Deck 4: Political Economy

Question 1

If money becomes too costly to borrow, the result may be:

A)deflation.
B)inflation.
C)devaluation.
D)a fixed currency rate.
E)uneven taxation rates.

Answer 1

A

Question 2

If too much money is available relative to the supply of goods, one problem that may result is:

A)deflation.
B)inflation.
C)devaluation.
D)a fixed currency rate.
E)uneven taxation rates.

Answer 2

B

Question 3

The ________ is in charge of regulating the supply of money in a country.

A)national trust
B)central bank
C)currency board
D)federal mint
E)gold standard

Answer 3

B

Question 4

Restrictions that make it difficult to sell foreign goods in local markets are examples of:

A)tariffs.
B)quotas.
C)nontariff regulatory barriers.
D)regulatory fees.
E)free-trade zones.

Question 5

Markets can best be defined as:

A)fixed locations where products are bartered.
B)the interaction between the forces of supply and demand that allocate resources.
C)government-produced public goods.
D)an outmoded form of resource distribution.
E)an indirect form of taxation.

Question 6

When governments print more money because they lack revenue, one result may be:

A)hyperdeflation.
B)hyperdevaluation.
C)hyperinflation.
D)hyperfixation.
E)hypertaxation.

Question 7

In many countries, most social expenditures benefit:

A)the very poor.
B)the middle class and the wealthy.
C)only the wealthiest.
D)only those with political connections.
E)ethnic minorities.

Question 8

In the United States, the government cannot take a citizen's property without just compensation.This is an example of:

A)democracy.
B)capitalism.
C)a property right.
D)a weak state.
E)social democracy.

Question 9

Different views regarding the relationship between state and market in order to strike a relationship between freedom and equality are known as:

A)economic statism.
B)political market regimes.
C)political-economic systems.
D)market-property-state triads.
E)economic attitudes.

Question 10

How the state manages the ownership of goods and services is referred to as:

A)property rights.
B)marketization.
C)parasitism.
D)civil property.
E)asset rights.

Question 11

Liberalism's view of the relationship between freedom and equality is to favor:

A)equality over freedom.
B)freedom over equality.
C)freedom and equality equally.
D)neither freedom nor equality.
E)democracy over freedom and equality.

Question 12

There is a strong connection between political economic systems and:

A)ideology.
B)political attitudes.
C)the electoral system.
D)level legitimacy.
E)electoral systems.

Question 13

_________ are two of the most fundamental components of political economy.

A)Markets and property
B)Income and markets
C)Property and assets
D)Income and assets
E)Supply and demand

Question 14

Countries with a wide range of social expenditures tend to have:

A)less democracy.
B)higher taxes.
C)weaker states.
D)greater inequality.
E)more federalism.

Question 15

Taxes on imported goods are known as:

A)tariffs.
B)quotas.
C)nontariff barriers.
D)regulatory fees.
E)free-trade zones.

Question 16

The state as a night watchman with few powers is associated with:

A)liberalism.
B)mercantilism.
C)communism.
D)social democracy.
E)anarchism.

Question 17

Social democracy can be defined as a system that:

A)attempts to balance freedom and equality.
B)favors equality over freedom.
C)favors freedom over equality.
D)opposes both freedom and equality.
E)favors environmental concerns over freedom and equality.

Question 18

Which of the following is not a public good in the United States?

A)National defense.
B)Health care.
C)Primary education.
D)Highways.
E)Police.

Question 19

The total market value of all goods and products produced in a year is known as:

A)the gross domestic product.
B)the national comparative income.
C)comparative national economics.
D)purchasing power parity.
E)the Human Development Index.

Question 20

Public goods are best defined as:

A)goods used by all or most in society that no one person can own.
B)goods that only members of the state and government may use.
C)any good that exists beyond the sovereignty of a state's borders.
D)any good that exists solely within the sovereignty of a state's borders.
E)the welfare state.

Question 21

Purchasing power parity is a way to measure:

A)inequality between people.
B)the buying power of income across countries.
C)changes in inequality over time.
D)differences in social expenditures.
E)how high tax rates should be.

Question 22

The Gini index is one way that social scientists measure:

A)total national wealth.
B)inequality.
C)the environmental impact of development.
D)the distribution of public goods.
E)public health relative to national wealth.

Question 23

Parastatals are commonly associated with which political economic systems?

A)Mercantilism and communism.
B)Anarchism and liberalism.
C)Mercantilism and social democracy.
D)Social democracy and anarchism.
E)Anarchism and communism.

Question 24

Since 2008, the main trend in political economic systems has been:

A)increased criticism of liberalism.
B)increased criticism of social democracy.
C)resurgent communism.
D)a growth in anarchic political economic systems.
E)shifts in tax forms from national income tax to value-added tax.

Question 25

What has been the global trend of inequality over the past 20 years?

A)Countries have become more equal relative to each other.
B)Countries have become unequal relative to each other.
C)Most countries' domestic populations have become more equal.
D)The global distribution of domestic or international wealth has not changed.
E)The global Gini coefficient has stayed largely the same.

Question 26

Over the past 25 years, countries around the world have become:

A)more liberal.
B)less liberal.
C)more Communist.
D)more mercantilist.
E)less healthy.

Question 27

Which political economic system views property as a form of exploitation?

A)Social democracy.
B)Communism.
C)Mercantilism.
D)Liberalism.
E)Statism.

Question 28

What basic public goods should a state provide? What should be left to the market?

Question 29

Which political economic system views the economy as an instrument to serve state power and national sovereignty?

A)Social democracy.
B)Communism.
C)Mercantilism.
D)Liberalism.
E)Anarchism.

Question 30

Neo-corporatism is an example of which political economic system?

A)Social democracy.
B)Communism.
C)Mercantilism.
D)Liberalism.
E)Anarchism.

Question 31

The UN Human Development Index measures:

A)wealth, health, and education.
B)wealth, goods, and services.
C)health, transportation, and gender relations.
D)wealth and gender relations.
E)expenditures on health care relative to national defense.

Question 32

Japan's economic success is often attributed to which political economic system?

A)Social democracy.
B)Communism.
C)Mercantilism.
D)Liberalism.
E)Statism.

Question 33

Mercantilism is best associated with which of the following policies?

A)Free trade.
B)Tariff barriers.
C)Elimination of all private property.
D)Neo-corporatism.
E)National health care.

Question 34

What is the relationship between wealth and happiness?

A)Wealthier countries are generally unhappier than poorer ones.
B)Wealthier countries are generally happier than poorer ones.
C)Wealthier countries are generally as happy as poor countries.
D)There is no neat relationship between wealth and overall happiness.
E)People in the Northern Hemisphere are happier than people in the Southern Hemisphere.

Question 35

Which part of the world is most commonly associated with social democracy?

A)South America.
B)Europe.
C)Asia.
D)North America.
E)The former Soviet Union.

Question 36

Why is liberalism stronger in North America than in Europe?

Question 37

Does inequality pose a threat to any particular political economic system(s)? Can inequality grow if everyone's standard of living is on the rise? What political economic system is likely to produce the greatest amount of happiness?

Question 38

For whom is free trade positive? For whom is it negative? Should trade be controlled and, if so, by what means and in what areas?

Question 39

Why has liberalism become a more dominant political economic system over the past few decades? Is this change good or bad?