CPO Exam 3 Questions With Correct Answers

Dictator's Dilemma - Answer An authoritarian ruler's repression creates fear, which then breeds uncertainty about how much support the ruler has; in response, the ruler spends more resources than is rational to co-opt the opposition supreme leader - Answer Individual who wields executive power with few formal limits in an authoritarian regime; in the Islamic Republic of Iran, the formal title of the top ruling cleric regime change - Answer The process through which one regime is transformed into another coup d'état - Answer When the military forcibly removes an existing regime and establishes a new one pact - Answer In a transition to democracy, a conscious agreement among the most important political actors in the authoritarian regime and those in civil society to establish a new form of government democratic consolidation - Answer The widespread acceptance of democracy as the permanent form of political activity; all significant political elites and their followers accept democratic rules and are confident everyone else does as well democratic backsliding - Answer A decline in the quality of democracy, including the extent of participation, the rule of law, and vertical and horizontal accountability transition to democracy - Answer A regime change typically involving a negotiated process that removes an authoritarian regime and concludes with a founding election of a new, democratic regime authoritarianization - Answer The creation of an authoritarian regime via the undermining of democratic institutions by elected incumbents; has become more common market economy - Answer An economic system in which individuals and firms exchange goods and services in a largely unfettered manner capitalism - Answer The combination of a market economy with private property rights public goods - Answer Goods or services that cannot or will not be provided via the market because their costs are too high or their benefits are too diffuse (ex: clean water & air) market failure - Answer Phenomenon that occurs when markets fail to perform efficiently or fail to perform according to other widely held social values externality - Answer A cost or benefit of the production process that is not fully included in the price of the final market transaction when the product is sold monopoly - Answer The control of the entire supply of a valued good or service by one economic actor natural monopoly - Answer The control of the entire supply of valued goods or services by one economic actor in a sector of the economy in which competition would raise costs and reduce efficiency keynesian theory - Answer Named for British economist John Maynard Keynes, who argued that governments can manage the business cycles of capitalism via active fiscal policy and monetary policy, including deficit spending when necessary fiscal policy - Answer Government budgetary policy deficit spending - Answer Government spending that is more than what is collected in revenue monetary policy - Answer The amount of money a government prints and puts into circulation and the basic interest rates the government sets varieties of capitalism - Answer School of thought analyzing wealthy market economies that focuses primarily on business firms and how they are governed; divides such economies into