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JAI SHREE RAM

NARAYAN CHANGDER
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 PRACTICE BOOK» NOT FOR SALE
Contents

1 POLITICAL ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 POLITICAL ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
 1. POLITICAL ECONOMY

NARAYAN CHANGDER
1.1 POLITICAL ECONOMY
1. Which global financial institution is respon- B. By focusing only on local supply chains
sible for providing financial assistance to C. By investing in foreign markets, creat-
developing countries? ing jobs, and facilitating the exchange of
A. United Nations goods and services across borders
B. World Bank D. By hindering the exchange of goods
C. European Central Bank and services across borders
D. International Monetary Fund (IMF) 5. Do changes in food prices also create?
2. What is an example of a WTO agreement? A. Winers and losers among the poor.
A. European Union (EU) B. Increase in demand
B. North American Free Trade Agreement C. Increase in supply
(NAFTA)
D. Equilibrium
C. Gulf Cooperation Council (GCC)
D. Trade-Related Investment Measures 6. What does spatialization refer to in the
(TRIMS) context of political economy?
A. Overcoming the constraints of geo-
3. According to research, the estimate infla-
graphical space with mass media and
tion per year is 3-5%.
communication technologies
A. True
B. The process of creating social rela-
B. False tions organized around social class, gen-
der, and race
4. What role do multinationals play in pro-
moting ethical business practices in the C. The process of transforming things val-
global economy? ued for their use into marketable products
A. By promoting fair trade and ethical D. The study of control and survival in so-
business practices cial life

1. D 2. D 3. A 4. A 5. A 6. A
1.1 POLITICAL ECONOMY 3

7. What was the main focus of the NEP’s poli- 12. In a market economy, if demand for a prod-
cies and programs? uct exceeds supply, prices will rise, signal-
ing to producers to produce more.

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A. Privatizing government-owned enter-
prises A. True
B. Encouraging foreign investment B. False
C. Promoting equality for all ethnic 13. According to the strategic trade policy ar-
groups gument:
D. Serving exclusively the Bumiputera A. government intervention is not re-
quired cause firm can borrow money from
8. According to the argument, govern- the capital markets to finance the re-
ments should temporarilysupport new in- quiredinvestments.
dustries until they have grown strong
enough to meet international competition. B. selling goods in a foreign market at be-
low their fair price is legally and ethically
A. retaliatory action justified.
B. human rights C. government support can help domes-
C. infant industry tic firms overcome the first-mover advan-
tages enjoyed by foreign competitors
D. anti-dumping
D. a government should use subsidies to
9. A village has been badly flooded. Govern- support promising firms
ment has sent relief to the village. The
villagers will share the relief according to 14. What does the UN Peacekeeping involve?
their needs.This is an example of: A. Periodic use of member-state troops
A. collectivism to help resolve conflicts

B. individualism B. Prohibiting the export of missiles and

related technologies
10. The WTO argues that removing tariff bar- C. Eliminating all chemical weapons by
riers and subsidies in theagricultural sector 2007
could:
D. Hearing cases on genocide, war
A. protect agriculture farmers in devel- crimes, and crimes against humanity
oped nations
15. Collectivism emphasize
B. llower the overall level of agricultural
trade. A. individual goals
C. lower prices to consumers B. collective goals

D. restrict global economic growth C. individual freedom

D. private ownership
11. A self-imposed limitation on the number of
products shipped to a particular country. 16. What is the origin of the creation of the
Ejidos in Mexico?
A. Voluntary import restraint
A. The governmentredistributed the land
B. Voluntary export restraint
and gave it to those who needed it.
C. Involuntary import restraint B. The private company redistributed the
D. Involuntary export restraint land and gave it to those who needed it.

7. D 8. C 9. A 10. C 11. B 12. A 13. C 14. A 15. B 16. A

1.1 POLITICAL ECONOMY 4

C. The Church redistributed the land and B. Not really paying attention to the en-
gave it to those who needed it. vironment, the ecosystem is becoming
D. The private company sold the land to more and more seriously polluted, affect-
the peasants. ing future generations and the future of
the country.
17. Voluntary export restraint is a variant on
C. Protecting the poor and uneducated
the local content requirement.
population means nurturing and ade-
A. True quately maintaining the useful human re-

NARAYAN CHANGDER
B. False sources of society. At the same time, the
rich group needs to be encouraged to get
18. The GATT was a multilateral agreement rich legitimately.
whose objective is to liberalize trade.
D. Socially, the gap between rich and
A. True poor is increasing, the quality of educa-
B. False tion, health care and many other public
services are still limited, and social evils
19. Market economic institutions do not in- are increasing.
clude:
A. The rules of economic behavior take 22. Constitutional Monarchy
place in the market, the parties participat- A. A country where there is a King or
ing in the market as market subjects. Queen
B. How rules are implemented to achieve
B. A country where there is a King or
the goals or outcomes desired by market
Queen as well as an elected group of lead-
participants
ers
C. Markets-where goods are traded and
C. A country where the King/Queen is the
exchanged based on legal requirements
head of the state, but an elected group of
and regulations.
people actually runs the country
D. Buying and selling needs
D. A country where there is a constitution
20. What is inflation?
23. Abstract ideas about what a society be-
A. The buying of a lot of goods that have
lieves to be good, right and desirable, are
a small value
B. The prices of goods decreasing and A. values
value of money increasing B. economics
C. The prices of goods in increasing and C. politics
the value of goods lowering
D. technology
D. Buying at lot of goods that have large
value 24. government is exercised either directly
or through elected representatives.
21. To realize the view that growth must go
hand in hand with social justice, what basic A. Totalitarianism
functions must the State effectively per-
B. Democratic
form?
C. Communist
A. Ignore and neglect acts of corruption,
waste, and illegal profiteering. D. Individualism

17. B 18. A 19. D 20. C 21. C 22. C 23. A 24. B

1.1 POLITICAL ECONOMY 5

25. What type of government is all power held A. Advantages include increased inflation
by a single person or small group? and disadvantages include decreased sta-
bility in international trade

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B. Advantages include potential for spec-
ulative attacks and disadvantages include
stability in international trade
C. Advantages include loss of monetary
policy independence and disadvantages
include increased stability in international
trade
D. Advantages include stability in interna-
tional trade and investment, while disad-
vantages include loss of monetary policy
independence and potential for specula-
tive attacks.
A. monarchy
29. Which decade was considered less press-
B. authoritarian government ing for security issues in Europe and the
C. democracy US?
D. none of above A. The 1990s
B. The 1980s
26. Which of these factors significantly im-
pacts the exchange rate in IPE? C. The 1970s
A. environmental regulation D. The 1960s
B. cultural values 30. What were the twin thrusts of the NEP’s
C. inflation rates policy?

D. military expenditures A. Increasing government control over

the media
27. What are the key factors that influence ex- B. Poverty eradication and economic re-
change rate movements in the foreign ex- structuring
change market?
C. Promoting foreign investment and ex-
A. Social media trends, celebrity endorse- port orientation
ments, and fashion industry
D. Privatization and industrialization
B. Weather patterns, agricultural produc-
tion, and technological advancements 31. Free trade as a government policy was
first officially embraced by Great Britain
C. Interest rates, inflation, political sta-
in 1846, when the British parliament re-
bility, economic performance, and market
pealed the Smoot-Hawley Act.
speculation
A. True
D. Currency color, design, and material
used for printing B. False

28. What are the advantages and disadvan- 32. What are the three main theories in IPE?
tages of a fixed exchange rate regime? A. Realism, Liberalism, Nationalism

25. B 26. C 27. C 28. D 29. A 30. B 31. B 32. C

1.1 POLITICAL ECONOMY 6

B. Neoliberalism, Critical theory, Struc- 37. In what year did Mexico enter the the
turalism the North American Free Trade Agreement
C. Nationalism, Liberalism, Structuralism (NAFTA)?
D. Idealism, Realism, Nationalism A. 1986

33. Which of the following are political argu- B. 1994

ments for government intervention?I. Pro- C. 2018
tection of jobs and industries.II. Protection
D. 2022

NARAYAN CHANGDER
of consumers from harmful products.III.
Protection of emerging industries from in- 38. What is the definition of import quota?
ternational competition.IV. Protection of
human rights. A. Taxes on foreign goods imported.
A. I and II B. Restrictions on the amount of a partic-
ular foreign good that may enter the coun-
B. I, II and III
try.
C. I, II and IV
C. When the economy is declining and
D. I, II, III and IV less is being produced.
34. I am expected to check my email and Can- D. Goods and services provided to citi-
vas zens.
A. When I can
39. The main challenge to the international
B. Every single day
trade system posed by the BRICS countries
C. Every week is:
D. When I have access to it A. Decreased global trade
35. What are the potential impacts of multina- B. Isolationist policies
tional corporations on local economies?
C. Shift in power and influence
A. Creating job opportunities, stimulating
economic growth, and transferring tech- D. Increased trade barriers
nology and knowledge
40. Name one major global financial institution
B. Increasing poverty and income in- that focuses on providing development as-
equality sistance and poverty reduction.
C. Exploiting natural resources and caus- A. Goldman Sachs
ing environmental degradation
B. International Monetary Fund
D. Promoting corruption and unethical
business practices C. JPMorgan Chase

36. A political and moral philosophy based D. World Bank

on liberty, consent of the governed, and
41. go “hand in hand.”
equality before the law
A. communism A. Anarchy and individualism

B. mercantilism B. Totalitarianism and democracy

C. liberalism C. Democracy and individualism
D. political economy D. Collectivism and individualism

33. C 34. B 35. A 36. C 37. B 38. B 39. C 40. D 41. C

1.1 POLITICAL ECONOMY 7

42. Under the U.S leadership, it was estab- B. Commodification

lished in 1947.
C. Globalization

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A. Trade-Related Aspects of Intellectual
D. Structuration
property Rights
B. General Agreement on Trade and Ser- 47. Political system assessed according to di-
vices mensions of
C. World Trade Organization A. collectivism
D. General Agreement on Tariffs and B. individualism
Trade
C. democratic
43. What does international political economy
D. totalitarian
(IPE) study?
A. Questions of war and peace 48. What are the challenges and risks associ-
B. The study of the politics of trade, ated with global supply chains in the con-
monetary, and other economic relations text of international political economy?
among nations A. Decrease in geopolitical tensions, sta-
C. The types of actions that states take ble currency exchange rates, increase in
toward each other through time regulatory barriers, and trade liberaliza-
tion
D. Distinct spheres of international ac-
tivity within which policy makers of vari- B. Technological advancements, labor
ous states face conflicts and sometimes shortages, environmental regulations,
achieve cooperation and stable trade agreements

44. We can have economics without politics. C. Decrease in transportation costs, in-
crease in market access, improved sup-
A. True ply chain visibility, and enhanced risk man-
B. False agement

45. Legal systems refers to D. Geopolitical tensions, trade barriers,

currency fluctuations, and regulatory
A. the rule of man changes
B. the rules that regulate behavior along
with the processes by which the laws are 49. Explain the concept of ‘conditionality’ in
enforced and through which redress for the context of global financial institutions.
grievances is obtained A. The process of making financial deci-
C. is the set of structures and processes sions based on certain conditions
that guides the allocation of scarce re-
B. Terms and conditions imposed on bor-
sources and shapes the conduct of busi-
rowing countries in exchange for financial
ness activities in a nation
assistance
D. the system of government in a nation
C. The requirement for global financial in-
46. What is the process of transforming things stitutions to meet certain criteria for fund-
valued for their use into marketable prod- ing
ucts called? D. The practice of providing financial aid
A. Spatialization without any strings attached

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1.1 POLITICAL ECONOMY 8

50. What are some examples of political influ- A. Stan is rich and Bob is poor. They re-
ence exerted by multinationals? ceive the same amount of utility from ev-
ery dollar made.
A. Lobbying, campaign contributions,
forming alliances B. Stan is rich and Bob is poor. Stan re-
ceives more utility from an extra dollar of
B. Donating to charity
income than Bob.
C. Sponsoring educational programs C. Stan is rich and Bob is poor. Bob re-
D. Boycotting products ceives more utility from an extra dollar of

NARAYAN CHANGDER
income than Stan.
51. What are the challenge and opportunities
D. none of above
for the G 20?
A. Energy Security 56. The European Union
A. can do nothing unless all of its member
B. Regionalism
states agree
C. Power
B. is under the complete control of un-
D. none of above elected bureaucrats
C. requires member states to “pool”
52. US President Donald Trump’s ‘America
sovereignty in a number of policy areas
First’ policy is an example of:
D. has already developed all of the key
A. Liberalism features of a centralized, unitary state
B. Economic nationalism
57. What is the definition of regionalism?
C. Neo-Marxism
A. refers to a branch of political science
D. Neo-liberalism that examines the influence of foreign poli-
cies on domestic economies
53. the buying and selling of government secu-
B. refers to development of political and
rities (bonds) to alter the supply of money
economic systems based on loyalty to dis-
A. Free market operations tinct geographic regions
B. Open market operations C. Refers to the interdisciplinary field of
study that explores the interaction be-
C. Policy market operations
tween politics and economics at the inter-
D. none of above national level

54. Which of the following philosophies can be D. refers to the study of international
traced back to the ancient Greek philoso- relations and diplomatic negotiations be-
pher Aristotle? tween different nations

A. Socialism 58. An example of an industry that has the po-

tential to give rise to a natural monopoly
B. Individualism
is
C. Collectivism A. Electricity
D. Anarchism B. Steel Processing
55. What situation best fits the theory of di- C. Food
minishing marginal utility? D. Property

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1.1 POLITICAL ECONOMY 9

59. What are some of the positive impacts of

multinationals on host countries?

