POSC 2601 Final Exam Questions with
100% Correct Answers
The world economy is (BLANK) integrated on a global scale, generating wealth
at a (BLANK) pace Correct Answer: Increasingly, accelerating
A (BLANK) would agree that a government's most useful role is to interfere in
economics only to regulate markets in order to help them function efficiently.
That is, politics should serve the interests of economic efficiency. Correct
Answer: liberal
T/F: In the free market, governments set the prices of goods and services
Correct Answer: false
The creation of wealth underlies state power. Economics should serve politics" is
a statement in line with BLANK Correct Answer: Mercantilism
The sources of backlash against free trade agreements are unlikely to include
BLANK Correct Answer: exporting firms
Applying quotas on imports is a policy that would be followed by a BLANK
Correct Answer: protectionist state
What are two types of protectionist policies? Correct Answer: tariffs and non-
tariff barriers
A unilateral method of protecting domestic producers from __________ by
imposing a limit on the maximum volume of allowable imports is known as a
quota. Correct Answer: foreign comp.
, Tax breaks, loans, and guaranteed high prices are examples of what type of
protectionism? Correct Answer: subsides (payments by a gov to a domestic
industry)
Protectionism hurts an economy in which way? Correct Answer: consumers
usually pa higher prices for products
The balance of trade is the value of a state's imports relative to its __________.
Correct Answer: its exports
T/F: Comparative advantage is when states try to produce everything it needs
by itself Correct Answer: •False:
•Autarky
Autarkic states tend to exhibit what type of growth? Correct Answer: low
When states specialize in producing the goods that they produce best and
trading for goods that other states are better at producing, they are operating
according to __________. Correct Answer: the comparative advantage
T/F: When national endowments (i.e. land, labor, and capital) are scarce, prices
of goods from those national endowments are cheap. Correct Answer: false
What are the three types of economic pressure? Correct Answer: - economic
sanctions
- economic warfare
- trade wars
T/F: "Smart" sanctions are when states target individuals and groups over the
entire state Correct Answer: true
100% Correct Answers
The world economy is (BLANK) integrated on a global scale, generating wealth
at a (BLANK) pace Correct Answer: Increasingly, accelerating
A (BLANK) would agree that a government's most useful role is to interfere in
economics only to regulate markets in order to help them function efficiently.
That is, politics should serve the interests of economic efficiency. Correct
Answer: liberal
T/F: In the free market, governments set the prices of goods and services
Correct Answer: false
The creation of wealth underlies state power. Economics should serve politics" is
a statement in line with BLANK Correct Answer: Mercantilism
The sources of backlash against free trade agreements are unlikely to include
BLANK Correct Answer: exporting firms
Applying quotas on imports is a policy that would be followed by a BLANK
Correct Answer: protectionist state
What are two types of protectionist policies? Correct Answer: tariffs and non-
tariff barriers
A unilateral method of protecting domestic producers from __________ by
imposing a limit on the maximum volume of allowable imports is known as a
quota. Correct Answer: foreign comp.
, Tax breaks, loans, and guaranteed high prices are examples of what type of
protectionism? Correct Answer: subsides (payments by a gov to a domestic
industry)
Protectionism hurts an economy in which way? Correct Answer: consumers
usually pa higher prices for products
The balance of trade is the value of a state's imports relative to its __________.
Correct Answer: its exports
T/F: Comparative advantage is when states try to produce everything it needs
by itself Correct Answer: •False:
•Autarky
Autarkic states tend to exhibit what type of growth? Correct Answer: low
When states specialize in producing the goods that they produce best and
trading for goods that other states are better at producing, they are operating
according to __________. Correct Answer: the comparative advantage
T/F: When national endowments (i.e. land, labor, and capital) are scarce, prices
of goods from those national endowments are cheap. Correct Answer: false
What are the three types of economic pressure? Correct Answer: - economic
sanctions
- economic warfare
- trade wars
T/F: "Smart" sanctions are when states target individuals and groups over the
entire state Correct Answer: true
