Deck 10: Political Economy

Question 1

Which of the following best describes the field of political economy?

A) the study of production and trade and the relationship with government and the distribution of wealth and income
B) the study of systems of governance, and the analysis of political activities, thoughts, and behavior
C) the study of interconnectedness of politics, economics, and law on a global level
D) the study of the domestic politics, institutions, economies, and conflicts of different countries

Answer 1

A

Question 2

Which of the following economists developed the model for a government-economic relationship based on deficit spending?

A) Friedrich Hayek
B) John Maynard Keynes
C) Paul Krugman
D) Joseph Stiglitz

Answer 2

B

Question 3

Taxes that are placed on imported or traded goods are known as ______.

A) sin taxes
B) tax expenditures
C) tariffs
D) progressive taxes

Answer 3

C

Question 4

The resource curse refers to the situation in which ______.

A) there are people who will not pay to participate in achieving public goods or resources
B) an economic system is unable to produce or distribute needed goods, resources, or services
C) a country has vast natural resources but less economic growth, less democracy, or worse levels of development compared to countries without those resources
D) people overuse resources or goods available to all, thereby depleting it for all

Question 5

A system of exchange in which firms produce goods and consumers buy and use those goods is ______.

A) corporatism
B) an economy
C) fiscal policy
D) monetary policy

Question 6

The economist who is recognized as one of the first to define and discuss the concept of capitalism is ______.

A) Rahel Jaeggi
B) John Maynard Keynes
C) Adam Smith
D) Joseph Stiglitz

Question 7

Which of the following economic systems depends on supply and demand to regulate the availability and price of goods and labor?

A) capitalism
B) communism
C) socialism
D) social democracy

Question 8

Jaeggi's functional critique of capitalism argues that it is ______.

A) intrinsically dysfunctional and necessarily crisis-prone
B) exploitative and is either based on an unjust social structure or it produces one
C) the facilitator of a life that is impoverished, without meaning, or empty, and destroys essential components of that which belongs to a fulfilled, happy, and free life
D) prone to stagnation due to internal contradictions

Question 9

Jaeggi's ethical critique of capitalism argues that it is ______.

A) intrinsically dysfunctional and necessarily crisis-prone
B) exploitative and is either based on an unjust social structure or it produces one
C) the facilitator of a life that is impoverished, without meaning, or empty, and destroys essential components of that which belongs to a fulfilled, happy, and free life
D) prone to stagnation due to internal contradictions

Question 10

A scenario in which an economic system is unable to produce or distribute needed or wanted goods and services-especially public or nonexcludable goods-coincides with ______.

A) the free rider problem
B) market failure
C) the resource curse
D) the tragedy of the commons

Question 11

Which of the following best describes communism?

A) an economic system in which there is a free market wherein supply and demand regulates the availability and price of goods and labor
B) an economic system in which private property is abolished with a system of common ownership
C) an economic system that envisions a greater role for the state in controlling the negative aspects of free markets and providing significant welfare benefits
D) an economic system that utilizes government intervention to balance out the excesses of a free market system

Question 12

Which of the following economic systems envisions no private property, money or wealth, and a system of common ownership of goods and labor?

A) capitalism
B) communism
C) socialism
D) social democracy

Question 13

Command economies are economic systems in which ______.

A) states control all aspects of an economy
B) private property is abolished with a system of common ownership
C) there is a greater role for the state in controlling the negative aspects of free markets and providing significant welfare benefits
D) government intervention is used to balance out the excesses of a free market system

Question 14

Which of the following economic systems envisions a greater role for the state in controlling the negative aspects of free markets and providing significant welfare benefits?

A) capitalism
B) communism
C) socialism
D) social democracy

Question 15

Which of the following best describes social democracy?

A) an economic system in which there is a free market wherein supply and demand regulates the availability and price of goods and labor
B) an economic system in which private property is abolished with a system of common ownership
C) an economic system that envisions a greater role for the state in controlling the negative aspects of free markets and providing significant welfare benefits
D) an economic system that utilizes government intervention to balance out the excesses of a free market system

Question 16

Which of the following economic systems tries to "balance capitalist markets and private property with a greater degree of state intervention in the economy … in an effort to ameliorate the economic inequalities that the free market tends to create"?

A) capitalism
B) communism
C) socialism
D) social democracy

Question 17

Which of the following best describes the idea of corporatism?

A) a formal system of cooperation between business and government
B) a system of exchange between producers and consumers of goods
C) a mix of taxing and spending policies enacted by states
D) a determination of the value and amount of money in the system

Question 18

Which of the following best describes fiscal policy?

A) a formal system of cooperation between business and government
B) a system of exchange between producers and consumers of goods
C) a mix of taxing and spending policies enacted by states
D) a determination of the value and amount of money in the system

Question 19

Progressive taxes are those ______.

A) placed on goods and services to discourage people from buying them
B) placed on imported goods
C) foregone by governments due to payers' claims for reductions to their overall tax bills
D) that increase as income level rises

Question 20

Sin taxes are those______.

