1
International Political Economy Questions with
Answers (100% Correct Answers)
International Political Economy Answer: Two two-way relationship
between International Politics & International Economics
Globalization Answer: The time it takes for goods, people, information,
and money to flow across borders and the cost of moving them are
decreasing; international trade increases relative to domestic trade; and
in which the world is increasingly defined by single markets rather than
by many separate markets
economic determinism Answer: the assumption that political behavior
is driven by economic motivations and political outcomes are
determined by economic power
Laissez Faire economics Answer: belief that economics and businesses
function best when there is no government intervention - basis of free
market economy
© 2025 All rights reserved
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Free market economy Answer: Supply and demand, rather than
government, regulates production and labor. Companies sell
goods/services at highest price consumers are willing to pay
Economic liberalism Answer: Associated with free market and private
ownership of capital assets. Opposes mercantilism and fuedalism
Adam Smith Answer: early advocate for economic liberalism,
introduced in his book. believes that if people are left to their own
economic devices, wealth and prosperity will increase.
David Ricardo Answer: 2nd most influential economic influencer behind
Smith - "theoretical father of classical political economy"
Invisible hand effect Answer: Introduced by Adam Smith - "unintended
social benefits of individual self-interested actions" .. used in reference
to income distribution and production
Free trade Answer: international trade left to its natural course without
tariffs, quotas, or other restrictions.
© 2025 All rights reserved
International Political Economy Questions with
Answers (100% Correct Answers)
International Political Economy Answer: Two two-way relationship
between International Politics & International Economics
Globalization Answer: The time it takes for goods, people, information,
and money to flow across borders and the cost of moving them are
decreasing; international trade increases relative to domestic trade; and
in which the world is increasingly defined by single markets rather than
by many separate markets
economic determinism Answer: the assumption that political behavior
is driven by economic motivations and political outcomes are
determined by economic power
Laissez Faire economics Answer: belief that economics and businesses
function best when there is no government intervention - basis of free
market economy
© 2025 All rights reserved
, 2
Free market economy Answer: Supply and demand, rather than
government, regulates production and labor. Companies sell
goods/services at highest price consumers are willing to pay
Economic liberalism Answer: Associated with free market and private
ownership of capital assets. Opposes mercantilism and fuedalism
Adam Smith Answer: early advocate for economic liberalism,
introduced in his book. believes that if people are left to their own
economic devices, wealth and prosperity will increase.
David Ricardo Answer: 2nd most influential economic influencer behind
Smith - "theoretical father of classical political economy"
Invisible hand effect Answer: Introduced by Adam Smith - "unintended
social benefits of individual self-interested actions" .. used in reference
to income distribution and production
Free trade Answer: international trade left to its natural course without
tariffs, quotas, or other restrictions.
© 2025 All rights reserved
