Test Bank for International Political

Test Bank for International Political Economy, 7e Thomas Oatley (All Chapters)

CHAPTER 1: International Political Economy

Multiple Choice Questions

• International Political Economy (IPE) primarily studies
• the political battle between nation-states.
• the economic battle between producers and consumers.
• how the consequences of global economic exchange generate political winners and

losers in national and international arenas.

• how the consequences of global political change generate new technologies.
• how the consequences of global economic change generate new political cultures.

Answer: c

• The distributive consequences of global economic exchange
• raises the incomes of all people in developed countries.
• eliminate political competition in national arenas.
• eliminate political competition in international arenas.
• generate political competition in national and international arenas.
• lowers the income of all people in developing countries.

Answer: d

• Car and light truck production throughout the world fell sharply in 2020 largely

due to

• pandemic-related issues in the global semiconductor chip industry.
• lobbying by workers in American computer firms.
• oil prices by foreign producers.
• prices by American auto manufacturers.
• wages by foreign semiconductor firms.

Answer: c

• The study of the global economy does NOT usually include the study of
• the international trade system.
• the international monetary system.
• multinational corporations.
• economic development. 1 / 4

• scientific development.

Answer: e

• In 2020 (before the pandemic) the trade of goods and services across national

borders each year is worth

• around $15 trillion.
• around $20 trillion.
• around $25 trillion.
• around $30 trillion.
• around $35 trillion

Answer: c

• The international monetary system primarily facilitates
• the international exchange of national currencies.
• the national exchange of international currencies.
• the interest rates of national currencies.
• the international regulation of economic foreign aid.
• the international regulation of foreign direct investment.

Answer: a

• Multinational corporations account for
• 1/4 of the world’s economic production & 1/4 of the world’s trade.
• 1/4 of the world’s economic production & 1/3 of the world’s trade.
• 1/2 of the world’s economic production & 1/2 of the world’s trade.
• 1/2 of the world’s economic production & 3/4 of the world’s trade.
• 3/4 of the world’s economic production & 1/2 of the world’s trade.

Answer: b

• Economic development strategies in the post WWII era in developing countries
• have been largely unsuccessful in the newly industrializing countries of East Asia.
• have been largely successful in the developing countries of East Africa.
• have been largely successful in the newly industrializing countries of East Asia.
• have been largely successful in all developing countries.
• have been largely unsuccessful in all developing countries.

Answer: c

• Welfare consequences about resource allocation decisions 2 / 4

• determine the level of societal well-being in a country.
• influence how income is distributed between nations in the international system.
• influence how income is distributed between groups within countries.
• are determined by the national attitudes toward hard work.
• determine the level of democratic participation in a country.

Answer: a

• Distributional consequences about resource allocation decisions
• are determined by the level of societal well-being in a country.
• determine how prestige is distributed in the international system.
• influence how income is distributed between groups within countries.
• are determined by the distribution of national attitudes toward hard work.
• determine the level of democratic participation in a country.

Answer: a

• Explanatory studies are primarily oriented toward explaining
• who make foreign economic policy choices in governments?
• how governments make foreign economic policy choices.
• when governments make foreign economic policy choices.
• where governments make foreign economic policy choices.
• why governments make foreign economic policy choices.

Answer: e

• Evaluative studies are NOT oriented toward
• assessing policy outcomes

b making judgments about policy outcomes

• proposing alternatives when the judgment made about a particular policy is a

positive one

• proposing alternatives when the judgment made about a particular policy is a

negative one.

• assessing policy costs and benefits

Answer: c

• The idea that the purpose of economic activity was to enrich individuals, not to enhance a

state’s power was most strongly held by the

• liberalism school of international political economy.
• conservatism school of international political economy.
• mercantilist school of international political economy. 3 / 4

• Marxism school of international political economy.
• realist school of international political economy.

Answer: a

• The Marxist school of international political economy primarily does NOT believe

that

• the state operates as an agent of the capitalist class.
• investment decisions are made by the few firms that control the investment

capital.

• capitalism is associated with a growing rate of profit.
• capitalism is plagued by an imbalance between the ability to produce goods

and the ability to purchase goods.

• large corporations are the key factor in determining how resources are used.

Answer: c

• The three different schools generate three very different images of the central

dynamic of IPE. Which of the following is true?

• Mercantilists argue that welfare conflicts occur in the IPE when governments

compete to attract and maintain desired industries.

• Liberals argue that international economic interactions are essentially

conflictual because some countries benefit from international trade more than others.

• Marxists argue that the IPE is characterized by the distributional conflict

between classes within countries.

• Marxists argue that the IPE is characterized by the distributional conflict

between developed and developing countries within the international arena.

• Liberals argue that international economic conflicts are common because

governmental regulation.

Answer: c

• Interests are the goals or policy objectives that the central actors in the political and

economic system want to use foreign economic policy to achieve. Which scenario appropriately captures “interests”?

• If you are an American lumber worker, you oppose lumber tariffs because it

reduces the likelihood that you will lose your job.

• If you own a substantial share of lumber company stock you will support a

lumber tariff because higher lumber prices will produce higher profits.

• If you own a substantial share of lumber company stock you will support a

lumber tariff because lower lumber prices will produce lower profits.

• If you are an American lumber worker, you oppose lumber tariffs because it

increases the likelihood that you will lose your job.

• / 4