Chapter 9 Self-test questions

. Political economy draws heavily on the work of …

Adam Smith.

Jeremy Bentham.

Karl Marx.

Answers a and c.

. Mercantilist arguments are based on the idea that ...

free trade between nations is always beneficial to all.

merchants should not be allowed to influence politics.

only merchants should be allowed to influence politics.

national wealth and military power are fostered most effectively by protecting domestic producers from overseas competition.

. David Ricardo's definition of 'comparative advantage' is …

the same rule which regulates the relative value of commodities in one country regulates the relative value of the commodities exchanged between two or more countries.

the same rule which regulates the relative value of commodities in one country does not regulate the relative value of the commodities exchanged between two or more countries.

the same rule which regulates the absolute value of commodities in one country does not regulate the relative value of the commodities exchanged between two or more countries.

the same rule which regulates the absolute value of commodities in one country regulates the relative value of the commodities exchanged between two or more countries.

. Which of the following was a key opponent of mercantilism?

David Rizzio.

David Bacardi.

Adam Smith.

John Maynard Keynes.

. In economics, what does laissez-faire mean?

People should be left alone to do whatever they want.

Life should be made as fair as possible.

The state should exercise detailed control over the economy.

The state should not interfere in the detailed operations of the economy.

. The 'new political economy' associated with Robert W. Cox ...

celebrates the worldwide triumph of capitalism.

argues that the Soviet Union was an unmixed economic success.

questions existing realities and invites students of IR to rethink their ideas.

argues that capitalists should always invest in countries where the potential profits are greatest.

. The Bretton Woods agreement ...

led to a campaign to save the rainforest.

was a deal between developed nations to keep the Third World in poverty.

led to the establishment of the World Wildlife Fund (WWF).

led to the establishment of the International Monetary Fund (IMF).

. 'Structural adjustment' programmes require that ...

governments of poor countries should adopt privatization and other 'liberalizing' measures.

governments of poor countries should knock down all ugly or dilapidated buildings.

states with weak economies should redistribute more resources to the poor.

ministers in under-performing countries should go on diets and keep fit.

. The Asia-Pacific Economic Cooperation (APEC) forum ...

is part of a more general trend towards regional blocs.

accounts for over half of the world's GDP.

has member states which include authoritarian regimes as well as democracies.

All of the above are true.

. The European Union ...

can do nothing unless all of its member states agree.

is under the complete control of unelected bureaucrats.

requires member states to 'pool' sovereignty in a number of policy areas.

has already developed all of the key features of a centralized, unitary state.

Chapter 9 Self-test questions

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