What does the term “International Political Economy” (IPE) refer to?
a) The study of domestic economic policies
b) The relationship between politics and economics in the global context
c) The management of national economies
d) The economic policies of a single country
Which theory focuses on the exploitation of developing countries by wealthy nations in the global economy?
a) Liberalism
b) Dependency theory
c) Realism
d) Marxism
Which of the following is a key feature of liberal economic theory?
a) State intervention in the economy
b) Free markets and minimal government regulation
c) The prioritization of national economic goals
d) Focus on protectionism and tariffs
Which of the following institutions is primarily responsible for regulating international trade?
a) United Nations (UN)
b) International Monetary Fund (IMF)
c) World Bank
d) World Trade Organization (WTO)
Which theory argues that the world economy is shaped by the interests of the most powerful states?
a) Realism
b) Liberalism
c) Marxism
d) Mercantilism
Which of the following is a major function of the International Monetary Fund (IMF)?
a) Providing loans to developing countries for development projects
b) Facilitating global trade agreements
c) Monitoring exchange rates and offering financial assistance
d) Managing the supply of global oil reserves
What is the central goal of protectionism in international trade?
a) To encourage global competition
b) To ensure national economic growth through restricting imports
c) To promote free trade among all countries
d) To reduce government interference in the economy
Which of the following is a key characteristic of a mixed economy?
a) Complete government control over economic activity
b) Limited government involvement in the economy
c) A combination of market-driven forces and government regulation
d) The absence of private property
Which concept refers to the ability of a state to influence international economic outcomes?
a) Economic diplomacy
b) Comparative advantage
c) Economic power
d) Economic globalization
Which of the following is a criticism of globalization in the context of international political economy?
a) It leads to reduced government control over markets
b) It increases income inequality and benefits rich nations disproportionately
c) It promotes self-sufficiency in national economies
d) It prevents the flow of capital across borders
Which economic theory advocates for minimal government intervention in the economy and emphasizes free markets?
a) Keynesianism
b) Marxism
c) Liberalism
d) Mercantilism
Which of the following institutions provides financial assistance and loans to developing countries for economic development?
a) World Trade Organization (WTO)
b) United Nations (UN)
c) International Monetary Fund (IMF)
d) World Bank
Which of the following is an example of economic sanctions imposed by one country on another?
a) Increased foreign aid
b) Tariffs and trade barriers
c) Military intervention
d) Humanitarian assistance
What does the term “comparative advantage” refer to in international trade?
a) The ability of a country to produce a good at a lower opportunity cost than others
b) A country’s ability to dominate global markets
c) The policy of restricting imports to protect domestic industries
d) The pursuit of self-sufficiency in economic production
Which of the following is a consequence of a country running a trade deficit?
a) The country has more exports than imports
b) The country is exporting capital to other countries
c) The country is importing more than it exports, leading to borrowing or foreign debt
d) The country experiences a balance of trade equilibrium
Which of the following is a central feature of Marxist political economy?
a) The belief that economic power is concentrated in the hands of a few capitalist nations
b) The advocacy for free markets and minimal state intervention
c) The emphasis on the role of international trade in achieving economic growth
d) The notion of class struggle between the bourgeoisie and the proletariat
Which economic system emphasizes state control over resources and the pursuit of national economic interests?
a) Liberalism
b) Mercantilism
c) Socialism
d) Capitalism
Which of the following best describes the concept of “economic globalization”?
a) The complete separation of national economies
b) The integration of national economies through trade, investment, and capital flows
c) The rise of protectionist policies across the world
d) The establishment of a global central bank
Which international organization is responsible for setting the global rules for trade?
a) World Bank
b) United Nations
c) International Monetary Fund
d) World Trade Organization
Which of the following is an example of a trade bloc in international political economy?
a) European Union (EU)
b) United Nations (UN)
c) World Health Organization (WHO)
d) International Criminal Court (ICC)
What is the term for the international exchange of goods and services across borders?
a) Investment
b) Free market
c) International trade
d) Economic diplomacy
What does the term “capital mobility” refer to in the context of global economics?
a) The movement of labor across borders
b) The ability of capital (money and investments) to flow freely across national boundaries
c) The restriction of international financial transactions
d) The imposition of tariffs on foreign goods
Which of the following is an example of a multinational corporation?
a) World Bank
b) Apple Inc.
c) United Nations
d) International Monetary Fund
Which economic policy advocates for government spending to stimulate demand and reduce unemployment?
a) Monetarism
b) Keynesianism
c) Supply-side economics
d) Austrian economics
Which of the following is a major effect of inflation on an economy?
a) Increased purchasing power
b) A decrease in the value of money
c) A rise in the unemployment rate
d) A reduction in government spending
What does the “balance of payments” track in international political economy?
a) The profitability of multinational corporations
b) The total value of international aid provided by a country
c) A country’s transactions with the rest of the world, including trade and financial flows
d) The military expenditure of a country
Which of the following is a major function of central banks in international political economy?
a) Managing national trade agreements
b) Providing loans to developing countries
c) Controlling monetary policy and regulating the money supply
d) Enforcing international trade rules
Which of the following is a central idea of “neoliberalism” in international political economy?
a) Emphasis on free markets, deregulation, and privatization
b) Government control over all economic sectors
c) The promotion of international communism
d) The rejection of global trade and investment
