Deck 9: Political Economy: National and Global Perspectives

Question 1

Neo-classical economics assumes that free markets behave irrationality and thus strong government intervention is required.

Answer 1

False

Question 2

Which two entities do most studies in political economy take to be their principal objects of concern?

A) States and markets.
B) States and corporations.
C) Governments and markets.
D) Markets and corporations.

Answer 2

A

Question 3

Which of the following about mercantilism are correct? Please select all that apply.

A) Mercantilism comes from 'mercator' in Flemish.
B) Mercantilism comes from 'merchant' in Latin.
C) Mercantilist ideas were expressed as early as the 16^th century.
D) Mercantilist ideas were expressed as early as the 17^th century 1664.

Answer 3

B, D

Question 4

A basic premise of mercantilism is that national wealth and military power go hand in hand, each supporting the other.

Question 5

Mercantilism supports the ideology of the free market while at the same time supporting a strong state along the lines of realist principles.

Question 6

The principal elements of early liberal political economy include which of the following?

A) Individual initiative.
B) Laissez-faire.
C) Collective national interest.
D) Self-interest.

Question 7

John Maynard Keynes is regarded as a pro-state liberal because he believed which of the following to be true?

A) The role of the state is essential in producing the conditions for overall social, political, and economic well-being.
B) The sum of rational individual action always coincides with what is good for the state as a whole.
C) The market is not a source of infallible wisdom and the state is therefore required to make essential adjustments.
D) The functions of the state are undermined by free market forces.

Question 8

The 'new political economy' promoted by Robert W. Cox accepts the basic form of world order developed over the centuries but insists on serious reforms to make it more equitable.

Question 9

The 'Bretton Woods' institutions that emerged as part of the post-war economic order include which of the following? Please select all that apply.

A) The Internal Monetary Fund.
B) The Gold Standard.
C) The General Agreement on Tariffs and Trade.
D) The International Bank for Reconstruction and Development.

Question 10

Which factors led to calls for a New International Economic Order (NIEO) in the 1970s?

A) Soaring energy costs.
B) Increasing indebtedness.
Incorrect
C) Inflation.
D) All of the above.

Question 11

Structural adjustment programmes imposed by the World Bank and the IMF on poorer countries from the 1980s include which of the following measures?

A) Stimulation of public spending.
B) Restrictions on public spending.
C) Privatization of state resources.
D) Nationalization of state resources.

Question 12

The 'Millennium Development Goals' (MDGs) set 2017 as the year by which the number of people living in extreme poverty would be halved.

Question 13

The thriving economies of the Asia-Pacific region have relied solely on the dynamics of free market forces with minimal state involvement in stimulating favourable conditions for economic growth and development.

Question 14

The Association of Southeast Asian Nations (ASEAN) is a regional organization whose original purpose was concerned mainly with what?

A) Enhancing security in the region.
B) Developing trade links between Southeast Asia and Europe.
C) Promoting deeper integration with East Asia and Australasia.
D) Opposing Japanese forces during World War II.