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A. Political instability, increased income
inequality, and reduced access to re-
sources
B. Job creation, technology transfer, and
economic growth
C. Environmental degradation, exploita-
tion of local labor, and increased poverty A. constitutional monarchy
D. Cultural homogenization, decreased B. democracy
competition, and reduced innovation C. communist society
60. What does international security focus on? D. authoritarian government
A. Questions of war and peace 63. How do international organizations moni-
B. The study of the politics of trade, tor and regulate the activities of multina-
monetary, and other economic relations tionals?
among nations A. By offering tax breaks and incentives
C. The types of actions that states take to encourage compliance
toward each other through time B. By relying on self-reporting and trust-
D. Distinct spheres of international ac- ing the companies to regulate themselves
tivity within which policy makers of vari- C. Through various mechanisms such as
ous states face conflicts and sometimes setting international standards, conduct-
achieve cooperation ing inspections, and imposing sanctions.
61. Explain the concept of offshoring in the D. By ignoring their activities and focus-
context of global supply chains and its im- ing on domestic companies instead
pact on international political economy. 64. Production is determined by the interac-
A. Offshoring is the process of moving tion of supply and demand.This refers to
business operations to a different planet A. market economies
for cost savings.
B. command economies
B. Offshoring refers to the practice of out-
sourcing work to a neighboring country C. flexible economies
for cultural exchange. D. mixed economies
C. Offshoring is the act of transferring 65. In which areas do most of the world’s poor
business activities to a remote island for reside?
environmental sustainability.
D. Offshoring involves relocating busi-
ness processes to another country to take
advantage of economic benefits.

62. Since our school elects students to repre-

sent the entire student body it functions
as a A. Third world rural area

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1.1 POLITICAL ECONOMY 10

B. Third world urban area 69. Is the Monetary or Fiscal policy set
through laws?
C. First world urban area
A. Monetary
D. First world rural area
B. Fiscal
66. Which is not one of the reasons for per-
fecting socialist-oriented market economic 70. Which is not one of the 3 components of
institutions? Human Development Index (HDI)?

NARAYAN CHANGDER
A. The institutional system is still incom- A. life expectancy
plete B. education
B. Because the socialist-oriented market C. standard of living
economic institutions are still not synchro-
D. technology
nized
C. The institutional system is still ineffec- 71. The hyperglobalist view of globalisation
tive, ineffective, and lacks sufficient mar- is:
ket elements and market types A. There is nothing new about high levels
D. The government wants to participate of international trade and cross-border
and integrate into global trade capital flows.
B. Globalisation has been used as an ide-
67. What is the title of Box 2.2 located in
ological device by politicians.
Chapter 2 of the book?
C. National borders and states have be-
A. Bernie Sander’s economic platform come irrelevant in a global order domi-
B. Hillary Clinton’s Healthcare Platform nated by transnational forces.
C. President Bush’s Crime Platform D. Globalisation is a myth to justify the
free market capitalist system.
D. Senator Barack Obama’s Crime Plat-
form 72. What were some of the objectives of
Obama’s multilateral outlook and security
68. International cooperation should address agenda?
different environmental challenges, such
as: A. Working more positively with all US al-
lies and potential partners
B. Decreasing the number of strategic nu-
clear weapons
C. Continuing the war against terrorism
at reduced costs
D. All of the above
A. Climate Change and Natural resources
73. A dictatorship is
scarcity.
A. an country where the leaders are dic-
B. Food scarcity
tators
C. Shortage of foreign exchange
B. a country where the leaders are
D. International prices distortion. elected by the people

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1.1 POLITICAL ECONOMY 11

C. a country where the leader gets into B. False

power through force
77. Evaluate the role of technology in trans-

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D. a country where the leader often gets forming global supply chains and its impli-
into power by force and then makes all the cations for international political economy.
rule themselves
A. Global supply chains have remained
74. When the government has the control the same despite technological advance-
of public goods in the country but pri- ments
vate businesses and democracy are still al- B. Technology has only made global sup-
lowed. ply chains more inefficient and costly
A. communism C. Technology has transformed global
B. socialism supply chains by enabling automation,
C. mercantilism data analytics, and digital communication,
leading to implications for international
D. capitalism political economy.
75. What is cultural homogenization and how D. Technology has had no impact on
does it manifest in the process of global- global supply chains and international po-
ization? litical economy
A. Cultural homogenization is the pro- 78. what is GPD?
cess of cultures becoming more diverse,
and it manifests in globalization through A. how long it takes a countrie to get a
the preservation of traditional values and certain amount of money
practices. B. the total money value the goverment
B. Cultural homogenization is the process needs to pay in a countries
of cultures becoming more similar to one C. the total market value of the goods and
another, and it manifests in globalization services in an economy
through the spread of Western cultural D. none of above
values, consumer products, and media.
C. Cultural homogenization is the pro- 79. Passed in 1930, this U.S law erected a
cess of cultures becoming more segre- wall of tariff barriers against imports.
gated, and it manifests in globalization A. Payne-Aldrich Tariff Act
through the promotion of multiculturalism B. McKinley Tariff Act
and diversity.
C. Smoot-Hawley Tariff Act
D. Cultural homogenization is the process
of cultures becoming more isolated, and D. None of the above
it manifests in globalization through the 80. Consider the following statements:I. Eco-
restriction of international trade and com- nomic arguments for intervention are con-
munication. cerned with protecting the interests of pro-
76. A voluntary export restraint (VER) is a ducers.II. Political arguments for interven-
quota on trade imposed by the importing tion are concerned with protecting the in-
country, typically at the request of the ex- terests of both producers and consumers.
porting country’s government. A. Statements I and II are correct.
A. True B. Statements I and II are incorrect.

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1.1 POLITICAL ECONOMY 12

C. Only Statement I is correct. C. Price Mechanism

D. Only Statement II is correct. D. Natural Monopoly

81. What are some of the potential negative 85. In , production is determined by the in-
impacts of multinational corporations on teraction of supply and demand.
local economies? A. market economies
A. Creating job opportunities, stimulating B. command economies
economic growth, and transferring tech-

NARAYAN CHANGDER
nology and knowledge C. mixed economies
B. Increasing poverty and income in- D. soft economies
equality
86. Liberals believe that:
C. Exploiting natural resources and caus-
A. Relative and absolute gains are
ing environmental degradation
equally important
D. Promoting corruption and unethical
B. Relative gains are more important
business practices
than absolute gains
82. The following is part of a political parties C. Absolute gains are more important
platform from 2008. “Planks called than relative gains
for the United States to assume a leader-
D. Discussion or relative and absolute
ship role in the fight against global warm-
gains is unnecessary
ing, amending NAFTA (North American
Free Trade Agreement) to reflect concerns 87. Where private enterprises are allowed to
about labor and the environment, and a flourish with little to no regulation by the
call for more service through an expansion government.
of the AmeriCorps and Peace Corps pro-
A. capitalism
grams” Source:Library of Congress Which
political party is this likely from? B. communism
A. Republican Party C. socialism
B. Libertarian Party D. mercantilism
C. Democratic Party 88. Which is NOT an example of a public good?
D. Freedom Party A. police
83. What is level Analysis in IPE? B. military
A. International Collaboration C. schools
B. Political studies D. malls
C. International Economy 89. Is wealth necessary for happiness?
D. none of above A. Yes, wealth is essential for happiness
84. The solution taken by the government to B. No, wealth is not necessary for happi-
overcome the problem of privatization of ness
public goods is C. Wealth has no impact on happiness
A. Contracting out D. Happiness depends on the individual’s
B. Hold-Out Problem perspective

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1.1 POLITICAL ECONOMY 13

90. What is the main difference between fixed 93. What type of political system was Yertle’s
and floating exchange rate regimes? kingdom?

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A. The main difference is that fixed ex-
change rate regime is based on supply
and demand, while floating exchange rate
regime is based on government interven-
tion.
B. The main difference is that fixed ex-
change rate regime is more flexible, while
floating exchange rate regime is more sta-
ble. A. democracy
C. The main difference is that in a fixed B. constitutional monarchy
exchange rate regime, the government or C. authoritarian government
central bank sets the exchange rate, while
in a floating exchange rate regime, the D. none of above
exchange rate is determined by market
forces. 94. What is the degree in which individuals
and organizations can freely own and rule
D. The main difference is that fixed ex- property called?
change rate regime is used in developed
countries, while floating exchange rate A. Economic Equality
regime is used in developing countries. B. Economic Freedom
91. How does the refugee crisis impact the po- C. Political Economy
litical economy of host countries? D. Market
A. It has no impact on the political econ-
omy 95. How does dominance solve collective
goods problems?
B. It puts pressure on public services, in-
creases competition for jobs, and poten- A. By imposing solutions hierarchically
tially strains social cohesion. B. By responding in kind to another’s ac-
C. It reduces competition for jobs tions
D. It strengthens social cohesion C. By changing participants’ preferences
based on their shared sense of belonging
92. Communism is to a community
A. a system of government where com-
D. By creating distinct spheres of interna-
mies live
tional activity
B. a system of government where one
leader rules over the people 96. According to the 1986 Uruguay Round, the
C. a system of government where there implement the GATT agreement.
is only one party and the State owns ev- A. World Trade Organization
erything
B. International Monetary Fund
D. a system of government where the
C. United Nations
people chose the political party they like
the best D. World Bank

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1.1 POLITICAL ECONOMY 14

97. What event led to a sharp recession in B. Right-wing totalitarianism

Malaysia in 1985 and 1986? C. Democratic totalitarianism
A. The collapse of the stock market D. Theocratic totalitarianism
B. The Asian Financial Crisis
101. What are the current issues in the United
C. A decline in government spending Kingdom discussed in the text?
D. A decrease in foreign investment
A. Healthcare reform

NARAYAN CHANGDER
98. What is the field of study of International B. Immigration policies
Political Economy and the Environment?
C. Education funding
D. Scotland’s Bid for Independence and
Brexit

102. Basic Human rights are:

A. respected worldwide.
B. still not respected in many nations.
C. respected in only OECD countries.
A. International attention to the D. only respected in North America
environment-economy link.
B. Sustainable development goals 2030 103. The use of a bilateral, item-by-item ap-
proach best characterizes which period of
C. Sustainable development goals 2030 trade negotiations?
and poverty
A. the Kennedy Round
D. International attention to the
environment-economy link poverty. B. the Tokyo Round
C. Reciprocal Trade Agreements negotia-
99. How does identity solve collective goods tions
problems?
D. early GATT negotiations after World
A. By imposing solutions hierarchically War II
B. By responding in kind to another’s ac-
tions 104. What is the contribution of the Economy
of Yucatan to the GDP of Mexico?
C. By changing participants’ preferences
based on their shared sense of belonging A. 1.5%
to a community B. 10.5%
D. By creating distinct spheres of interna- C. 20.5%
tional activity
D. 30.5%
100. Which system of government generally
permits some individual economic freedom 105. What weakened the security order dur-
but restricts individual political freedom, ing the Cold War?
frequently on the grounds that it would A. The defeats of the US in Vietnam and
lead to the rise of communism? the Soviet Union in Afghanistan
A. Tribal totalitarianism B. The collapse of the Soviet Union

