INTERNATIONAL POLITICAL ECONOMY
7TH EDITION
CHAPTER 1: INTERNATIONAL POLITICAL ECONOMY
MULTIPLE CHOICE QUESTIONS
1. International Political Economy (IPE) primarily studies
a. the political battle between nation-states.
b. the economic battle between producers and consumers.
c. how the consequences of global economic exchange generate political winners
and losers in national and international arenas.
d. how the consequences of global political change generate new technologies.
e. how the consequences of global economic change generate new political
cultures.
Answer: c
2. The distributive consequences of global economic exchange
a. raises the incomes of all people in developed countries.
b. eliminate political competition in national arenas.
c. eliminate political competition in international arenas.
d. generate political competition in national and international arenas.
e. lowers the income of all people in developing countries.
Answer: d
3 Car and light truck production throughout the world fell sharply in 2020 largely
due to
a. pandemic-related issues in the global semiconductor chip industry.
b. lobbying by workers in American computer firms.
c. oil prices by foreign producers.
d. prices by American auto manufacturers.
e. wages by foreign semiconductor firms.
Answer: c
4. The study of the global economy does NOT usually include the study of
a. the international trade system.
b. the international monetary system.
c. multinational corporations.
d. economic development.
, e. scientific development.
Answer: e
5. In 2020 (before the pandemic) the trade of goods and services across national
borders each year is worth
a. around $15 trillion.
b. around $20 trillion.
c. around $25 trillion.
d. around $30 trillion.
e. around $35 trillion
Answer: c
6. The international monetary system primarily facilitates
a. the international exchange of national currencies.
b. the national exchange of international currencies.
c. the interest rates of national currencies.
d. the international regulation of economic foreign aid.
e. the international regulation of foreign direct investment.
Answer: a
7. Multinational corporations account for
a. 1/4 of the world’s economic production & 1/4 of the world’s trade.
b. 1/4 of the world’s economic production & 1/3 of the world’s trade.
c. 1/2 of the world’s economic production & 1/2 of the world’s trade.
d. 1/2 of the world’s economic production & 3/4 of the world’s trade.
e. 3/4 of the world’s economic production & 1/2 of the world’s trade.
Answer: b
8. Economic development strategies in the post WWII era in developing countries
a. have been largely unsuccessful in the newly industrializing countries of East
Asia.
b. have been largely successful in the developing countries of East Africa.
c. have been largely successful in the newly industrializing countries of East Asia.
d. have been largely successful in all developing countries.
e. have been largely unsuccessful in all developing countries.
Answer: c
9. Welfare consequences about resource allocation decisions
a. determine the level of societal well-being in a country.
, b. influence how income is distributed between nations in the international system.
c. influence how income is distributed between groups within countries.
d. are determined by the national attitudes toward hard work.
e. determine the level of democratic participation in a country.
Answer: a
10. Distributional consequences about resource allocation decisions
a. are determined by the level of societal well-being in a country.
b. determine how prestige is distributed in the international system.
c. influence how income is distributed between groups within countries.
d. are determined by the distribution of national attitudes toward hard work.
e. determine the level of democratic participation in a country.
Answer: a
11. Explanatory studies are primarily oriented toward explaining
a. who make foreign economic policy choices in governments?
b. how governments make foreign economic policy choices.
c. when governments make foreign economic policy choices.
d. where governments make foreign economic policy choices.
e. why governments make foreign economic policy choices.
Answer: e
12. Evaluative studies are NOT oriented toward
a. assessing policy outcomes
b making judgments about policy outcomes
c. proposing alternatives when the judgment made about a particular policy is a
positive one
d. proposing alternatives when the judgment made about a particular policy is a
negative one.
e. assessing policy costs and benefits
Answer: c
13. The idea that the purpose of economic activity was to enrich individuals, not to
enhance a state’s power was most strongly held by the
a. liberalism school of international political economy.
b. conservatism school of international political economy.
c. mercantilist school of international political economy.
d. Marxism school of international political economy.
e. realist school of international political economy.