Posi 2320 final exam

 Q: What is the difference between classical economic theory, Keynesian economic theory, supply-side economics, and monetary economics?

 A:

• Classical Economic Theory: Believes that markets are self-regulating and that government intervention is unnecessary.
  
  

• Keynesian Economic Theory: Advocates for government intervention to manage economic fluctuations, especially during recessions.
  
  

• Supply-Side Economics: Focuses on tax cuts and deregulation to stimulate economic growth by increasing production.
  
  

• Monetary Economics: Emphasizes the role of central banks (like the Federal Reserve) in controlling the money supply and interest rates.
  

: What are some of the main functions of the Federal Reserve

 A: Control the money supply, set interest rates, regulate banks, provide financial services, and stabilize the economy.

 Who is Adam Smith?

A Scottish economist known as the "father of modern economics," who proposed the concept of the "invisible hand" of the market

Who is the current chairman of the Federal Reserve?

Jerome Powell (as of 2025).

Q: What is protectionism? When did the United States follow protectionist policies?

A: Protectionism is the economic policy of restricting imports to protect domestic industries. The U.S. followed protectionist policies, especially during the Great Depression, with the Smoot-Hawley Act (1930).

Q: What was the Smoot-Hawley Act?

A: A law enacted in 1930 that raised tariffs on thousands of imported goods, worsening the Great Depression.

Q: Who is the United States' largest trading partner?

A: China.

Q: What does “comparative advantage” mean?

A: The ability of a country to produce a good at a lower opportunity cost than another country.

Q: In the United States, who benefits from the growth in international trade?

A: Consumers, multinational corporations, and skilled workers in exporting industries.

Q: Who is disadvantaged by the growth in international trade?

A: Unskilled workers and industries facing competition from cheaper foreign labor.

Q: What is the U.S.’s three-pronged trade strategy?

A: Tariffs, trade agreements, and economic diplomacy.

Q: What are the benefits of greater international trade for the United States?

A: Access to more goods, lower prices, economic growth, and innovation.

Q: What are the disadvantages of greater international trade for the United States?

A: Job losses in some sectors, wage suppression, and environmental concerns.

Q: What is the WTO?

A: The World Trade Organization, an international body that regulates trade between nations.

Q: What is NAFTA (USMCA)?

A: North American Free Trade Agreement (replaced by USMCA), a trade agreement between the U.S., Canada, and Mexico to reduce trade barriers.

Q: Is the United States a part of the Trans-Pacific Partnership (TPP)?

A: No, the U.S. withdrew in 2017.

Q: What does the “race-to-the-bottom” mean?

A: Countries lowering labor, environmental, or other standards to attract businesses, often leading to exploitation.

Q: How might someone defend sweatshops?

A: As a means of providing jobs, lifting people out of poverty, and contributing to economic development in developing countries.

Q: Between which two nations does the largest trade imbalance in the world exist?

A: The United States and China.

Q: What are the top three nations in the world in imports and exports by dollar amount?

A: China, the United States, and Germany

Q: What is Thomas Friedman’s ‘golden straitjacket’ theory?

A: The theory that economic globalization forces countries to adopt free-market policies, leading to economic growth but reducing sovereignty.

Q: What are some arguments against the idea that China’s growth will continue unabated?

A: Aging population, environmental issues, debt crisis, and political tensions could hinder continued growth.

Q: What U.S. trade policies helped aid Chinese growth?

A: Trade agreements, allowing China into the WTO, and U.S. corporations outsourcing production.

Q: Which groups favored policies that helped aid Chinese growth?

A: Multinational corporations and businesses seeking to lower production costs.

Q: What is the difference between IR and ir?

A: IR refers to the academic study of International Relations, while ir refers to the actual interactions between states and global actors.

Q: What does "anarchy" mean in terms of IR theory?

A: Anarchy refers to the absence of a central global authority, meaning states must act in their self-interest for survival.

Q: For realists, what is a nation’s foremost goal?

A: National security and the preservation of power.

Q: Why do realists argue that conflict is inevitable in the international system?

A: Because of the inherent competition for power and the lack of a global governing authority.

Q: What is power in international relations?

A: Power is the ability of a state to influence others and achieve its goals through military, economic, and diplomatic means.

Q: What is a bipolar system?

A: A system dominated by two superpowers, such as during the Cold War.

Q: What is an unbalanced multipolar system?