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1.1 POLITICAL ECONOMY 15

C. The tensions between the US and So- B. Democratic

viet Union C. Communist

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D. The recovery of Western Europe and D. Individualism
Japan
111. How to realize economic interests in the
106. How do multinationals influence the main interest relationships of the socialist-
global supply chain? oriented market economy in Vietnam?
A. By reducing their market power and re- A. Realize economic benefits according
sources to market economic principles
B. By promoting fair trade and ethical B. Realize economic benefits according
business practices to state policies and the role of social or-
C. By focusing only on local supply chains ganizations
D. Through their extensive networks, re- C. Realize economic benefits according
sources, and market power. to state regulations for the economy
D. both a and b
107. What is NOT an example of a social ex-
penditure? 112. What is NOT example of a Social Expen-
A. welfare money diture
B. food stamps A. Housing
C. childcare vouchers B. Healthcare
D. electric car production to help the en- C. Food Stamps
vironment D. Free Money
108. What will be critical issues in the coming 113. The transformational view of globalisa-
years for the United Kingdom? tion is:
A. The UK’s future identity A. Believes that much of the economic
B. Expanding the military presence activity still takes place within national
boundaries
C. Addressing climate change
B. Acknowledges the existence of global-
D. Promoting international tourism
isation but does not agree with the total-
109. A type of democracy where people elect ising nature of globalisation
representatives. Those representatives C. Believes that national economies are
make some decisions. less significant
A. Direct democracy D. Believes that globalisation is a myth to
B. Indirect (representative) democracy justify the free market capitalist system
C. Autocracy 114. This political system seems to balance
D. Monarchy economic freedom and equality.
A. Liberalism
110. government exercises absolute con-
trol over all spheres of human life and pro- B. Mercantilism
hibits opposing political parties. C. Communism
A. Totalitarianism D. Social Democracy

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1.1 POLITICAL ECONOMY 16

115. A king or a queen is also known as a 120. What country is communist

A. US
B. Cuba
C. Australia
D. Russia

NARAYAN CHANGDER
121. Modern socialism has been popularized
largely through the work of
A. president
B. tyrant A. Adam Smith
C. monarch B. Karl Marx
D. oligarch C. David Hume
116. Economic Stability means that the state D. Thomas Hobbes
is preventing economic fluctuations.
122. Certain sectors of the economy are left
A. True
to private ownership and free market
B. False mechanisms while other sectors have sig-
nificant state ownership and government
117. Export tariffs are far less common than
planning.This refers to
import tariffs.
A. True A. market economies

B. False B. command economies

118. Which major powers focus on traditional C. flexible economies

security interests that require being pre- D. mixed economies
pared to fight war and protect national
borders? 123. Kim Jong Un, the leader of North Korea,
A. China, Brazil, India is an example of
B. The US and Western Europe A. a dictator
C. Poor developing nations and weak B. a King
states
C. a democratically elected leader
D. UN agencies and NATO
D. an oligarch
119. Question 4:Market economy is:
A. Opposite of socialist economy. 124. Example of country (s) that practice indi-
B. Own products have capitalist produc- vidualism:
tion methods. A. China
C. Progressive economic organization of B. India
humanity.
C. USA
D. Achievements of human civilization
and not opposed to socialism. D. Japan

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1.1 POLITICAL ECONOMY 17

125. What are remittances and how do they D. Domestic consumers from the import
impact the economy of the home country? competition.

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A. Remittances are gifts sent by the gov- 128. Study of relationship between economics
ernment to boost the economy and politics.
B. Remittances are a type of tax imposed A. International Relations
on migrants to support the home coun-
try’s economy B. International Studies

C. Remittances are a form of investment C. International Political Economy

made by the home country in other na- D. Globalization
tions
129. What is the definition of a state?
D. Remittances are money sent by mi-
grants to their home country, and they A. An inhabited territorial entity con-
impact the economy by contributing to trolled by a government that exercises
household income, improving living stan- sovereignty over its territory
dards, and boosting consumption and in- B. The relationships among the world’s
vestment. state governments and the connection of
those relationships with other actors
126. Which factor plays the most important
role in ensuring the successful implemen- C. The types of actions that states take
tation of the cause of industrialization and toward each other through time
modernization of the country? D. Distinct spheres of international ac-
A. capital tivity within which policy makers of vari-
ous states face conflicts and sometimes
B. human resource quality achieve cooperation
C. science and technology
130. There is a strong relationship between
D. economic institutions economic freedom and economic growth.
127. The most commonly articulated reason A. True
for restricting food trade has been to pro- B. False
tect?
131. ‘One person or political party exercises
absolute control over all spheres of human
life’ refers to:
A. Political system
B. Totalitarianism
C. Communism
A. Domestic producers from the import D. Democracy
competition as they come under compet-
itive pressure to shed labor. 132. Question 1:What is the market economy
B. Students from the import competition built and developed in Vietnam today?
as they come under competitive pressure. A. Market mechanism with state regula-
C. Domestic producers from the export tion.
competition as they come under compet- B. Market economy develops according
itive pressure to shed labor. to socialist orientation.

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1.1 POLITICAL ECONOMY 18

C. Socialist market economy. 137. which countries are categorized as low in-
D. Rich people, strong country, fair, come countries?
democratic and civilized society. A. Madagascar
B. Vietnam
133. The most important aim in a person’s life
is to work for the prosperity and happi- C. Tibet
ness of the family.This is an example of: D. none of above
A. collectivism

NARAYAN CHANGDER
138. Which of the following statements is
B. individualism most accurate?
134. What is the main purpose of the Print- A. Political science deals with the world
ing Presses and Publications Act 1984 in as it is while economics considers the
Malaysia? world as it should be
A. To control the distribution of govern- B. Political science is about opinions
ment publications while economics is about facts
B. To promote foreign investment in the C. Political science focuses on power
media industry while economics focuses on the allocation
of scarce resources
C. To protect freedom of speech and ex-
pression D. Political science focuses on institu-
tions while economics focuses on busi-
D. To regulate the printing and publica- nesses
tion of materials
139. Citizens’ right to own property is the
135. In 1997, two South Korean manufac- right of citizens to property under their
turers of semiconductors, LGSemicon and ownership, including:
Hyundai Electronics, were accused of sell-
ing dynamicrandom access memory chips A. Right to possess and use
(DRAMs) in the U.S. market at belowtheir B. Usage rights
costs of production. It was alleged that C. The right to dispose of and benefit
the firms were trying tounload their ex- from property
cess production in the United States. This
is anexample of: D. The right to possess, use, dispose of
and benefit from property
A. dumping
B. to the tariff value 140. What is an illegal traffic or trade in offi-
cially controlled or scarce commodities
C. subsidy
A. Market
D. import quota
B. Mercantilism
136. The two-sided nature of commodity pro- C. Black Market
duction labor
D. Monopoly
A. private labor and social labor
141. A political system that stresses the pri-
B. simple task, complex task macy ofcollective goals over individual
C. Concrete LD Abstract LD goals is called
D. lld past A. Individualism

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1.1 POLITICAL ECONOMY 19

B. Collectivism 145. What are the main characteristics of in-

dustrialization and modernization in Viet-
C. A Democracy
nam?

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D. A Market Economy
A. 3
142. What does social praxis refer to in the B. 4
context of political economy? C. 5
A. The fundamental unity of thinking and D. 6
doing
146. What are the functions of global financial
B. The study of control and survival in so-
institutions in the context of international
cial life
political economy?
C. The process of transforming things val- A. Regulating national currencies and in-
ued for their use into marketable products terest rates
D. The process of creating social rela- B. Promoting environmental conserva-
tions organized around social class, gen- tion and sustainability
der, and race
C. Facilitating international trade and in-
143. What is the central thesis of Adam vestment, promoting economic develop-
Smith’s ‘The Wealth of Nations’? ment, and providing financial stability

A. Individual need to fulfil self-interest re- D. Advocating for human rights and social
sults in societal benefit justice

B. Free trade hinders economic growth 147. Which organizations play a bigger role in
the global security structure?
C. Mercantilism is the key to economic
prosperity A. UN agencies and NATO
D. Government interference in market ac- B. Poor developing nations and weak
tivities is necessary states
C. China, Brazil, India
144. What is International Political Economy
(IPE)? D. The US and Western Europe

A. IPE refers to the interdisciplinary field 148. A republic is

of study that explores the interaction be- A. a country without a leader
tween politics and economics at the inter-
B. a country without an army
national level.
C. a country without a King or Queen
B. IPE is a term used to describe the po-
litical systems and economic structures of D. a country without a religious leader
individual countries.
149. Which philosopher is associated with the
C. IPE refers to the study of international liberal perspective of inequality?
relations and diplomatic negotiations be- A. Aristotle
tween different nation
B. John Rawls
D. IPE is a branch of political science that
examines the influence of foreign policies C. Robert Nozick
on domestic economies. D. none of above

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1.1 POLITICAL ECONOMY 20

150. How do multinationals contribute to the 154. In , government plans the goods and
economic development of host countries? services that a country produces, the quan-
tity that is produced, and the prices as
A. Multinationals contribute by increas-
which they are sold.
ing poverty and income inequality
A. market economies
B. Multinationals contribute through job
creation, technology transfer, infrastruc- B. command economies
ture development, and tax revenue gener- C. mixed economies
ation.

NARAYAN CHANGDER
D. soft economies
C. Multinationals contribute by creating
environmental degradation and pollution 155. What was the ‘ethnic bargain’ in
D. Multinationals contribute by causing Malaysia’s history?
unemployment and exploiting local labor A. A condition agreed to at independence
to address ethnic disparities
151. Which political-economic system empha-
sizes individual freedom and limited state B. A policy to promote ethnic segregation
involvement in the economy? C. A trade agreement with neighboring
A. Social democracy countries
D. A political alliance between different
B. Communism
ethnic groups
C. Mercantilism
156. In several Western democracies, the poor
D. Liberalism
performance of state-owned enterprises,
152. What Is a Remittance? because of protection from competition
and guaranteed government financial sup-
port, led to
A. privatization
B. nationalization
C. liberalization
A. A remittance is a payment of money D. socialization of production
that is transferred to another party
157. What is the commitment of political econ-
B. A remittance is a payment of goods
omy to moral philosophy?
that is transferred to another party
A. It cares about the values that help to
C. A remittance is a payment of aid that create social behavior and about those
is transferred to another party moral principles that ought to guide ef-
D. A remittance is a payment of subsidy forts to change it
that is transferred to another party B. It focuses on understanding the oper-
ation of power and the ways consumer
153. A period during which total production
choices influence media products
and total employment are decreasing.
C. It aims to build on the unity of the po-
A. Expansion
litical and the economic by accounting for
B. Recession their mutual influence

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1.1 POLITICAL ECONOMY 21

D. It is the study of the social relations 163. GDP is not affected by inflation
that constitute the production, distribu- A. True
tion, and consumption of resources

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B. False
158. Which of the following is a principle of
164. What is the main purpose of the Sedition
the World Trade Organization (WTO)?
Act 1948 in Malaysia?
A. Tariff escalation
A. It criminalizes speech that has a sedi-
B. Import substitution tious tendency
C. Bilateralism B. It protects freedom of speech and ex-
pression
D. Non-discrimination
C. It regulates the distribution of printed
159. Which would be considered private prop- materials
erty? D. It promotes equality and social justice
A. A gated community
165. What is gaining attention in driving social
B. Super market and economic change in the United King-
C. School dom?
D. Neighborhood playground A. Traditional businesses
B. Social enterprises and impact invest-
160. What is the impact of globalization on na- ing
tional sovereignty?
C. Government subsidies
A. Increase in national sovereignty
D. Foreign direct investment
B. No impact on national sovereignty
166. What kind of political system is Vietnam
C. Complete loss of national sovereignty following?
D. Reduction in national sovereignty A. Communist totalitarianism
161. What is the socioeconomic meaning of B. Right-wing totalitarianism
“Ejido”? C. Individualism
A. Village communal land D. Representative democracy
B. Group of small scale producers 167. The communists believed that socialism
C. A group of households could be achieved by democratic means,
and turned their backs on violent revolu-
D. Village private land
tion and dictatorship.
162. Market A. True
A. A place to buy food B. False
B. A place where goods and services are 168. What were the measures carried out by
trades for currency the Federal Government to stop the spread
C. Black market of SARS-CoV-2 in Mexico?

