economy

• the domestic fiscal and monetary policies developed by sovereign states

What, according to Classical economic theory, was the purpose of Mercantilism in the 18th century?

• A means by which to strengthen the sovereign state, and inherently linked to international conflict.

• A means by which to promote societal security for the populations of states.

• A route to increasing imports and transnational trade.

• Not a significant economic theory until after the 18th century.

Mercantilism

• sees one state's gain as the other state's loss

• aims to maximize sources of wealth within one's borders

• is the economic doctrine of the strong

• a and b are both correct

Which of the following statements would a mercantilist NOT agree with?

• Imports are desirable

• Trade is a zero-sum activity.

• The purpose of trade is to amass revenues from exports.

• Policies should promote exports and discourage imports.

Alexander Hamilton, the United States' first secretary of treasury, advocated protectionist policies to achieve what objective?

• protect American farmers

• protect American jobs

• prevent unfair competition with China

• protect the new nation's manufacturers

• prevent offshoring to Mexicore

Which country was NOT included in the construction of the postwar liberal economic order after 1945?

• Canada

• France

• Soviet Union

• West Germany

Which of the following is referred to as a predecessor to WTO?

• IMF

• World Bank

• GATT

• OPEC

Which of the following is NOT among the three theoretical approaches to IPE?

• social democracy

• economic liberalism

• mercantilism, economic nationalism

• Marxism