Deck 10: Political Economy of Wealth

Question 1

The Japanese model of market-state relations is known as

A)bureaucratic authoritarianism
B)the developmental state
C)social market democracy
D)a command economy

Answer 1

B

Question 2

An economic system in which most prices, property, and production are directly controlled by the state is best defined as

A)capitalism
B)a market economy
C)communism
D)a command economy

Answer 2

D

Question 3

Neoliberals in the 1980s were skeptical about which notion?

A)the ability of a state to foster economic growth through intervention in the market
B)the ability of the market to recover after a collapse
C)the ability of undeveloped states to keep up with industrialized nations
D)the ability of international economic NGOs

Answer 3

A

Question 4

Supporters of neoliberal policies argue that the failure of these polices in many states in the Global South has been due to

A)authoritarian governments
B)incomplete implementation of the policies
C)national differences
D)fundamentally flawed policies

Question 5

The control of the entire supply of a valued good or service by one economic actor is known as

A)a public good
B)an externality
C)a monopoly
D)deficit regulation

Question 6

Which of the following is an example of an externality?

A)the cost of building infrastructure
B)the cost of producing a car
C)the cost of environmental damage
D)the cost of workers' wages

Question 7

"Market failure" is best defined as

A)a phenomenon that occurs when markets fail to perform efficiently or they fail to perform according to other widely held social values
B)a phenomenon that occurs when markets perform efficiently or they perform according to other widely held social values
C)a phenomenon that occurs when markets crash, generating an economic crisis such as during the Great Depression
D)a phenomenon that occurs when markets experience simultaneous high inflation and high unemployment

Question 8

The Japanese bureaucracy informally influences industries and firms through a practice known as

A)administrative guidance
B)negotiated regulation
C)state-business collusion
D)the postal savings system

Question 9

A cost or benefit of the production process that is not fully included in the price of the final market transaction when the product is sold is known as

A)a public good
B)an externality
C)a monopoly
D)none of the above

Question 10

The social market economy in Germany

A)has long been a bone of contention internationally
B)was put in place in the 1980s
C)gives an important role to unions and religious organizations
D)is based on state ownership of business

Question 11

When governments spend more than is collected in revenue, they engage in

A)monetary policy
B)deficit spending
C)natural monopolies
D)average spending

Question 12

A healthy market economy requires the government to

A)have a limited role in the market
B)absolutely do not participate in the market
C)completely control the market
D)limit itself to the prevention of monopolies only

Question 13

What effect(s) has globalization had on nation-states?

A)the eradication of the nation-states
B)the weakening of nation-states
C)the strengthening of national economies
D)firms have taken over governing duties in nation-states

Question 14

Keynesianism and neoliberalism disagree with regard to unemployment because

A)Keynesianism posits that full employment is possible through correct economic policies.
B)Neoliberalism posits that full employment is only possible with correct economic policies.
C)Keynesianism posits that full employment is impossible regardless of economic policies.
D)Neoliberalism posits that full employment is possible through certain economic policies.

Question 15

When a state tries to prevent or regulate monopolies, it acts within which of the following?

A)its beneficial role
B)its essential role
C)its subordinate role
D)its mandatory role

Question 16

Keynesians believe that changes in the ______ of a state are required to stimulate the economy.

A)fiscal policies
B)social policies
C)tax policies
D)retirement age

Question 17

An economic system in which individuals and firms exchange goods and services in a largely unfettered manner is best defined as

A)capitalism
B)a market economy
C)communism
D)a command economy

Question 18

The amount of money a government prints and puts into circulation and the basic interest rates the government sets are the basis of a state's

A)monetary policy
B)fiscal policy
C)environmental policy
D)statutory policy

Question 19

Which of the following argues for a reduced role for government in the economy?

