POSC2601 Final Questions with 100%
Correct Answers
the world economy Correct Answer: increasingly integrated on a global scale,
generating wealth at an accelerated
liberal Correct Answer: a ____ 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
liberal policy prescription Correct Answer: free markets and free trade
free economic market Correct Answer: a system where an "invisible hand" acts
to guide the most efficient patterns of production, exchange, and consumption
free trade Correct Answer: the flow of goods and services across national
boundaries unimpeded by tariffs or other restrictions
supply and demand Correct Answer: determines the prices of goods and
services in a free market
equilibrium price Correct Answer: the best possible price for both buyers and
sellers to meet in the middle
mercantilism Correct Answer: trade and economic policies are manipulated to
build up a monetary surplus that could be used to finance war; the creation of
wealth underlies state power. economics should serve politics
exporting firms Correct Answer: backlash against free trade agreements are
unlikely to include...
, comparative advantage Correct Answer: trade the goods states make
cheaply/efficiently for those goods and services they cannot
tariffs and non-tariff barriers Correct Answer: two types of protectionist policies
tariff Correct Answer: a duty or tax placed on certain types of imports when
they enter a country
non-tariff barrier Correct Answer: any other form of restricting imports besides
the use of tariffs (quotas, subsidies, labor or environmental regulations, etc.)
quota Correct Answer: a unilateral method of protecting domestic producers
from foreign competition by imposing a limit on the maximum volume of
allowable imports
protectionism Correct Answer: when states manipulate international trade to
strengthen one or more domestic industries and shelter them from the world
market
subsidies Correct Answer: payments by a government to a domestic industry
(tax breaks, loans, guaranteed high prices, etc.)
catering to the demands of important domestic industries and interests,
protecting infant industries, protecting interests and industries that are vital to
national security, and define against predatory practices Correct Answer: the
four objectives of protectionism
consumers usually pay higher prices for products Correct Answer: how
protectionism hurts an economy
balance of trade Correct Answer: the value of a state's imports relative to its
exports
autarky Correct Answer: when states try to produce everything it needs by itself
Correct Answers
the world economy Correct Answer: increasingly integrated on a global scale,
generating wealth at an accelerated
liberal Correct Answer: a ____ 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
liberal policy prescription Correct Answer: free markets and free trade
free economic market Correct Answer: a system where an "invisible hand" acts
to guide the most efficient patterns of production, exchange, and consumption
free trade Correct Answer: the flow of goods and services across national
boundaries unimpeded by tariffs or other restrictions
supply and demand Correct Answer: determines the prices of goods and
services in a free market
equilibrium price Correct Answer: the best possible price for both buyers and
sellers to meet in the middle
mercantilism Correct Answer: trade and economic policies are manipulated to
build up a monetary surplus that could be used to finance war; the creation of
wealth underlies state power. economics should serve politics
exporting firms Correct Answer: backlash against free trade agreements are
unlikely to include...
, comparative advantage Correct Answer: trade the goods states make
cheaply/efficiently for those goods and services they cannot
tariffs and non-tariff barriers Correct Answer: two types of protectionist policies
tariff Correct Answer: a duty or tax placed on certain types of imports when
they enter a country
non-tariff barrier Correct Answer: any other form of restricting imports besides
the use of tariffs (quotas, subsidies, labor or environmental regulations, etc.)
quota Correct Answer: a unilateral method of protecting domestic producers
from foreign competition by imposing a limit on the maximum volume of
allowable imports
protectionism Correct Answer: when states manipulate international trade to
strengthen one or more domestic industries and shelter them from the world
market
subsidies Correct Answer: payments by a government to a domestic industry
(tax breaks, loans, guaranteed high prices, etc.)
catering to the demands of important domestic industries and interests,
protecting infant industries, protecting interests and industries that are vital to
national security, and define against predatory practices Correct Answer: the
four objectives of protectionism
consumers usually pay higher prices for products Correct Answer: how
protectionism hurts an economy
balance of trade Correct Answer: the value of a state's imports relative to its
exports
autarky Correct Answer: when states try to produce everything it needs by itself
