ch 8 international political economy

inquizitive

what were the effects of covid 19?

correct:

low employment

low GDP

incorrect:

increase in international trade

petroleum market increased

the sector considered to have the most socio-economic resilience is

agriculture

Which of the following are included in a country's balance of payments?

correct:

capital accounts

current accounts

incorrect:

offshore financial

nontariff barriers

The state of Midgard signs a trade agreement with the neighboring state Junon. In this agreement, both agree to provide the other country with the same treatment that they give to their best trading partners. This is an example of ____________.
This concept was at the core of the real-world _____________.

Most Favored Nation (MFN), General Agreement on Tariffs and Trade

1. small loans for individuals or groups to invest in their businesses or themselves

2. a package of reforms recommended or required by Western economic policy makers

3. money given by governments or organizations to individuals with few or no strings attached

4. money sent by foreign workers back to individuals living in the countries from which they came

1. microfinance

2. structural adjustment programs

3. direct cash transfers

4. remittances

1. A government creates a law to regulate environmental waste.

2. A government tries to lower short-term interest rates to boost economic growth.

3. A government balances its budget.

4. A government sues a company for violating antitrust law.

5. A government raises the income tax rate.

1. microeconomic

2. macroeconomic

3. macroeconomic

4. microeconomic

5. macroeconomic

Choose all of the following that are tenets of economic liberalism

correct:
When there are many buyers and sellers, competition will ensure prices will be as low as possible.

Markets should be free from government interference.

incorrect:
The existing economic system supports the owners of wealth at the expense of workers.

The economic well-being of the state should be a top priority.

Which of the following are arguments against the North American Free Trade Agreement (NAFTA) and the United States-Mexico-Canada Agreement (USMCA)?

correct:

The United States has lost manufacturing jobs to Mexico.

NAFTA has not led to a decrease in poverty in Mexico.

incorrect:

North American MNCs are less competitive than they were before NAFTA.

Trade has decreased among the three NAFTA countries.

A weaker domestic currency leads to more imports and fewer exports.

False

What best describes the relationship between mercantilism and protectionism?

Protectionism represents a set of policies that a mercantilist government might follow.

Protectionism led to the development of mercantilism, especially in Asia and Africa.

Protectionism and mercantilism are opposing viewpoints on how governments and economies should interact.

Protectionism is a newer form of Marxism and is therefore a response to mercantilism.

A) Protectionism represents a set of policies that a mercantilist government might follow.

Economic radicalism developed as a direct reaction to the excesses of _____.

economic liberalism