D. Trade between many different coun- A. Social Distance & New Normal
tries B. Party & Dance

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1.1 POLITICAL ECONOMY 22

C. Vaccination 173. Tariffs are unambiguously anti-producer

and pro-consumer.
D. One Health
A. True
169. The TRIPS acts as an umbrella organi-
B. False
zation that encompasses the GATT along
with two new sister bodies, one on ser- 174. In recent decades, the international polit-
vices and the other on intellectual prop- ical economy has seen the emergence of
erty. new powerful states in the global econ-

NARAYAN CHANGDER
A. True omy, such as?

B. False

170. In a(n) economy the government

plans the goods and services that a coun-
try produces, the quantity in which they
are produced, and the prices at which they
are sold.
A. market A. China India
B. open economy B. Pakistan Brazil
C. let it happen C. Bolivia Paraguay
D. command D. Guatemala Australia

171. What is the main goal of the New Eco- 175. What policies have been introduced to re-
nomic Policy (NEP) in Malaysia? duce inequality in the United Kingdom?
A. To establish a socialist economic sys- A. Reducing corporate taxes
tem B. Privatizing public services
B. To increase government control over C. Implementing flat taxation
the media
D. Increasing the minimum wage
C. To promote foreign investment in the
country 176. The sale of stocks and bonds are excluded
from GDP.
D. To achieve redistribution without ham-
pering growth A. True
B. False
172. He argues that a strategic policy aimed at
establishing domestic firms in a dominant 177. Government use of taxing and spending
position in a global industry is a beggar- to stabilize the economy
thy-neighbor-policy that boosts national A. Monetary policy
income at the expense of other countries.
B. Fiscal policy
A. Paul Krugman
178. Question 9:The state intervenes in eco-
B. Adam Smith
nomic interest relationships to:
C. David Ricardo
A. Ensuring the economic benefits of the
D. John Dunning state.

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1.1 POLITICAL ECONOMY 23

B. Ensure social benefits. 184. How do economic tools can be used to in-
C. Ensure harmony of economic interests fluence the behaviour of states?

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between subjects. A. By imposing trade restrictions, finan-
D. Ensure personal benefits. cial penalties or asset freeze

179. It means the good use of resources to pro- B. Cultural exchange and cooperation
duce the most goods and service.
C. Military interventions and force
A. Efficiency
D. Diplomatic negotiation and dialogues
B. Equity
C. Effectivity 185. The most important aim in a person’s life
D. none of above is to work for the prosperity and happi-
ness of the family.This is a situation of
180. When the country gathers raw materials
from other places and create finished prod- A. individualism
ucts to export.
B. collectivism
A. capitalism
B. mercantilism 186. Question 10:What is one of the goals
C. communism of developing a socialist-oriented market
economy in our country?
D. socialism
A. To have an advantage when participat-
181. In the socialist-oriented economy, what ing in international trade.
is the purpose of state planning?
B. Increase the influence of Vietnam’s
A. create motivation for businesses
economy internationally.
B. ensure the major, overall balance of
the national economy C. Building the material and technical ba-
sis of socialism.
C. ensure balance for businesses’ opera-
tions D. To create attraction in the territory to
D. regulate supply-demand relationships attract foreign investment.
and market commodity prices
187. A civil law system tends to be less adver-
182. How many countries were divided after sarial than a common law system because
the world war II? the:
A. 3 category
A. judges’ decisions are based on de-
B. 4 category tailed legal codes
C. 2 category
B. judges have the freedom to interpret
D. none of above laws based on the situation.
183. The World Trade Organization was cre- C. judges’ decisions are based on reli-
ated as part of the UruguayRound. gious teachings
A. True D. judges are guided by interpretations
B. False made in prior legal cases

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1.1 POLITICAL ECONOMY 24

188. In whom or who runs the apparent moti- A. Laws, strategies, plans, planning, pol-
vation to prevent a decline in national food icy mechanisms, and economic tools
security? based on respect for market principles.
B. Laws, strategies, plans, planning, pol-
icy mechanisms, economic tools and so-
cialist orientation.
C. Apply the rules of the market economy
and the rules of socialism.

NARAYAN CHANGDER
D. Operate the market mechanism and
ensure socialist orientation.
192. If I am not able to purchase the book am
I still required to have the textbook?
A. Policymakers A. Yes
B. Aristocracy B. No

C. President C. Maybe
D. This has not been discussed or cov-
D. Tik-Toker
ered in the syllabus
189. Question 6:For a socialist-oriented mar- 193. What is the law of value?
ket economy in Vietnam, what factors are
A. basic laws of production and exchange
needed to achieve a comprehensive value
of goods
system including rich people, strong coun-
try, democratic, fair, and civilized society? B. CNTB’s own rules
A. In society, there are no longer con- C. general rules of all societies
flicts between population classes. D. rules of the transition period to social-
B. Cooperation and support from coun- ism
tries in the Socialist system. 194. Question 2:What are the characteristics
C. The regulatory role of the state under of a socialist-oriented market economy?
the leadership of the Communist Party. A. 3
D. The State budget must be strong B. 4
enough to implement welfare policies. C. 5
190. ‘Government is by the people’ refers to: D. 6

A. Political system 195. What does Article 152 of the Federal Con-
stitution of Malaysia address?
B. Totalitarianism
A. Freedom of speech, assembly, and as-
C. Communism sociation
D. Democracy B. Saving for Rulers’ sovereignty
191. Question 7:In a socialist-oriented market C. Reservation of quotas for Malays and
economy, the state manages the economy natives of Sabah and Sarawak
through: D. National language

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1.1 POLITICAL ECONOMY 25

196. What are the fundamental components of 201. Government plans the goods and services
political economy? that a country produces, the quantity that
is produced, and the prices as which they

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A. Markets and property
are sold.This refers to
B. Public goods and social expenditures
A. market economies
C. Taxation and regulation
B. command economies
D. Trade and income inequality
C. flexible economies
197. Advocates of strategic trade policy favor D. mixed economies
subsidies to help domestic firms achieve a
first-mover advantage in an emerging in- 202. How do global financial institutions influ-
dustry. ence the economic policies of sovereign na-
A. True tions?

B. False A. By controlling the weather patterns

B. By providing military support
198. Tariffs are unambiguously pro-consumer
and anti-producer. C. Through providing financial assis-
tance, setting conditions for loans, and in-
A. True fluencing international trade agreements.
B. False D. By influencing cultural exchange pro-
199. What are global supply chains and how grams
do they contribute to globalization in the 203. In a democracy, who holds the political
context of international political economy? power?
A. Global supply chains are intercon-
nected networks of producers, suppliers,
and distributors across different coun-
tries, contributing to globalization by fa-
cilitating the flow of goods, services, and
capital across borders.
B. Global supply chains are limited to one
country only
C. Global supply chains only involve the
flow of goods within a single country
D. Global supply chains have no impact on A. government leaders
globalization B. citizens

200. Which perspective is concerned with rais- C. landowners

ing the well-being of the worst-off (the D. school superintendents
poorest) of society?
204. When the value of current decreases dra-
A. Utilitarianism matically and the prices of goods and ser-
B. Liberalism vices go up by a lot, what is that called?
C. Libertarianism A. inflation
D. none of above B. hyperinflation

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1.1 POLITICAL ECONOMY 26

C. deflation equipment, it must ensure that at least 51

D. regulation percent of the product by value ismanufac-
tured in the United States. This is an ex-
205. What is the view on perfecting socialist- ample of:
oriented market institutions? A. anti dumping duties
A. Ensuring synchronization between B. import quotas
component parts of economic institutions,
between market factors and market types C. voluntary export restraint

NARAYAN CHANGDER
B. Be proactive and proactive about theo- D. local content requirements
retical and practical issues. At the same
time, improve the Party’s leadership ca- 209. Donald Trump is an example of a leader
pacity and the State’s management effec- of what kind of country
tiveness A. a constitutional monarchy
C. Selectively inheriting humanity’s B. a theocracy
achievements in developing the market
C. a dictatorship
economy and experience summarized
from innovation practices in our country; D. a democracy
Be fully aware, respect and properly apply
the objective laws of the market economy 210. In practice, Lindahl Pricing is difficult to
implement because it faces various prob-
D. All 3 answers above are correct.
lems, including:
206. In which field did the Soviet-style indus- A. Preference Relevation Problem
trialization model begin?
B. Preference Aggregation Problem
A. Light sun
C. Preference Substitution Problem
B. Severe sun
D. Preference Knowledge
C. National defense industry
D. Smoke-free sun 211. What sector is Mexico’s fiscal depen-
dency?
207. How does globalization challenge the tra-
A. Oil
ditional concept of national sovereignty?
B. Gas
A. Globalization only affects local busi-
nesses C. Coal
B. Globalization increases intercon- D. Wood
nectedness and reduces control over
economies and policies. 212. What is the broader question that encom-
passes the United Kingdom’s place in the
C. Globalization has no impact on na-
contemporary international system?
tional sovereignty
A. Its economic role and relationship
D. Globalization strengthens the control
with Europe
over economies and policies
B. Its cultural influence in the world
208. According to the Buy America Act, if a
C. Its military power and alliances
company wishes to win acontract from a
U.S. government agency to provide some D. Its environmental policies

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1.1 POLITICAL ECONOMY 27

213. Why is the security structure considered C. Having no impact on the labor market
one of the most important structures in the D. Regulating the entry of foreign work-
IPE?

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ers and impacting the supply of labor and
A. Because it connects major players wages.
such as nation-states, IOs, NGOs, interna-
tional business, and subnational groups 218. Political systems that emphasize
tend towards totalitarianism, while
B. Because it focuses on economic tend to be democratic.
growth and spread of capitalism
A. individualism; collectivism
C. Because it deals with environmental
B. collectivism; individualism
problems and epidemic diseases
C. individualism; socialism
D. Because it promotes cooperation with
allies and use of nonmilitary instruments D. theocracy; capitalism

214. plays a major role and has a large 219. Nowadays, with more and more online
impact on the American political system. shopping on e-commerce sites, it is quite
common to buy poor quality products, fake
A. Democratic law goods, or incorrect models. This violates
B. Political parties which of the following?
C. Republican law A. Property rights of the state, organiza-
tions and individuals
D. rule of law
B. Land law
215. Which indicator is used to compare the C. Intellectual property rights
relative wealth and standard of living
across countries? D. Law on contracts and personnel dis-
putes
A. Gross Domestic Product (GDP)
B. Human Development Index (HDI) 220. government by the people
A. Democracy
C. Gini Index
B. Oligarchy
D. Purchasing Power Parity (PPP)
C. Communism
216. What is the longest, most complicated, D. Autocracy
and the last of the GATT rounds?
A. Kennedy Round 221. What are the potential consequences of
cultural homogenization on diverse soci-
B. Uruguay Round eties in the context of international politi-
C. Doha Round cal economy?
D. Tokyo Round A. Loss of cultural diversity, erosion of
traditional values and practices, and po-
217. How do migration policies affect the la- tential dominance of one culture over oth-
bor market of the host country? ers.
A. Increasing the demand for labor and B. Strengthening of cultural identity and
driving up wages appreciation for different cultures
B. Reducing the number of available jobs C. Promotion of cultural diversity and
for local workers preservation of traditional values

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1.1 POLITICAL ECONOMY 28

D. Enhancement of cultural exchange and B. the system of government in a nation

mutual understanding C. the rule of man
222. Which of the following statements about D. the rules that regulate behavior along
the legal systems of countries is true? with the processes by which the laws are
A. They can affect the attractiveness of a enforced and through which redress for
country as an investment site or market. grievances is obtained

B. They are not influenced by the prevail- 226. Which perspective is concerned with the

NARAYAN CHANGDER
ing political system of the country equality of processes but not the equality
C. They are almost the same for all coun- of outcomes?
tries. A. Utilitarianism
D. They are of little importance to interna- B. Liberalism
tional business
C. Libertarianism
223. What is not the role of the state in en- D. none of above
suring harmony with the interests of a
socialist-oriented market economy? 227. What is the main purpose of Article 10 in
A. protect the legitimate interests of eco- the Federal Constitution of Malaysia?
nomic entities A. To question matters established or
B. harmonizing the interests of business protected by specific provisions of the
and social actors Constitution

C. Control relationships that negatively B. To protect the sovereignty of the

affect society Rulers
D. combine beneficial relationships C. To reserve quotas in respect of ser-
vices for Malays and natives of Sabah and
224. Which two institutions were created as a Sarawak
part of the Bretton Woods Systems? D. To protect freedom of speech, assem-
A. Organization for Economic Coopera- bly, and association
tion and Development (OECD) and Euro-
pean Central Bank (ECB) 228. The strategic trade argument states that
the government should temporarily sup-
B. International Monetary Fund (IMF)
port new industries until they become
and World Bank
strong enough to compete internationally.
C. North Atlantic Treaty Organization
A. True
(NATO) and Organization of Petroleum Ex-
porting Countries (OPEC) B. False
D. World Trade Organization (WTO) and 229. Which of the following areas of interna-
United Nations (UN) tional trade is regulated by the Foreign
Corrupt Practices Act?
225. Economic system refers to:
A. the set of structures and processes A. Making and performance of commer-
that guides the allocation of scarce re- cial contracts in international trade.
sources and shapes the conduct of busi- B. Preventing bribery and unethical acts
ness activities in a nation in the conduct of international business.