A) placed on goods and services to discourage people from buying them
B) placed on imported goods
C) foregone by governments due to payers' claims for reductions to their overall tax bills
D) that increase as income level rises

Question 21

Taxes placed on things like alcohol, marijuana, cigarettes, and profits from gambling are also commonly referred to as ______.

A) sin taxes
B) tax expenditures
C) tariffs
D) progressive taxes

Question 22

Tax expenditures are taxes ______.

A) placed on goods and services to discourage people from buying them
B) placed on imported goods
C) foregone by governments due to payers' claims for reductions to their overall tax bills
D) that increase as income level rises

Question 23

Tax breaks or things like home mortgage interest deductions on income taxes are examples of ______.

A) sin taxes
B) tax expenditures
C) tariffs
D) progressive taxes

Question 24

The determination of how much money is available in a country, along with its value, is ______.

A) corporatism
B) an economy
C) fiscal policy
D) monetary policy

Question 25

Which of the following best describes monetary policy?

A) a formal system of cooperation between business and government
B) a system of exchange between producers and consumers of goods
C) a mix of taxing and spending policies enacted by states
D) a determination of the value and amount of money in the system

Question 26

Inflation refers to the ______.

A) amount lenders can charge for the use of borrowed assets
B) increase in prices of goods due to the devaluation of a currency
C) sum of all economic activity in a state
D) value or price of one currency vis-à-vis another

Question 27

In monetary policy, interest rates refer to the ______.

A) amount lenders can charge for the use of borrowed assets
B) increase in prices of goods due to the devaluation of a currency
C) sum of all economic activity in a state
D) value or price of one currency vis-à-vis another

Question 28

The total sum of all economic activity is a country is known as ______.

A) interest
B) inflation
C) gross domestic product
D) exchange rates

Question 29

The provision of special subsidies and assistance for the poor (typically through tax revenue from wealthier taxpayers) is known as ______.

A) fiscal policy
B) redistribution policy
C) monetary policy
D) tax expenditure

Question 30

Which of the following best describes the field of international political economy?

A) the study of production and trade and the relationship with government and the distribution of wealth and income
B) the study the relationship between global politics and the global economy
C) the study and method used to examine the relationship between politics and economics across a range of states
D) the study of different countries' factor endowments or technological endowments that allow for the ability to produce particular goods at lower opportunity costs

Question 31

Research on the theory of comparative advantage involves which of the following?

A) the study of production and trade and the relationship with government and the distribution of wealth and income
B) the study the relationship between global politics and the global economy
C) the study and method used to examine the relationship between politics and economics across a range of states
D) the study of different countries' factor endowments or technological endowments that allow for the ability to produce particular goods at lower opportunity costs

Question 32

Fair trade refers to the adoption of ______.

A) lower trade barriers and little government involvement in trade and the economy
B) policies of retaliation against states perceived as 'cheating' by using trade and non-tariff barriers to stimulate their economies
C) various types of trade barriers to protect domestic goods and services from outside competition and comparative advantages
D) policies that advocate replacing foreign imports with domestic production

Question 33

Which of the following best describes the field of comparative political economy?

A) the study of production and trade and the relationship with government and the distribution of wealth and income
B) the study the relationship between global politics and the global economy
C) the study and method used to examine the relationship between politics and economics across a range of states
D) the study of different countries' factor endowments or technological endowments that allow for the ability to produce particular goods at lower opportunity costs

Question 34

Programs that provide small loans to people in impoverished situations-in many cases women-to allow them to purchase provisions as well as overhead to start small businesses are called ______.

A) payday advances
B) microlending
C) small scale subsidization
D) community development programs

Question 35

Political science research has shown that economic concerns are a primary issue for voters.

Question 36

The resource curse is a paradox in political economy.

Question 37

Adam Smith recognized that the purpose of studying political economy is to provide everyone with plentiful revenue.

Question 38

Communism, in its ideal form, has been attempted several times in the last century.

Question 39

The origins of socialism are rooted in disagreements about how the working class would take control of the state.

Question 40

The tax imposed by the 2010 Affordable Care Act on individuals who did not have health insurance was an example of a tax expenditure.

Question 41

Managing unemployment is a central feature of fiscal policy.

Question 42

Inflation is often kept in check by the implementation of targeted interest rates.

Question 43

Countries with capitalist economies are unable to smooth out the highs and lows of boom and bust cycles.

Question 44

In comparative political economy, states form the context in which political and economic actors interact.

Question 45

What are some of the similarities and differences between the various economic systems that have been adopted and are in use around the world? What are the social and political implications?

Question 46

In what ways can states (governments) affect their economies? Why might they pursue those options, and what are the consequences of those actions?

Question 47

Consider the impact of economic inequality for politics and society. What are some of the methods used to assess inequality? Prescribe a policy or set of policies that you think could be the most effective at ameliorating inequality, and why.

Question 48

Is democracy a good or bad thing for economic growth and development? Why?

Question 49

Does economic development encourage democratization (a growth in democracy)? How and why-or how and why not? Consider the different policies that states can adopt to affect the economy, the impact of regime types, and real world examples to support your argument.