POLS 3313 FINAL QUESTION BANK

Which of the following does the World Bank not do?

set exchange rates

About what percentage of the U.S. budget goes to foreign aid?

1%

Seigniorage refers to:

the profit a state makes from minting private metal

Drury, Olson, and Van Belle find that having an alliance with the U.S.:

Makes a country more likely to receive aid, but does not affect the amount

Demographers predict that by the year 2100, 40% of the world's population will be:

African

Which of the following would be most effective foreign aid?

A grant earmarked for the construction of a new school

What has happened to extreme poverty in the last thirty years?

It has fallen dramatically

Why would a sovereign introduce inconvertible currency?

to prevent a run on banks in times of crisis

The Smoot-Hawley Tariff of 1930 was helped along by what phenomenon?

logrolling

What was a problem that we identified with the Kyoto Protocol in class?

It does not bind important actors

What group would most favor a weak currency?

Exporters

Which of the following is not true of a trade agreement presented to Congress using the president's Trade Promotion Authority?

it requires a supermajority vote

Which of the following is not one of the disadvantages of a tariff?

Lost jobs in the protected sector

Which country had nuclear and democracy sanctions suspended in return for cooperation in the War on Terror?

Pakistan

Which of the following would be in a country's interest to produce if labor was abundant and capital was scarce?

Small consumer goods

Against which of the following types of weapons would an arms embargo be most effective?

Nuclear weapons

What is a black knight?

A state that trades with a state that is under sanctions

Why does the United States have such a large share of voting power in the IMF?

It is the largest donor state

Suppose I am an investor. Which of the following would be the least risky investment?

Government bonds in a developed country

What is a disadvantage to using commodity-backed money?

It inhibits the use of macroeconomic tools

Which of the following is an example of customary international law?

Diplomatic immunity

Which country would be most likely to be successful in imposing sanctions on a trading partner?

France

Which president took the U.S. off of the gold standard?

Richard Nixon

Which of the following types of money cannot be revalued?

Commodity money

What is an exchange rate?

the price of a national currency relative to other national currencies

What does a tariff usually do to commodity prices in the country that imposes it?

it raises them

How is international law enforced?

Through decentralized cooperation of member states

Which of the following served as the world's reserve currency during the Bretton Woods system?

The U.S. Dollar

Which of the following is not a component of structural adjustment?

Universal Healthcare

A constitutive norm tells us:

which actors matter

When the United States provides Most Favored Nation status to another country this means that:

the United States provides the same trade concessions it would to any other state

According to Robert Pape, sanctions are successful in altering behavior:

almost never

As of today, the U.S. currency is:

a type of fiat currency

Which of the following is not an example of a regional trade agreement?

NATO

Which type of politician would be most likely favor a free trade policy?

The President

The majority of the world's population lives in:

poor countries

Which of the following scenarios has the most positive effect on State A's aggregate economic welfare?

Neither State A nor State B imposes a tariff

Suppose I am an investor. Which of the following would be the investment with the greatest possible return?

Corporate bonds in a developed country

Import substitution industrialization involves:

the institution of trade barriers on manufactured goods

What is the name of the institution that investigates and prosecutes war crimes?

International Criminal Court

What happens when a state raises interest rates?

The value of currency appreciates

Which of the following is a necessary condition for international law to bind a state?

Consent by that state

All of these are risks in relying on primary commodity exports except:

Primary commodities are labor intensive

Which was not one of the consequences of the end of the Bretton Woods system?

Currency values became much more stable

According to the table below, which country should focus only on producing wine and should trade for any needed cloth?

Portugal

Sanctions have been likened by some to an economic form of:

terrorism

I'm going to travel to Europe next month. Which situation would be most favorable for me in the meantime?

The dollar appreciates against the Euro

A procedural norm tells us:

how decisions are made

What organization makes a point of certifying that a country is making progress toward economic stability?

The International Monetary Fund

Export-oriented industrialization involves:

the targeted development of industry for export purposes

Why might both Pape and Hoffbauer, Schott, and Elliott be underestimating sanction success?