A)Keynesianism
B)neoliberalism
C)consociationalism
D)utilitarianism

Question 20

Examples of public goods include all of the following EXCEPT

A)defense
B)infrastructure
C)laws
D)telephone service

Question 21

The European common currency, the euro, was established by

A)the Helsinki Accords
B)the Treaty of Rome
C)the Treaty of Maastricht
D)the Treaty of Paris

Question 22

Economic reform in Japan has been complicated by

A)Japanese companies moving production abroad
B)low levels of individual savings
C)a weak bureaucracy
D)demographic imbalance

Question 23

Stagflation is a period in which

A)There is high unemployment in the market.
B)There is a high inflation rate in the market.
C)high debt
D)There is high unemployment and high inflation in the market.

Question 24

The cost of pollution produced by a factory is an example of

A)negative externality
B)fiscal policy
C)monetary policy
D)capitalism

Question 25

Goods and services that cannot or will not be provided by the market because their costs are too high or their benefits too diffuse are called

A)natural monopolies
B)public goods
C)monopolies
D)externalities

Question 26

An economic system in which individuals and firms exchange goods and services in a largely unfettered manner is a

A)market economy
B)command state
C)communist economy
D)developmental state

Question 27

Market economy and capitalism differ because

A)Capitalism requires the government to provide public goods while market economy doesn't.
B)Capitalism practices deficit spending while market economy doesn't.
C)Market economy does not require private property and capitalism does.
D)There is no difference; the terms mean the same thing.

Question 28

Neoliberalism was first championed by A.Jimmy Carter
B)John Maynard Keynes
C)Tony Blair
D)Milton Friedman

Question 29

In the 1990s, one of Japan's largest economic problems was

A)lack of quality production
B)dramatically decreased economic growth
C)an unusually young population
D)high levels of inequality

Question 30

Within the euro zone, who controls member states' fiscal policies?

A)Germany
B)each state controls their own fiscal policy
C)Switzerland
D)all states agree on a common policy

Question 31

Which of the following countries pioneered the social market economy?

A)Japan
B)Germany
C)Soviet Union
D)Brazil

Question 32

Which of the following countries have an economic model very close to the traditional concept of laissez faire?

A)the United States
B)Germany
C)Mexico
D)Japan

Question 33

Fiscal policy refers to the

A)amount of money a government prints and puts into circulation
B)interest rates the government sets
C)government's budgetary policy
D)government's deficit spending

Question 34

Limited government intervention in the economy is typical of which of the following economic approaches?

A)Keynesianism
B)privatizationism
C)feudalism
D)neoliberalism

Question 35

Which of the following countries rely on an economic model defined as the "developmental state"?

A)the United States
B)Germany
C)Mexico
D)Japan

Question 36

A natural monopoly exists in a situation in which

A)competition decreases a good's price
B)it is impossible to exclude someone from consumption of a good
C)competition in the provision of a good or service would raise costs and reduce efficiency
D)one supplier controls the entire supply of a good or service

Question 37

In comparison to German labor unions, Japanese unions are

A)weaker
B)stronger
C)at the same level of strength

Question 38

The idea of globalization as a key issue in international political economy took off in the

A)1880s
B)1950s
C)1970s
D)1990s

Question 39

Monetary policy as instituted in the United States under President Reagan aimed at lowering

A)inflation
B)debt
C)taxation
D)deficit

Question 40

The primary school of thought opposing Keynesianism is known as

A)neoliberalism
B)socialism
C)demand-side
D)regulated capitalism

Question 41

The idea of "convergence" implies that

A)globalization will force countries to converge their economic systems, creating a unified global currency
B)globalization will make nation-states powerless and obsolete
C)globalization will force similar economic and social policies across all countries
D)none of these

Question 42

The economic model of Germany is best defined as liberal market economy.

Question 43

What is one advantage of a coordinated market economy?

A)lessens the influence of labor unions
B)encourages marginal innovation
C)creates a flexible workforce that can migrate from firm to firm
D)increases efficiency and variety in the stock market

Question 44

The "opposite" of a market economy is a command economy.

