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1 .
International political economy ________.
  1. investigates political processes and their domestic and international economic consequences
  2. examines various tactics political actors use in their attempts to decrease the scope of global governance
  3. is another name for the World Bank
  4. refers to the web of multinational corporations that exert varying degrees of control over individual world governments and international organizations
2 .
In a mercantilist economic system, ________.
  1. wealth is evenly distributed among producers and consumers
  2. wealth can be created
  3. wealth is finite
  4. wealth is shared within trade alliances
3 .
Mercantilism ________.
  1. is based on degrowth
  2. considers that wealth is composed of precious metals and paper currencies such as the dollar, euro, and peso
  3. seeks a surplus in the balance of payments
  4. favors trade liberalization policies
4 .
Adam Smith rejected mercantilism and proposed ________.
  1. that trade barriers promote the economy
  2. modernization theory
  3. that trade liberalization benefits individuals and countries
  4. that a country should invest in economic activities regardless of its comparative advantages
5 .
True or false? Enlightenment thinkers rejected the mercantilist idea that wealth is finite, proposing that wealth could in fact be created.
  1. True
  2. False
6 .
The three levels of analysis in IPE are ________.
  1. local, domestic, and foreign
  2. individual, state, and system
  3. liberal, conservative, and authoritarian
  4. economic, environmental, and social
7 .
The Bretton Woods Institutions include ________.
  1. the World Trade Organization (WTO) and the United Nations (UN)
  2. the League of Nations and NATO
  3. the International Monetary Fund (IMF) and the World Trade Organization (WTO)
  4. the International Monetary Fund (IMF) and the World Bank
8 .
The Bretton Woods Institutions were initially created to ________.
  1. maintain peace and economic prosperity in the world
  2. encourage globalization
  3. restrain trade liberalization
  4. promote protectionist policies
9 .
Which institution was proposed but not created in the Bretton Woods Conference?
  1. International Monetary Fund (IMF)
  2. World Trade Organization (WTO)
  3. International Trade Organization (ITO)
  4. International Bank for Reconstruction and Development
10 .
The end of the Cold War resulted in ________.
  1. increased focus on economic policies in authoritarian regimes
  2. support for protectionist policies
  3. majoritarian emphasis on trade relations among developed countries
  4. furthering of economic growth and democratic institutions
11 .
The key tenet of modernization theory is that ________.
  1. economic growth promotes the development of the upper classes in society
  2. social capital hampers political representation
  3. increased political representation promotes the establishment of democratic institutions
  4. trade liberalization stunts economic growth
12 .
True or false? Modernization theory has clearly established a causal link between economic growth and democratic institutions.
  1. True
  2. False
13 .
An exchange rate regime in which governments allow their currencies to fluctuate within margins is referred to as a ________.
  1. fixed (pegged) exchange rate
  2. floating (flexible) exchange rate
  3. multilateral exchange rate
  4. variable exchange rate
14 .
________ determine(s) the price of currency in a floating (flexible) exchange rate regime.
  1. The supply and demand of a currency
  2. Domestic interest rates
  3. The stock market
  4. The gold standard
15 .
At the beginning of the 19th century, some political philosophers proposed responses to the problem of widespread policy and inequality. Although each of their proposals had singular characteristics, what did they have in common?
  1. dictatorship of the proletariat
  2. social ownership of the means of production by the people
  3. laissez-faire economy, a free market with minimal government intervention
  4. social security benefits
16 .
Literature on the possible ways to deal with the environmental crisis is divided into two currents of thought. These currents are ________.
  1. socialism and communism
  2. laissez-faire and free market economy
  3. degrowth and sustainable development
  4. degrowth and globalization
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