Question 1

One of the major foci of the study of political economy is how politics determines important aspects of the economy.

Accepted Answer

The study of political economy involves the analysis of how political institutions and policies impact the economy, including issues such as income distribution, economic growth, international trade, and more. Therefore, politics are seen as a key determinant of important economic outcomes.

Question 2

The Developmental State model began in

Accepted Answer

The Developmental State model began in Japan, particularly after World War II, where the government played a significant role in guiding economic development and industrialization.

Question 3

While they had some important achievements in health and welfare,governments in command economies have a poor environmental record.

Accepted Answer

Governments in command economies have prioritized industrial growth over environmental protection, resulting in high levels of pollution and environmental degradation.

Question 4

Free-market economic reforms,which were introduced by Gorbachev in the Soviet Union in the 1980s and by Deng Xiaoping in China after the late 1970s led quickly to rapid economic growth in both countries.

Accepted Answer

While Deng Xiaoping's reforms in China led to significant economic growth and transformation into a global economic power, Gorbachev's reforms in the Soviet Union, known as Perestroika and Glasnost, did not result in rapid economic growth and contributed to the political instability that eventually led to the dissolution of the Soviet Union.

Question 5

China and Vietnam have both moved away from market socialism for a market economy.

Accepted Answer

While both China and Vietnam have implemented reforms that incorporate market mechanisms into their economies, they still maintain a significant level of state control and planning, characteristic of market socialism, rather than fully transitioning to a market economy.

Question 6

No government today has a complete policy of laissez faire.

Accepted Answer

While some governments may have more laissez faire policies than others, no government completely avoids any intervention in the economy. They typically have regulations and laws in place for things such as minimum wage, worker safety, and consumer protection.

Question 7

According to the Neoclassical Ideal,a primary government role in the economy is to guarantee that loans to new industries go to firms that promote the national interest.

Accepted Answer

The Neoclassical Ideal emphasizes minimal government intervention in the economy, focusing instead on free market mechanisms to allocate resources efficiently. It does not advocate for government to direct loans to specific industries or firms.

Question 8

Latin America's statism strongly discouraged government consumer subsidies.

Accepted Answer

Latin America's statism often involved heavy government intervention in the economy, including consumer subsidies for goods and services. These subsidies were seen as a way to support domestic industries and help low-income individuals, but they also led to inefficiencies and fiscal imbalances. In recent years, many countries in the region have started to cut back on these subsidies in order to reduce budget deficits and promote market-oriented reforms.

Question 9

Which of the following is an important reason why Latin American policy makers initially chose an ISI model of industrialization while East Asian planners quickly turned to an EOI model?

Accepted Answer

Latin America began to industrialize during the Great Depression, when there was a great decline in world trade. On the other hand, East Asia began its major industrial growth in the decades after World War II, when world trade was expanding rapidly. ISI was seen as necessary to address economic problems in Latin America while East Asia was able to take advantage of the expanding global market through EOI.

Question 10

The major accomplishment of many command economies has been reducing inequality.

Accepted Answer

Command economies, such as those found in communist countries, prioritize the distribution of resources and goods among the population. This often results in reducing inequality, as resources are distributed according to need rather than market demand or wealth. However, command economies have also been criticized for a lack of efficiency and innovation, and have often struggled to meet the diverse needs and preferences of their citizens.

Question 11

Which of these countries challenges the widespread belief that democracies are not well suited for the early expansion of industrialization?

Accepted Answer

India challenges the belief that democracies are not well suited for the early expansion of industrialization. India is the world's largest democracy and has experienced significant economic growth and industrialization in recent decades despite being a democracy.

Question 12

Because they had smaller populations and fewer agricultural products to export than did Argentina,Brazil,or Mexico,East Asian countries such as Taiwan and Singapore opted for an EOI economic strategy.

Accepted Answer

The statement correctly states that East Asian countries such as Taiwan and Singapore opted for an EOI (Export-Oriented Industrialization) economic strategy due to their smaller populations and fewer agricultural products to export compared to Argentina, Brazil, or Mexico.

Question 13

China emits much more greenhouse gas than the United States does,but only emits slightly more on a per-capita basis.

Accepted Answer

China's population is significantly larger than that of the United States, which means that even if China emits slightly less greenhouse gas per person, the total amount of emissions is much higher.

Question 14

Globalization appears to have narrowed the income gap between highly developed countries and most countries in Asia,Africa,and Latin America

Accepted Answer

Globalization has contributed to economic growth in many countries, but the income gap between highly developed countries and most countries in Asia, Africa, and Latin America has often widened, as the benefits of globalization have not been evenly distributed.

Question 15

When the ISI model was introduced in Latin America,its effect from the 1930s to the 1970s was to curtail economic development.

Accepted Answer

The ISI (Import Substitution Industrialization) model aimed to reduce foreign dependency through local production of industrialized products, leading to periods of economic growth and industrial development in various Latin American countries from the 1930s to the 1970s.

Question 16

What is the meaning of "sustainable development"?

Accepted Answer

Sustainable development refers to economic growth that does not compromise the ability of future generations to meet their own needs. It focuses on meeting the current needs without compromising the resources and opportunities that will be available for the future.

Question 17

The United States never ratified the Kyoto Protocol

Accepted Answer

The United States signed the Kyoto Protocol, but never ratified it, meaning it never became binding in the US.

Question 18

Under their Developmental State model,East Asian governments intervened less in the economy than European governments did.

Accepted Answer

Under the Developmental State model, East Asian governments actively intervened in the economy through policies such as state-led industrialization and export-oriented growth. This is in contrast to European governments, which generally followed a more laissez-faire approach to economic development.

Question 19

Which group of consumers was Latin American ISI production designed to serve?

Accepted Answer

Latin American ISI production was designed to serve the consumers in the Latin American nations' own country by promoting domestic manufacturing and reducing dependence on imported goods.

Question 20

Since the 1970s,China has moved away from a command economy.

Accepted Answer

Since the 1970s, China has implemented economic reforms that have moved away from a strict command economy towards a more market-oriented approach. However, the government still retains significant control over certain industries and sectors, and there are some elements of a centralized planning system in place.

Quiz 9: The Political Economy of Third World Development