Question 45

In a liberal market economy, government

A)plays a large role by negotiating agreement among different firms
B)encourages insider trading between different firms
C)creates strict antimonopoly laws
D)all of these

Question 46

The argument that a dual convergence will take place, and CMEs and LMEs will continue to have significant differences, is a component of the

A)globalization assimilation policy
B)liberal market economies argument
C)varieties of capitalism (VOC) perspective
D)competitive advantage strategy

Question 47

The term "convergence" helps explain how different kinds of institutions in different economies are complementary.

Question 48

Capitalism is the combination of a market economy with private property rights.

Question 49

U.S.economic policy typically fluctuates between monetarism and neoliberalism.

Question 50

All together throughout the European debt crisis (2010-2016), Greece accepted how many bailouts?

A)none
B)one
C)two
D)three

Question 51

The Japanese model of regulated capitalism is known as the developmental state.

Question 52

In response to globalization, LMEs tend to

A)increase the role of unions
B)proceed very cautiously
C)increase worker training
D)strengthen market mechanisms

Question 53

During its 1970s-economic crisis, Britain tried a corporatist wage bargaining approach, the result of which was that

A)Britain's labor unions became very similar to Germany's
B)local unions ignored what peak associations negotiated
C)the number of strikes was reduced
D)British industry's influence was damaged

Question 54

Globalization is the rapid increase in the flow of economic activity, technology, and communication around the globe.

Question 55

According to the VOC school of thought, wealthy market economies are divided into

A)FMIs and WTOs
B)FMIs and LMEs
C)CMEs and WTOs
D)LMEs and CMEs

Question 56

According to the "comparative institutional advantage" idea, globalization will eventually overwhelm the power of nation-states to set distinct economic policies.

Question 57

A Keynesian diagnosis of economic downturn blames lack of demand and suggests that the solution is minimal intervention.

Question 58

The United Kingdom leaving the European Union is known in common terms as "Brexit."

Question 59

Germany's corporatist system long used tripartite agreements among government, business, and labor to set major social and economic policies.

Question 60

The United Kingdom leaving the euro zone is known in common terms as "Brexit."

Question 61

Why can markets not provide public goods?

Question 62

Like Germany, Japan had a very successful economic model that fell on hard times in the 1990s.What changed to make the model less successful? How does this compare with the decline of Germany's social market economy model? What do both teach us about the future of CMEs in the face of globalization?

Question 63

Briefly explain why the development of the welfare state in Germany began (what were the issues it was meant to address).

Question 64

Why was the social market economy such a success story from the 1960s to the 1980s? What changed to make it seem less successful, and what does that teach us about the prospects for more extensive government intervention in the economy in the future?

Question 65

Policy recommendations of neoliberals include (list at least two).

Question 66

The globalization debate was first manifested in the 1970s in wealthy countries as a concern about deindustrialization

Question 67

List at least two policy examples advocated by Keynesian economists.

Question 68

Compare and contrast Keynesianism and Neoliberalism.What are they key differences?

Question 69

Among the beneficial roles of states, prevention or regulation of monopolies is an important task.Why is it considered "acceptable" even within states that believe in the limited role of the state in the economy?

Question 70

Provide two examples of a coordinated market economy.

Question 71

Contrary to the common assumption that market economies are independent of governments, they in fact rely on the state in many ways.What are some of the ways that the state is important to the existence of a market economy?

Question 72

Why do states have to provide public goods to their citizens? Please make sure to illustrate your answer with examples of public goods.

Question 73

According to the convergence theory, what policy ideas do governments adopt in order to attract industries?

Question 74

What is the difference between monopolies and natural monopolies?

Question 75

Provide two examples of a liberal market economy.

Question 76

Name at least two essential economic roles of the state.

Question 77

Britain's majoritarian democracy allows ruling parties to implement policies pretty much as they please, at least in the short run. Has this been beneficial or harmful to the country's economic well-being?

Question 78

How does the United States demonstrate the classic elements of an LME, and how does it differ from the LME model, and why?

Question 79

Describe why sound monetary policy is now more difficult for a state to achieve.

Question 80

Why have some states intervened in the market economy more than others? Choose two very different examples and explain their contrasting approaches.