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1.1 POLITICAL ECONOMY 29

C. Establishing a set of safety standards 234. In the Uruguay Round of trade negotia-
to which a new product must adhere. tions, the talks originally broke down in
1990 primarily because of the strong dis-

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D. Controlling the mafia activity that hin-
ders trade in Russia, Japan, and the U.S. agreement between the United States and
the European Community with respect to
230. What event awakened many officials and
A. service restrictions
experts to the pressing security issues?
A. The September 11, 2001 attacks B. antidumping provisions
B. The collapse of the Soviet Union C. treatment of intellectual property
C. The US-led invasions of Iraq and D. subsidies and protection in agricul-
Afghanistan ture.
D. The tensions between the US and So-
viet Union during the Cold War 235. Public goods are things that:

231. In late 2003, the Bush administration uni- A. Can be enjoyed by more than one per-
laterally placed temporary import quotas son without any reduction in the good
on several textile items imported from B. People cannot be excluded from their
A. the European Union consumption
B. Japan C. Are unlikely to be provided by individ-
C. Brazil ual rational actors
D. China D. All of the above

232. Political systems refers to 236. What approach did the Clinton adminis-
A. the rule of man tration take towards the international dis-
B. the rules that regulate behavior along tribution of power?
with the processes by which the laws are A. Multipolar best served by a multilat-
enforced and through which redress for eral approach
grievances is obtained
B. Bipolar centered on the Soviet Union
C. is the set of structures and processes
that guides the allocation of scarce re- C. Unipolar centered on the US
sources and shapes the conduct of busi- D. Nonmilitary instruments to deal with
ness activities in a nation opponents
D. the system of government in a nation
237. The theory which states that the peo-
233. What is the GINI index? ple cannot trust the government in spend-
A. calculates the inequality level in a ing the budget, so the people need to
country prepare scenarios to counter the govern-
B. calculates the amount of tourism in a ment’s greed is called the theory
country A. Arrow’s Impossibility Theory
C. calculates the amount of military B. Budge Maximizing Bureaucrat
weapons
C. Size-Maximizing Bureaucracy
D. a complex formula to calculate the pop-
ulation D. Teori Leviathan

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1.1 POLITICAL ECONOMY 30

238. What is the maximin criterion? C. trade relations between countries

A. Government should maximize the well- D. the alternative name for communism
being of the worst-off people in society
244. What are the factors that contribute to la-
B. Government should maximize every-
bor migration in the era of globalization?
one’s well-being in society
A. Climate change, technological ad-
C. Government should maximize the well-
vancement
being of the wealthiest people in society

NARAYAN CHANGDER
B. Religious beliefs, cultural traditions
D. none of above C. Language barriers, lack of education

239. enable(s) a manager to walk away D. Economic disparities, demand for la-
from a decision that is profitable. bor, ease of travel and communication, po-
litical instability
A. Kantian Discipline
B. Economic self-sufficiency 245. For scholars intent on consolidating the
field of IPE the main task is to:
C. Human resources
A. Integrate cultural studies approaches
D. Moral courage
B. Build upon agreed theoretical ap-
240. Political party that represents the in- proaches and problems
terests of a particular tribe monopolizes
power.This refer to: C. Challenge existing theoretical and
epistemological approaches
A. Communist Totalitarianism
D. Discover new topics to explore
B. Tribal Totalitarianism
C. Theocratic Totalitarianism 246. Explain the concept of brain drain in the
context of labor migration.
D. Right-Wing Totalitarianism
A. Emigration of highly skilled and edu-
241. What is the primary objective of the cated individuals leading to a loss of talent
state according to mercantilism? and expertise in the origin country.
A. Security B. Emigration of individuals with no im-
B. Economic growth pact on the talent and expertise in the ori-
gin country.
C. Environmental protection
D. Cooperation with allies C. Emigration of highly skilled and edu-
cated individuals leading to an increase in
242. IPE focuses most heavily on the enduring talent and expertise in the origin country.
political battle between the winners and D. Emigration of unskilled and unedu-
losers from global economic change. cated individuals leading to a loss of talent
A. True and expertise in the origin country.
B. False
247. Which of the following is/are true?I. Lo-
243. What is a quota? cal content requirement can be expressed
either in physical terms or in value terms.II.
A. A certain quantity of a good Administrative trade policies are those de-
B. business quotes signed to punish foreign firms that engage

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1.1 POLITICAL ECONOMY 31

in dumping.III. Tariff refers to taxes im- certain industries. This can impact inter-
posed by a government on imports (or ex- national trade by affecting the availability
ports). of livestock for trade.

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A. I, II and III C. Trade-induced migration is the move-
ment of capital across borders due to
B. I and II
changes in trade patterns, such as the
C. III only opening of new markets or the decline of
D. I and III certain industries. This can impact inter-
national trade by affecting investment op-
248. It refers to selling of goods in a foreign portunities and financial markets.
market below their costs of production or D. Trade-induced migration is the move-
below their fair market value. ment of goods across borders due to
A. Dumping changes in trade patterns, such as the
opening of new markets or the decline of
B. Antidumping policies certain industries. This can impact inter-
C. Exchange national trade by affecting supply chain lo-
gistics and transportation costs.
D. Disposal of assets
251. What is one recommendation for the gov-
249. What are some of the ethical challenges ernment to get economic benefits from
faced by multinational corporations in their globalisation?
operations?
A. Limit trade and financial flows
A. Engaging in fair and transparent nego- B. Encourage migration of workers
tiations with government officials
C. Borrow money against future income
B. Offering bribes to government officials
D. Remove obstacles to trade and finan-
C. Ignoring labor laws and regulations cial flows
D. Adhering to international trade laws 252. What is the collective goods problem?
and regulations
A. A principle for solving collective goods
250. Explain the concept of trade-induced mi- problems by imposing solutions hierarchi-
gration and its impact on international cally
trade. B. A response in kind to another’s actions
A. Trade-induced migration refers to the C. A tangible or intangible good, created
movement of people across borders due by the members of a group, that is avail-
to changes in trade patterns, such as the able to all group members regardless of
opening of new markets or the decline their individual contributions
of certain industries. This can impact in-
D. A principle for solving collective goods
ternational trade by affecting labor sup-
problems by changing participants’ prefer-
ply, consumer demand, and cultural ex-
ences based on their shared sense of be-
change.
longing to a community
B. Trade-induced migration refers to the
migration of animals across borders due 253. These are the example of totalitarianism
to changes in trade patterns, such as the leaders
opening of new markets or the decline of A. Adolph Hitler

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1.1 POLITICAL ECONOMY 32

B. Benito Mussolini D. Federalists

C. Mahathir Mohamad 259. Tariffs
D. Najib Razak A. A system of private property and free
254. Which words are found in Chapter 3 in market
the section Redistributive Policies? B. A government tax on imports or ex-
A. Liberalism and socialims ports
C. The total market value of goods and

NARAYAN CHANGDER
B. The second public policy
services produced by one country in a
C. Ideology and crime year
D. Crime policy and law D. A Market controlled by single producer
255. How do multinational corporations influ- 260. What was the main impact of the 1985
ence trade policies? and 1986 recession on the Malaysian econ-
A. Engaging in fair and transparent nego- omy?
tiations with government officials A. Redistribution was achieved but at the
B. Offering bribes to government officials cost of increasing distortions to the econ-
omy
C. Using economic power and influence
to persuade government officials, partici- B. The economy experienced rapid
pating in trade associations, and engaging growth and development
in direct lobbying efforts C. The economy became more stable and
D. Using social media campaigns and pub- resilient
lic protests D. The government successfully reduced
poverty and income inequality
256. A person has serious stomach problem.
He is searching for a doctor. He will con- 261. Individualism stresses (can be more than
sult an expert doctor and will get treated one)
by him.This is an example of:
A. primacy of individual goals
A. collectivism
B. primacy of collective goals
B. individualism
C. individual freedom
257. What impact did the financial crisis of D. private ownership
2008 have on the UK economy?
262. Economic systems refers to
A. No impact
A. the rule of man
B. Strengthened financial sector
B. the rules that regulate behavior along
C. Increased regulation and oversight with the processes by which the laws are
D. Decreased regulation and oversight enforced and through which redress for
grievances is obtained
258. Modern trace their intellectual roots
to Karl Marx. C. is the set of structures and processes
that guides the allocation of scarce re-
A. Separatists sources and shapes the conduct of busi-
B. Capitalists ness activities in a nation
C. Socialists D. the system of government in a nation

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1.1 POLITICAL ECONOMY 33

263. What is subsidy? in developing countries and concentrating

A. sum of money granted by the govern- profits in the hands of multinational cor-
porations. The policy implications include

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ment or a public body to assist an industry
or business so that the price of a commod- the need for regulations to protect work-
ity or service may remain low or competi- ers’ rights and fair wages, as well as mea-
tive. sures to promote economic development
in marginalized regions.
B. government money
D. Global supply chains contribute to in-
C. money come inequality by providing fair wages
D. politics and job security for workers in developing
countries and ensuring equal distribution
264. TRIPS regulations oblige WTO members of profits among all stakeholders.
to all of the followingEXCEPT:
267. Political economy involves:
A. grant and enforce patents lasting for
at least 20 years A. The integration of politics and eco-
nomic
B. grant and enforce copyrights lasting
for 50 years B. The application of economic methods
to political problems
C. comply with the rules within 5 year for
rich countries. C. The application of Marxist methods
D. comply with the rules within 10 year D. All of the above
for poorest countries.
268. Violation of property rights done through
265. What is a tariff? legal mechanisms such as levying exces-
sive taxation and requiring expensive li-
A. a tax on foreign goods
censes or permits from property holders is
B. a violation of international trade called
C. Trade between the Middle East and Eu- A. private action
rope
B. collective action
D. an obsolete form of trading
C. public action
266. How do global supply chains contribute to D. copyright violation
income inequality and what are the policy
implications of this? 269. The longstanding arrangement for regu-
lating the flow of imports of textiles and
A. Global supply chains contribute to in-
apparel into developed countries from de-
come inequality by creating job opportuni-
veloping countries was known as
ties in developing countries and distribut-
ing profits evenly among workers. A. the Generalized System of Prefer-
ences
B. Global supply chains contribute to in-
come inequality by increasing wages for B. the Multi-Fiber Arrangement
workers in developing countries and pro- C. a “fast-track” agreement
moting economic growth in marginalized
regions. D. an outsourcing/offshoring agreement

C. Global supply chains contribute to in- 270. Interdependent political, economic, and
come inequality by exploiting cheap labor legal systems of a country make up its:

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1.1 POLITICAL ECONOMY 34

A. administrative agenda. D. A state where if you don’t give the

B. socioeconomic fabric. government money, you will be punished
greatly.
C. economic environment.
D. political economy. 276. What are the economic implications of
strict migration policies on the host coun-
271. A form of government in which one per- try?
son or political party exercises complete
A. Increase in job opportunities for locals
control over all spheres of human life and

NARAYAN CHANGDER
prohibits opposing political parties is B. Decrease in government spending on
A. A Democracy social services

B. A Representative Democracy C. Labor shortages, impact on economic

growth, and changes in the demographic
C. Totalitarianism composition of the workforce
D. Socialism
D. Strengthening of the national currency
272. higher spending and tax cuts
277. Which of the following is generally
A. Expansionary fiscal policy thought to have established the highest
B. Contractionary monetary policy tariffs in U.S. history?
C. Contractionary fiscal policy A. Trade Act of 1974
D. none of above B. Reciprocal Trade Agreements Act of
1934
273. Vietnam’s economy belongs to:
C. Tariff Act of 1930 (Smoot-Hawley tar-
A. Market economy
iff)
B. The mixture economy
D. General Agreement on Tariffs and
C. Planned economy Trade
D. There is no correct answer
278. Which of the following is NOT one of the
274. A person has serious stomach problem. main instruments of tradepolicy?
He is searching for a doctor. He will con-
A. Tariffs
sult an expert doctor and will get treated
by him.This is a situation of B. Credit Portfolios
A. individualism C. Local content requirement
B. collectivism D. Administrative Policies
275. Which is an example of economic equal- 279. By lowering production costs, help
ity. domestic producerscompete against for-
A. A state where everyone has different eign imports.
money and taxation. A. subsidies
B. A state where essentially everything is
B. duties
shared with the government.
C. quotas
C. A state where everyone has the same
taxation and generally the same income. D. tariffs

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1.1 POLITICAL ECONOMY 35

280. Protecting domestic industries from for- 285. Global economic exchange maybe benefi-
eign competition� Is the use of what pol- cial to others and to some, they are not.
icy?