: A system with multiple powers but one significantly stronger than the others, making it prone to conflict.

Q: Which international system is most stable?

A: Bipolar systems tend to be more stable.

Q: What was the Cold War?

A: A period of ideological conflict between the U.S. and the Soviet Union (1947-1991), marked by nuclear arms races, espionage, and proxy wars.

Q: What is MAD?

A: Mutual Assured Destruction; a doctrine where full-scale nuclear war would result in the annihilation of both the attacker and the defender.

Q: What is hegemony?

A: Dominance by one state over others. Global hegemony is difficult due to diverse political, cultural, and economic systems.

Q: Who is Immanuel Kant?

A: A philosopher who believed that peace could be achieved through democracy, international law, and global cooperation.

Q: What are Kant’s three definitive articles for Perpetual Peace?

A: Republican constitutions, a federation of free states, and universal hospitality.

Q: Which U.S. President borrowed Kantian ideas to create the League of Nations?

A: Woodrow Wilson.

Q: How is democracy supposed to make states more peaceful (according to liberals)?

A: Democracies are less likely to go to war with one another, as they share common values, norms, and institutional constraints.

Q: What is an international institution?

A: An organization that facilitates cooperation among states, such as the United Nations or the World Trade Organization.

Q: How do international institutions help states cooperate?

A: They provide a framework for negotiation, reduce uncertainty, and help enforce agreement

Q: How have U.S.-China relations been characterized in terms of foreign policy?

A: Initially liberal (engagement) but shifting towards realism under President Trump, with rising tensions in trade and military rivalry.

Q: What is contained in Articles II, IV, and X of the NPT?

A:

• Article II: Non-nuclear states must not acquire nuclear weapons.
  
  

• Article IV: Promotes the peaceful use of nuclear energy.
  
  

Article X: Allows a state to withdraw from the NPT under certain conditions.

Q: Which international agency monitors NPT?

A: The International Atomic Energy Agency (IAEA).

Q: Which nations had nuclear weapons prior to the NPT?

A: The U.S., Russia, U.K., France, and China.

Q: Which nations have nuclear weapons but never signed the NPT?

A: India, Pakistan, and Israel.

Q: What agreements has North Korea violated in developing nuclear weapons?

A: The Agreed Framework (1994), the Six-Party Talks, and the 2005 Joint Statement.

Q: Who is the leader of North Korea?

A: Kim Jong-un.

Q: Why might Iran seem to be developing nuclear weapons?

A: Suspicion of secret nuclear weapons development, despite Iran’s claims of peaceful intentions for its nuclear program.

Q: Who is the current President of Iran?

A: Ebrahim Raisi.

Q: What is AIPAC?

A: The American Israel Public Affairs Committee, a lobbying group supporting pro-Israel policies in the U.S.

Q: Why might a conflict between Israel and Iran be dangerous for the United States?

A: It could destabilize the Middle East, threaten U.S. allies, and draw the U.S. into military conflict.

Q: What was the Holodomor?

A: A man-made famine in Soviet Ukraine (1932-1933), resulting from Stalin's policies and causing millions of deaths.

Q: How did Vladimir Putin come to power?

A: He became president of Russia in 2000 after Boris Yeltsin's resignation, consolidating power rapidly.

Q: What was the Pereyaslav Agreement?

A: A 1654 treaty that linked Ukraine with Russia under the Cossack Hetmanate.

Q: Why might the Ukrainian population be split?

A: Due to historical, cultural, and geopolitical divides between pro-Western and pro-Russian factions.

Q: What was the Budapest Memorandum?

A: An agreement in which Ukraine gave up its nuclear weapons in exchange for security guarantees from Russia, the U.S., and the U.K.

Q: What was NATO’s Declaration of Bucharest Summit in 2008?

A: A statement that NATO offered membership to Ukraine and Georgia, angering Russia.

Q: Who did Russia invade in 2008?

A: Georgia.

Q: What did Russia do in response to the 2014 Ukrainian coup?

A: Annexed Crimea and supported separatists in Eastern Ukraine

Q: What is considered the most probable reason for Russia’s invasion of Ukraine?

A: Russia’s desire to maintain influence over Ukraine and prevent NATO expansion.

Q: What is AIPAC?
.

A: The American Israel Public Affairs Committee, a lobbying group supporting pro-Israel policies in the U.S

Q: Who is the current President of Iran?

A: Ebrahim Raisi.