They only look at imposed sanctions

According to the table below, which country should focus only7 on making cloth and trading for any needed wine?

England

Which of the following groups would be most likely have economic incentives to favor restrictions on immigration?

The American Federation of Labor and Congress of Industrial Organizations (AFLCIO)

Which of the following states has not ratified the Kyoto Protocol?

The United States

Which of the following is not one of the factors of production according to the Heckscher-Ohlin Model?

Leadership

What reason does Randall Stone give for the ineffectiveness of IMF policies in Africa?

Powerful states allow their allies to avoid punishments

What explains the levels of protectionism that we tend to see around the world?

The benefits of protection are concentrated, while the drawbacks are dispersed

Continually bailing out a country can cause a:

moral hazard problem

Which is not an advantage of a cryptocurrency like Bitcoin?

Its value is more stable than traditional currency

Investors who want to maximize their risk-reward tradeoff often turn to:

emerging markets like Turkey

Which of the following is an example of commodity money?

silver coin in ancient rome

Which of the following would be considered one of the Least-Developed Countries?

Malawi

If a state embraces autarky, that necessarily means that it:

does not trade with other states

Jelly Belly building a new factory in Thailand is an example of:

foreign direct investment

A regulative norm tells us:

which behaviors are appropriate

The Nuclear Taboo is an example of:

an international norm

Which of the following is not a criticism of the IMF?

Voting shares of small states are too large

How did the President of the United States maintain the value of the dollar after removing it from the gold standard?

He asked OPEC to price oil in dollars

What does Robert Pape claim causes Hoffbauer, Schott, and Elliott to overestimate the average success of economic sanctions?

The successful cases often involve a use of military force

According to the table below, which country has an absolute advantage in making cloth?

Portugal

Which of the following would be most likely to support protectionist trade policies?

A U.S. steelworker

What does a subsidy to producers usually do to commodity prices in the country that imposes it?

It lowers them

How have regional trade agreements changed between the 1960s and today?

They are now much more common

What happens when a state imposes a tariff or subsidy?

Some of the surplus is redistributed from consumers to producers

Which of the following is not a type of smart sanction?

Bans on all imports and exports

According to the table below, which country has an absolute advantage in producing wine?

Portugal

Which institution claims universal jurisdiction for cases of war crimes?

The Kuala Lumpur War Crimes Commission

Birdsall et al. discuss all of these as possible ways of helping poor countries except:

Opening up borders for immigration

Kevin Baugh is the president of which of the following republics?

Molossia

What do we know about sugar prices in the United States?

They have been artificially high since the 1930s

What actually prompted President Bush to end steel tariffs in December 2003?

The EU threatened strategic retaliation

According to the Ricardo-Viner model, steelworkers and steel plant owners might both push for trade protection if:

steel is an import-competing sector

According to Hufbauer, Schott, and Elliott, sanctions are successful in altering behavior:

about 1/3 of time

The price of which commodity export is likely to be most volatile?

Lumber

Which of the following is not a feature of a stable economic system?

Affordability

What is foreign direct investment?

An investment in which a company maintains control of its assets in another country.

The most autarkic state in the world is:

North Korea

What is concessional finance?

Loans at low or zero interest rates

Which of the following countries defies the conventional connection between political and economic freedom?

Singapore

What is sovereign lending?

When governments borrow money from private financial institutions

What is the global threshold for extreme poverty, as of 2022?

$2.15 per day

Which of the following is most liquid?

A dollar

What effect did the COVID-19 outbreak have on global poverty?

It caused it to increase

Which of the following institutions emerged from the GATT?

The WTO

Which state recently experienced a currency crisis that led to hyperinflation?

Zimbabwe

Today, the three remaining city-states in existence are Monaco, Vatican City, and:

Singapore

According to Holtermann, why does poverty lead to civil war?

People can do better fighting than working

During the nineteenth century, why did countries move toward the gold standard?

more gold discovered

What type of country would be the strongest supporter of adopting the euro?

A small country with a very liberal trade policy

In general, hard international law:

Includes provisions to delegate to third parties