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A. True
A. Free Trade Policies B. False
B. Tariffs
286. Collectively, we refer to political, eco-
C. Regulation nomic, and legal systems as constituting
D. Protectionist Policies the economy of a country.
A. Legislative
281. In which type of economic system are all
productive activities privately owned? B. Governing

A. A Mixed Economy C. Political

D. Administrative
B. A Command Economy
C. A Representative Economy 287. What is the main motivation driving hu-
man behavior?
D. A Market Economy
A. Pursuit of happiness
282. What is a monopoly? B. Desire for power
A. an exclusive possession of a commod- C. Need for equality
ity or service
D. Quest for wealth
B. Park Place and Boardwalk
288. Discuss the concept of reshoring and its
C. When the government distribute the
potential impact on global supply chains
wealth
and international political economy.
D. Supplying more public goods
A. Reshoring has no impact on global sup-
283. Question 8:Which economic sectors are ply chains
identified as the core to develop an inde- B. Reshoring can impact global supply
pendent and autonomous economy in our chains by potentially reducing the reliance
country? on foreign suppliers and increasing do-
mestic production. In terms of interna-
A. State economy.
tional political economy, reshoring can
B. Collective economy. lead to changes in trade policies, labor
C. Private economy. regulations, and overall economic compet-
itiveness.
D. All three options above.
C. Reshoring will lead to increased re-
284. The most recently successfully completed liance on foreign suppliers
GATT/WTO “round” or set of multilateral D. Reshoring will have no effect on inter-
trade negotiations was the national political economy
A. Doha Development Agenda.
289. What is the main goal of social democ-
B. Uruguay Round. racy?
C. Tokyo Round. A. Maximizing individual freedom
D. Kennedy Round. B. Achieving collective equality

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1.1 POLITICAL ECONOMY 36

C. Promoting state power 294. State ownership of the means of produc-

tion:
D. Encouraging economic competition
A. is the most profitable way to organize
290. In what year did Mexico enter the the production
General Agreement on Tariffs and Trade
B. is the most acceptable way to organize
(GATT)?
the economy
A. 1986 C. often runs in parallel with the public in-

NARAYAN CHANGDER
B. 1994 terest
C. 2018 D. leads to increased inefficiency, higher
prices and higher taxes
D. 2022
295. What is the contemporary international
291. What is the proportion of the population monetary arrangement where the value
in Yucatan that lives in poverty? of a currency is determined by the forces
A. almost 49% of supply and demand in the foreign ex-
change market?
B. less than 30%
A. Eurodollar market system
C. More than 55%
B. Floating exchange rate system
D. Equal 14%
C. Reserve currencies system
292. Discuss the role of international organiza- D. Fixed exchange rate system
tions in addressing the global governance
of migration. 296. In which presidential administration was
the Ejido established?
A. International organizations are only
responsible for providing funding for mi- A. Cardenas
gration issues B. Fox
B. International organizations only focus C. Salinas
on domestic migration
D. Lopez-Obrador
C. International organizations play a cru-
cial role in setting standards, coordinating 297. Individualism emphasize
policies, and providing assistance in man-
A. individual goals
aging migration at a global level.
B. collective goals
D. International organizations have no
role in addressing global migration C. individual freedom
D. private ownership
293. What is the main focus of Classical Liber-
alism and Limited Government? 298. Comparative advantage is central to:
A. Personal Freedom and Neoliberalism A. Liberalism
B. The Third Way and Blair’s Labour Party B. Economic nationalism
C. Social-Democratic Consensus C. Critical thought
D. Limited Government D. Feminism

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1.1 POLITICAL ECONOMY 37

299. The international financial system means B. Right-wing Totalitarianism

A. A system of exchange rates and inter- C. Theocratic Totalitarianism

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national payments that allows countries D. Communist Totalitarianism
to conduct business with one another
304. Which policy collects revenue from high
B. A platform for risk management, such
earners and gives subsidies to low earn-
as derivatives and currency hedging
ers based on income?
C. A system of fixed exchange rates that A. In-kind transfers
was in place from 1944 to 1971
B. Welfare
D. A network of organisations, regula-
tions, and markets that promote interna- C. Negative Income Tax
tional trade and capital flow between na- D. Minimum Wage
tions
305. what is the perspective of international
300. Directives from the government that con- political economy studies?
trol the activities of people and firms in the A. Constructivism
market. Which term correctly pairs with B. LIberalism
the definition?
C. comparative
A. Taxation
D. none of above
B. Inflation
306. International Political Economy study fo-
C. Regulation
cus about?
D. Import quotas A. Migration
301. A village has been badly flooded. Gov- B. Political and Economy Actors
ernment has sent relief to the village. The C. Security
villagers will share the relief according to
D. none of above
their needs.This is a situation of
A. individualism 307. What does GDP stand for?
B. collectivism A. Gross Domestic Product
B. Great Domestic Price
302. What is the primary characteristic of the
C. Great Dane Puppies
Third Way and Blair’s Labour Party?
D. Good Domestic Population
A. Limited Government
B. Shift towards Personal Freedom and 308. Which of the following is a feature of a
Neoliberalism democracy?

C. Pragmatic and Tolerant Political Cul- A. Exercise of absolute control by one

ture person or political party.
B. Governance by people or elected rep-
D. Multiple Subcultures and Challenges
resentatives.
303. is found in states where political C. Prohibition of entry to opposing politi-
power is monopolized by a party accord- cal parties.
ing to religious principles. D. Complete restriction of individual polit-
A. Tribal Totalitarianism ical freedom.

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1.1 POLITICAL ECONOMY 38

309. is a direct restriction on the quantity for illegal immigrants and support for leg-
of some good that may beimported into a islation to designate English as the offi-
country. cial language of the United States; United
A. Import tariff Nations reform; tax relief to grow the
economy and promote small business; and
B. Import quota government reform, including the adoption
C. Import subsidy of a balanced budget act and ending ear-
marks in legislation. Which political party
D. To the value of the tariff
is this likely from?

NARAYAN CHANGDER
310. A plan for the federal government’s rev- A. Democratic Party
enues and spending for the coming year
B. Libertarian Party
A. Monetary policy
C. Republican Party
B. Tax
D. Green Party
C. Federal Budget
D. none of above 314. Industrialization and modernization in-
clude transforming the economic structure
311. Agricultural subsidies have been criti- towards modernity, i.e.?
cized for all of the following reasons ex- A. increase the proportion of agricultural
cept: service industry
A. They allow inefficient farmers stay in B. increase the proportion of the service
business industry
B. They discourage countries to overpro- C. increase the proportion of the fishery
duce heavily subsidized agricultural prod- service industry
ucts.
D. increase the proportion of forestry ser-
C. They encourage countries to produce vice industry
products that could be grown more
cheaply elsewhere and imported. 315. Largely theoretical policy under which
D. They reduce international trade in agri- governments impose absolutely no tariffs,
cultural products. taxes, or duties on imports, or quotas on
exports
312. Liberals argue that international cooper- A. free trade policy
ation:
B. no taxes
A. Can be facilitated by international or-
ganisations C. economy
B. Requires a hegemonic state D. reduced taxes
C. Primarily benefits the strongest states 316. What is migration?
D. Is impossible because of anarchy

313. The following is from a political parties

platform in 2008. “ support for the
Armed Forces, including better economic
opportunities and health and disability
care for veterans; opposition to amnesty

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1.1 POLITICAL ECONOMY 39

A. Amigrantis a person who moves from C. To regulate the production of goods in

one place to another, especiallyin order different countries.
tofindwork.

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D. To provide a framework for resolving
B. Amigrantis a policymaker who moves disputes between TNCs and states.
from one place to another.
321. How do global supply chains impact labor
C. It is a work activity markets in different countries and what
D. It is a cultural activity are the social implications of this?
A. Global supply chains only benefit labor
317. What major event broke the foundation markets in developed countries
of the Cold War security structure?
B. Global supply chains lead to equal job
A. The collapse of the Soviet Union opportunities for all countries
B. The September 11, 2001 attacks C. Global supply chains have no impact on
C. The US-led invasions of Iraq and labor markets
Afghanistan D. Global supply chains can lead to job
D. The tensions between the US and So- creation in some countries while causing
viet Union during the Cold War job displacement in others, and can also
contribute to income inequality and labor
318. The United States has a long history of a exploitation.
two party system. What does this mean?
322. Trade barriers constrain a firm’s ability
A. third parties almost always win major to disperse its productive activities in such
elections manner.
B. since the nation’s founding the Demo- A. True
cratic and Republican parties have won all
major elections B. False

C. two parties often get the most voter 323. is where political power represents
participation the interests of a particular tribe monopo-
lizes power.
D. all of these are true
A. Communist totalitarianism
319. The desire or willingness a consumer has
B. Tribal totalitarianism
to purchase a good or a service is called?
C. Theocratic totalitarianism
A. shortage
D. Right-wing totalitarianism
B. supply
C. price 324. who implements Fiscal Policy?
A. President/Congress
D. demand
B. Central Bank
320. The purpose of investment agreements in
C. Both
international production is:
D. none of above
A. To create a complex set of rules and
standards for foreign investment. 325. Which perspective is concerned with rais-
B. To ensure that TNCs receive preferen- ing the total well-being of society?
tial treatment in foreign countries. A. Utilitarianism

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1.1 POLITICAL ECONOMY 40

B. Liberalism 329. Globalization is like the survival of the

C. Libertarianism fittest the best who can adjust to the
environment are the most successful in sur-
D. none of above viving and reproducing.
326. What is the significance of the Sedition A. True
Act 1948 in Malaysia? B. False
A. It protects freedom of speech and ex-
pression 330. Explain the role of the International Mon-

NARAYAN CHANGDER
etary Fund (IMF) in the global financial sys-
B. It criminalizes speech that has a sedi- tem.
tious tendency
A. To regulate global trade agreements
C. It regulates the distribution of printed
materials B. To provide long-term financial assis-
tance to countries
D. It promotes equality and social justice
C. To promote international military coop-
327. Explain the concept of trade liberalization eration
and its role in shaping global supply chains
D. To promote international monetary co-
and international political economy.
operation, exchange stability, and provide
A. Trade liberalization promotes the free temporary financial assistance to coun-
flow of goods and services across bor- tries in need.
ders, shaping global supply chains and in-
fluencing the international political econ- 331. According to mercantilism, which coun-
omy. tries are at the top of the hierarchy of
B. Trade liberalization restricts the flow power in IPE?
of goods and services across borders, lim- A. The US and several other major eco-
iting global supply chains and influencing nomic and military powers
the international political economy.
B. The relative weaker powers of West-
C. Trade liberalization only applies to cer- ern Europe, Asia, Latin America, and
tain types of goods and services, and does Africa
not affect global supply chains or the inter-
C. The majority of poor developing na-
national political economy.
tions and weak states
D. Trade liberalization has no impact on
the flow of goods and services across D. UN agencies and NATO
borders, and has no influence on global
332. What are the potential risks associated
supply chains or the international political
with a floating exchange rate regime?
economy.
A. Stable currency values, predictable
328. What is mercantilism outcomes for importers and exporters,
A. belief in the benefits of profitable trad- and reduced potential for speculative at-
ing tacks on the currency.

B. more harsh communism B. Increased volatility in currency values,

uncertainty for importers and exporters,
C. a better government and potential for speculative attacks on
D. omar the currency.

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1.1 POLITICAL ECONOMY 41

C. Decreased volatility in currency val- 337. What is the name for an authoritarian
ues, certainty for importers and ex- government that owns all property and
porters, and no potential for speculative makes all economic decisions for its citi-

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attacks on the currency. zens?
D. Lower exchange rate risk, increased
stability for importers and exporters, and
reduced potential for currency manipula-
tion.
333. What is the purpose of a portfolio invest-
ment?
A. To acquire controlling positions in do-
mestic firms or joint ventures.
B. To earn a return or grow in value over
time through passive ownership of assets. A. constitutional monarchy
C. To actively manage ownership of as- B. communism
sets in foreign countries.
C. theocracy
D. To develop a multinational presence in
D. plutarchy
foreign markets.
334. is where political power is monopo- 338. The curve below is double-peaked
lized by a party, group, or individual that
governs according to religious principles.
A.
A. Communist totalitarianism
B. Tribal totalitarianism
C. Theocratic totalitarianism
D. Right-wing totalitarianism
B.
335. What is regionalism in the context of
IPE?
A. The pursuit of political integration
339. What is the practice of a government col-
within a specific geographical region.
lecting money from its citizens to pay for
B. The pursuit of culture integration public services?
within a specific geographical region.
A. Market
C. The pursuit of social integration within
a specific geographical region. B. Black Market
D. The pursuit of economic integration C. Taxation
within a specific geographical region. D. Surplus Value
336. Economic growth is the ability of the econ- 340. Political system refers to:
omy to produce increasing quantities of
A. the set of structures and processes
goods and services
that guides the allocation of scarce re-
A. True sources and shapes the conduct of busi-
B. False ness activities in a nation

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1.1 POLITICAL ECONOMY 42

B. the system of government in a nation B. The relationships among the world’s

C. the rule of man state governments and the connection of
those relationships with other actors
D. the rules that regulate behavior along
C. The types of actions that states take
with the processes by which the laws are
toward each other through time
enforced and through which redress for
grievances is obtained D. Distinct spheres of international ac-
tivity within which policy makers of vari-
341. All is an example of political goals except ous states face conflicts and sometimes

NARAYAN CHANGDER
achieve cooperation
A. peace and order
345. I may be excused from assignments I
B. alleviation of poverty miss IF I am not able to access my Email?
C. quality education A. No
D. unpleasant sanitation B. Yes
C. Sometimes
342. Discuss the functions of the World Bank
in the context of international political D. If I have a good excuse
economy.
346. Majority voting can be said to work well
A. The World Bank’s main function is to if it can convert the aggregation of individ-
promote consumerism in developing coun- ual preferences into a consistent social de-
tries cision. To be consistent, the individual ag-
B. The World Bank focuses on providing gregation must fulfill three things, namely
military aid to developing countries (Checklist 3 things below)
C. The World Bank is responsible for reg- A. Dominance (Dominance)
ulating international trade agreements B. Transitivity (completeness)
D. The World Bank provides financial and C. Independence of irrelevant alterna-
technical assistance to developing coun- tives (free from irrelevant alternatives)
tries, conducts research and analysis on D. Independence of relevant alternatives
global economic issues, and promotes (bebas dari alternatif yang relevan)
sustainable development.
347. Specific tariffs are:
343. Where the leaders are elected by a major-
ity of the people in the country in a vote. A. levied as a proportion of the value of
theimported good.
A. Democracy
B. government payment to domestic pro-
B. Anarchy ducers.
C. Dictatorship C. in the form of manufacturing or pro-
D. Monarchy duction requirements of goods
D. levied as a fixed charge for each unit
344. What are issue areas in international re- of a goodimported
lations?
A. The study of the politics of trade, mone- 348. An absolute monarchy is a country where
tary, and other economic relations among
nations A. the leader is elected by the rich people

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1.1 POLITICAL ECONOMY 43

B. the leader is the oldest child of the rul- B. Horizontal FDI involves acquiring a
ing family complementary business in another coun-
try, while vertical FDI involves the same

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C. the leader is the oldest son of the pre-
vious King type of business operation in a foreign
country.
D. the leader is the oldest child of the pre-
C. Horizontal FDI involves acquiring a
vious king and has all the power to make
complementary business in another coun-
any rules they like
try, while vertical FDI involves investing in
349. Governments do not always act in the unrelated businesses.
national interests when they intervene in D. Horizontal FDI involves investing in un-
the economy; politically important interest related businesses, while vertical FDI in-
groups often influence them. volves the same type of business opera-
A. True tion in a foreign country.
B. False 354. What role do multinationals play in global
trade?
350. Conservative beliefs are most likely
aligned with which political party? A. They play a significant role by invest-
ing in foreign markets, creating jobs, and
A. Democratic Party facilitating the exchange of goods and ser-
B. Green Party vices across borders.
C. Republican Party B. They hinder the exchange of goods and
services across borders
D. Liberal Party
C. They have no impact on global trade
351. Collectivism stresses D. They only focus on domestic markets
A. primacy of individual goals
355. What is trade liberalization and how
B. primacy of collective goals does it relate to globalization?
C. individual freedom A. Trade liberalization is the implementa-
D. private ownership tion of strict regulations on the free ex-
change of goods between nations, and it
352. A “developing” or non-industrialized relates to globalization by promoting eco-
country. nomic stagnation and limited market ac-
A. Welfare State cess.

B. Lass Developed Countries B. Trade liberalization is the removal or

reduction of restrictions on the free ex-
C. Dependency Theory change of goods between nations, and it
D. Economic Equality relates to globalization by promoting the
integration of economies and the flow of
353. What is the main difference between hor- goods, services, and investments across
izontal FDI and vertical FDI? borders.
A. Horizontal FDI involves the same type C. Trade liberalization is the process of
of business operation in a foreign country, creating more barriers to trade between
while vertical FDI involves investing in un- nations, and it relates to globalization by
related businesses. promoting economic self-sufficiency.

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1.1 POLITICAL ECONOMY 44

D. Trade liberalization is the increase of 360. What is the difference between ethics
restrictions on the free exchange of goods and moral values?
between nations, and it relates to global- A. Ethics means society’s concept of right
ization by promoting isolationism and pro- and wrong, Morals are personal beliefs.
tectionism.
B. Ethics are personal beliefs. Morals are
356. Discuss the relationship between migra- society’s concept of right and wrong.
tion and foreign direct investment (FDI). C. Ethics are society’s concept of per-

NARAYAN CHANGDER
A. FDI has no influence on migration sonal beliefs. Morals are society’s con-
cept of right and wrong.
B. Migrants decrease FDI in the host
country D. Ethics are personal concepts. Morals
are right and wrong through society.
C. Migrants often contribute to the labor
force in the host country, attracting FDI 361. How do multinational corporations con-
from multinational corporations seeking tribute to sustainable development in de-
skilled workers or new markets. veloping countries?
D. Migrants have no impact on FDI A. By bringing in foreign direct invest-
ment, creating job opportunities, transfer-
357. Which of the pairings are opposites of ring technology and knowledge, and stim-
each other? ulating competition in the local market.
A. capitalism and communism B. By increasing poverty and income in-
equality
B. socialism and communism
C. By exploiting natural resources and
C. mercantilism and capitalism causing environmental degradation
D. communism and mercantilism D. By promoting corruption and unethical
business practices
358. What kind of economic system is Vietnam
following? 362. What is a central bank?
A. A pure command economy A. A national bank that controls the finan-
cial services of country’s government
B. A pure market economy
B. A bank that is located at the center of
C. A mixed economy a country
D. none of above C. A bank that citizens can open bank ac-
counts with
359. What does the Human Development In-
dex (HDI) measure? D. A bank that controls the money of big
companies
A. Total market value of goods and ser-
vices produced in a country 363. Under which political-economic system is
private property fully nationalized?
B. Level of economic development
A. Social democracy
C. Amount of economic inequality in a so-
ciety B. Communism

D. Standard of living, income, health, and C. Mercantilism

education D. Liberalism

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1.1 POLITICAL ECONOMY 45

364. If you attend a co-curricular activity for 368. Are they topics of interest to political
this course WHEN must you submit your economy?
write-up to Canvas

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A. when I get around to it
B. before the end of the semester
C. whenever I can
D. within 48 hours after attending the co-
curricular
365. If USA citizens do not like the job an
A. Agricultural and Food
elected representative is doing, what can
they do to show that they have the ulti- B. Architecture
mate power?
C. Sports
D. Market

369. Preferences with only a single local max-

imum or peak, so that Majority Voting can
work are called
A. not vote for that person in an election
B. re-elect that person A. Single-peaked preference
B. Double-peaked preference
366. What are some of the regulations im-
posed on multinationals in the interna- C. Median Voter Theorem
tional economy?
D. Lindahl Pricing
A. Exemption from environmental regula-
tions 370. The value of goods is determined by?
B. Adherence to international trade laws A. scarcity of goods on the market
and regulations
B. supply and demand relations of goods
C. Unrestricted access to resources in the market
D. No requirement to follow labor laws
C. social labor of commodity producers
367. The following is true regarding the Me- D. uses of the goods
dian Voter Theorem
A. If preferences are single peaked, then 371. The first U.S. legislation to authorize
the decision results will lead to the deci- “adjustment assistance” for workers dis-
sion of the median voter. placed by tariff reductions was the
B. Efficiency will only be achieved if the A. Reciprocal Trade Agreements Act of
social marginal benefit is the same as the 1934.
private marginal benefit
B. Trade Expansion Act of 1962.
C. Median Voter Theorem is the best sce-
nario compared to Lindahl Pricing C. Trade Act of 1974
D. Lindahl Pricing is an ideal scenario D. Omnibus Trade and Competitiveness
compared to Median Voter Act of 1988.

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1.1 POLITICAL ECONOMY 46

372. was a key opponent of mercantilism. 377. is the belief in the superiority of one’s
own ethnic group or culture.
A. Adam Smith
A. Power distance
B. John Maynard Keynes
B. Ethnocentrism
C. David Bacardi
C. Uncertainty avoidance
D. David Rizzio
D. Dynamism
373. What role does the media play in the po-

NARAYAN CHANGDER
litical system? 378. What are the advantages and disadvan-
tages of trade liberalization in the context
A. inform voters on the issues of international political economy?
B. a watchdog for the public A. The advantages of trade liberalization
C. some media can promote their own include increased economic growth, lower
agenda prices for consumers, and access to a
wider variety of goods. However, the dis-
D. all of these are true advantages include potential job losses,
income inequality, and vulnerability to
374. Which political-economic system focuses
global economic shocks.
on the needs of the state and uses an ac-
tive industrial policy? B. Stagnant economy, reduced consumer
choices, and increased job security
A. Social democracy
C. Lower economic growth, higher prices
B. Communism for consumers, and limited access to
C. Mercantilism goods
D. Liberalism D. Increased job opportunities, higher in-
come for workers, and reduced competi-
375. The World Trade Organization tion
A. prevents each member country from 379. In which of the following economies
adopting its own trade policy objectives. would the government be most likely to
B. is charged with implementing the take into state ownership troubled firms
agreements reached in the Uruguay whose continued operation is thought to
Round of trade negotiations be vital to national interests?
C. requires its member countries to elim- A. market economies
inate all barriers to imports B. open economy
D. requires its member countries to C. laissez-faire economies
adopt common labor standards with re-
D. mixed economies
spect toand wages working conditions.
380. Social expenditures are a measure of the
376. Which are international institutions? extent to which countries assume respon-
A. European Union sibility for supporting the standard of liv-
ing of disadvantaged or vulnerable groups.
B. TNCs
Which of the following terms matches with
C. MicroRegional this definition?
D. none of above A. Direct in-kind goods and services

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1.1 POLITICAL ECONOMY 47

B. president A. Diverting trade from non-member

C. prime minister countries and reducing market access.

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B. Limiting market competition, protect-
D. doge
ing domestic industries, and enforcing
381. Dimensions assessed in political system trade barriers
are C. Enhancing economic efficiency, pro-
A. collectivism moting political cooperation, and increas-
ing market access.
B. individualism
D. Promoting political cooperation and
C. democratic decreasing economic interdependence.
D. totalitarian
385. To perfect the ownership institution in the
382. What does political economy mean? socialist-oriented market economy in Viet-
nam, how many contents need to be imple-
A. Taxes on foreign goods imported
mented?
B. The ways in which politics and policy A. 4
making interact with the economy.
B. 6
C. The degree to which individuals and
private firms are free to own property C. 7
without interference from the state. D. 5
D. Ownership of goods and services 386. What sector plays a significant role in the
UK economy, particularly in London?
383. What are the viewpoints and solution ori-
entations to resolve the relationship be- A. Manufacturing
tween economic growth associated with B. Financial sector
achieving progress and social justice in our
C. Healthcare
country?
D. Agriculture
A. Economic growth is the material con-
dition that ensures progress and social 387. The field of international political econ-
justice; Progress and social justice are omy:
the driving forces for high and stable eco- A. Examines the relationship between na-
nomic growth. tional and international politics
B. Economic growth, progress, and social B. Examines the relationship between
justice are two key factors of sustainable economics and politics
development.
C. Draws upon disciplines such as his-
C. Economic growth is associated with tory, political science, economics, and so-
cultural development, ensuring human ciology
rights and protecting the environment.
D. All of the above
D. There is no absolute justice and it is
necessary to abolish egalitarianism. 388. What are nonstate actors in international
relations?
E. All the answers above
A. Actors other than state governments
384. What are the main motives behind the that operate either below the level of the
formation of regional trade agreements? state or across state borders

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1.1 POLITICAL ECONOMY 48

B. The relationships among the world’s a civil law system a judge has the power
state governments and the connection of only to apply the law.
those relationships with other actors
392. Political Economy consist of:
C. The types of actions that states take
A. Political system
toward each other through time
B. Social system
D. Distinct spheres of international ac-
tivity within which policy makers of vari- C. Economic system
ous states face conflicts and sometimes D. Legal system

NARAYAN CHANGDER
achieve cooperation
393. What is the definition of international re-
389. What is the purpose of the International lations (IR)?
Criminal Court (ICC)? A. The study of the politics of trade, mone-
A. To hear cases on genocide, war tary, and other economic relations among
crimes, and crimes against humanity nations
B. To restrict biological weapons re- B. The relationships among the world’s
search state governments and the connection of
those relationships with other actors
C. To outlaw the testing of nuclear
weapons C. The types of actions that states take
toward each other through time
D. To decrease the number of strategic
nuclear weapons D. Distinct spheres of international ac-
tivity within which policy makers of vari-
390. A grants the inventor of a new prod- ous states face conflicts and sometimes
uct or process exclusive rights for a de- achieve cooperation
fined period of time to the manufacture,
394. Discuss the role of multinational corpora-
use, or sale of that invention.
tions in shaping global supply chains and
A. copyright its implications for international political
B. trademark economy.
C. contract A. International political economy is not
affected by multinational corporations
D. patent
B. Multinational corporations play a sig-
391. A common law system is different from nificant role in shaping global supply
a civil law system because: chains and have implications for interna-
A. a common law system is based on re- tional political economy.
ligious teachings, while a civil law system C. Global supply chains are not influ-
is based on cultural traditions. enced by multinational corporations
B. a common law system is very rigid, D. Multinational corporations have no im-
while a civil law system tends to be more pact on global supply chains
flexible.
395. Example leader(s) of totalitarianism:
C. a common law system is very rigid,
A. Adolph Hitler
while a civil law system tends to be more
flexible. B. Benito Mussolini
D. in a common law system a judge has C. Mahathir Mohamad
the power to interpret the law, while in D. Najib Razak

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1.1 POLITICAL ECONOMY 49

396. The concept of “results-based” trade pol- 401. What is reciprocity?

icy A. A principle for solving collective goods

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A. is embodied in the “new reciprocity” problems by imposing solutions hierarchi-
approach to policy cally
B. is consistent with GATT codes and B. A response in kind to another’s actions
guidelines. C. A tangible or intangible good, created
C. is encouraged by policymakers who by the members of a group, that is avail-
want the government to be less involved able to all group members regardless of
in managing trade their individual contributions
D. is encouraged by those who feel that D. A principle for solving collective goods
government allocation of resources is problems by changing participants’ prefer-
less efficient than market allocation of re- ences based on their shared sense of be-
sources. longing to a community

397. What is utility? 402. How does labor migration impact the
economies of both sending and receiving
A. The income of a person
countries?
B. The level of happiness or satisfaction A. It can impact the economies by reduc-
of a person ing unemployment and increasing remit-
C. The usefulness of a person tances in sending countries, and filling
D. The skills and abilities of a person labor shortages and contributing to eco-
nomic growth in receiving countries.
398. Example of country (s) that practices col- B. It leads to increased unemployment in
lectivism both sending and receiving countries
A. China C. It has no impact on the economies of
B. India either sending or receiving countries
C. USA D. It causes a decrease in remittances
in sending countries and worsens labor
D. Japan shortages in receiving countries
399. Who are the non-state actors groups? 403. When the government has control of the
A. Parties means of production in the country.
B. Local Government A. capitalism
C. Business Corporate B. mercantilism
D. none of above C. socialism
D. communism
400. Which indicator measures the amount of
economic inequality in a society? 404. Which idea is not a solution to limit waste
A. Gross Domestic Product (GDP) of national resources, manage, exploit and
use natural resources appropriately:
B. Human Development Index (HDI)
A. Promote propaganda, education, and
C. Gini Index raise awareness of the role, importance,
D. Purchasing Power Parity (PPP) and requirements for rational, effective,

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1.1 POLITICAL ECONOMY 50

and sustainable exploitation and use of 408. government decisions that encourage eco-
natural resources nomic growth are considered expansion-
B. Mineral resources are still exploited ary policies
fragmentarily, small-scale, and illegally; A. True
Exploitation and processing technology is B. False
still outdated and slow to innovate
C. Encourage and promote investment, 409. Question 5:Of the distribution principles
innovation, and application of clean, high below, which one is the most important in

NARAYAN CHANGDER
technology, and environmentally friendly our country today?
technology in resource exploitation and A. Distribution according to labor.
processing industries B. Distribution according to labor value.
D. Accelerate the process of transform- C. Distribution according to production
ing industry structure, regional structure, and business results.
and economic sector structure on the ba-
sis of promoting advantages of geograph- D. Distribution according to capital or as-
ical location and renewable resources sets.

410. Small groups may gain at the expense of

405. How do multinational corporations con-
the majority when
tribute to the global economy?
A. voters perceive that there are costs as-
A. By promoting fair trade and ethical
sociated with voting.
business practices
B. small group solidarity is high and there
B. By focusing only on local supply chains
is little “free-riding” within the groups
C. By investing in foreign markets, creat- C. the expected consumer benefits from
ing jobs, and facilitating the exchange of the policies are small on an individual ba-
goods and services across borders sis.
D. By hindering the exchange of goods D. all of the above
and services across borders
411. When the value of currency increases and
406. Political power is monopolized by a party, the price of goods and services decreases,
group, or individual that governs according what is that called?
to religious principles.This refer to:
A. inflation
A. Communist Totalitarianism
B. hyperinflation
B. Tribal Totalitarianism
C. deflation
C. Theocratic Totalitarianism
D. regulation
D. Right-Wing Totalitarianism
412. The Japanese government was pressur-
407. Political economy consist of ized place limits on the number of vehicles
exported to the United States by Japanese
A. political system
automobile producers in 1981. This is an
B. economic system example of:
C. social system A. tariff rate quota
D. legal system B. specific tariff

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1.1 POLITICAL ECONOMY 51

C. voluntary export restraint B. Lack of education, strong infrastruc-

D. to the tariff value ture, stable political environment, and cul-
tural similarities

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413. Legal system refers to: C. Political instability, corruption, lack of
A. the set of structures and processes infrastructure, and cultural differences
that guides the allocation of scarce re- D. High level of education, strong infras-
sources and shapes the conduct of busi- tructure, stable political environment, and
ness activities in a nation cultural similarities
B. the system of government in a nation 417. In what year did Vietnam join the ASEAN
C. the rule of man free trade area (AFTA)?
D. the rules that regulate behavior along A. 1995
with the processes by which the laws are B. 1996
enforced and through which redress for
C. 1997
grievances is obtained
D. 1998
414. Question 3:What is the top goal of devel-
oping a market economy in Vietnam? 418. GDP includes the sale of intermediate
goods and excludes the sale of final goods.
A. Accelerate industrialization and mod-
ernization, soon close the gap in economic A. True
lag compared to developed countries. B. False
B. Liberate production capacity, mobilize 419. The amount of goods or services avail-
all resources to promote industrialization able is called?
and modernization of the country, and im-
A. supply
prove socio-economic efficiency.
B. demand
C. Restructuring the economy in a rea-
sonable, modern and highly efficient direc- C. producer
tion. D. consumer
D. Both a, b and c. 420. What is a common result of poverty exac-
erbating tensions between different ethnic
415. NICs is an acronym used to refer to which
and religious communities?
country?
A. Human rights violations
A. old countries
B. Economic growth and spread of capi-
B. new countries talism
C. developed countries C. Environmental problems and epidemic
D. slow countries pt diseases
D. Cooperation with allies and use of non-
416. What are some of the challenges faced by
military instruments
multinationals in promoting economic de-
velopment in developing countries? 421. An economic nationalist believes that re-
A. Low level of education, weak infras- lations between states are:
tructure, unstable political environment, A. Not as important as relations between
and lack of cultural differences firms

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1.1 POLITICAL ECONOMY 52

B. Not as important as class conflict the analysis of international political econ-

C. A plus or positive sum game omy.
D. A zero-sum game C. The environmental consequences of
global supply chains and their effects on
422. How does the exchange rate regime af- international political economy should be
fect a country’s trade balance and eco- examined through a comprehensive analy-
nomic stability? sis of resource extraction, transportation
A. It can affect a country’s trade bal- emissions, and waste generation.

NARAYAN CHANGDER
ance and economic stability by influencing D. The environmental consequences of
the competitiveness of its exports and im- global supply chains are insignificant and
ports, as well as the level of exchange rate have no impact on international political
volatility. economy.
B. It has no impact on trade balance and
economic stability 426. What important role does the UN play in
promoting peace and security?
C. It only affects the stock market
A. Serving as a forum for negotiations re-
D. It leads to increased government sulting in treaties
spending
B. Handling regional peacekeeping ef-
423. In , certain sectors of the economy are forts
left to private ownership and free market
C. Creating a permanent International
mechanisms while other sectors have sig-
Criminal Court
nificant state ownership and government
planning. D. All of the above
A. market economies
427. Which one of these is not an example of
B. command economies public goods?
C. mixed economies A. Streetlights
D. soft economies B. Bridges
424. Antitrust laws in the United States are C. Private school
designed to: D. Lighthouses
A. restrict agricultural subsidies
428. In a welfare state, what is the main role
B. increase trade barriers.
of the state/government?
C. outlaw monopolies.
A. To increase taxes to pay for social ex-
D. restrict privatization. penditures.
425. Examine the environmental consequences B. To protect and promotes the economic
of global supply chains and their effects on and social well-being of the citizens.
international political economy.
C. To abolish all local governments and
A. Global supply chains have no effect on become a Unitary state.
resource extraction, transportation emis-
D. None of the above.
sions, and waste generation.
B. The environmental consequences of 429. In IPE, it has been said that the “winner
global supply chains can be ignored in takes it all” which means that whoever

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1.1 POLITICAL ECONOMY 53

tops has all of the perks in coping the dy- A. direct democracy
namic globalization.
B. representative democracy
A. True

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B. False 433. What is property?
430. Many of the ethical issues and dilem- A. goods or services owned by a group
mas in international business are rooted in B. goods or services owned by individuals
the fact that vary/varies significantly
from nation to nation. C. interactions between supply and de-
mand
A. political systems
B. law D. balance of economic freedom and
equality
C. economic development
D. culture 434. Former colonies of the developing world
E. All of these answers are correct. were made dependent on their former colo-
nial masters for economic markets and
431. What has been the growing emphasis in products
recent years in the United Kingdom?
A. Import quotas
A. Promoting international trade
B. Addressing income inequality B. Dependency theory
C. Reducing unemployment C. Developed countries
D. Expanding military capabilities D. Microeconomics
432. In which type of democracy do citizens
elect leaders to represent their interests? 435. is the collective term for the legal
rights relating to the use to which a re-
source is put and over the use made of any
income that may be derived from that re-
source.
A. Trade rights
B. Property rights
C. Positive rights
D. Common rights

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