International Political Economy Quizzes: Test Your Knowledge

Question 1

Which assumption is fundamental to the comparative advantage theory of trade?

Accepted Answer

Trade promotes specialization and exchange, resulting in benefits.

Answer

All countries produce goods at equal costs.

Answer

Trade always improves welfare for all nations.

Answer

Countries should prioritize producing goods with an absolute advantage.

Question 2

According to the theory of comparative advantage, which principle leads to economic prosperity for countries?

Accepted Answer

Specializing in producing goods they can produce most efficiently, even if others can do so more efficiently

Answer

Producing goods where they have the highest absolute advantage

Answer

Producing all necessary goods domestically to achieve self-sufficiency

Answer

Trading only with nations at similar economic development levels

Question 3

Which theory of international political economy posits that economic interdependence promotes cooperation and diminishes the likelihood of conflict between nations?

Accepted Answer

Liberalism

Answer

Mercantilism

Answer

Marxism

Answer

Realism

Question 4

According to the theory of comparative advantage, why do countries engage in international trade?

Accepted Answer

To produce and export goods where they have the lowest opportunity cost.

Answer

To maximize their total production of all goods.

Answer

To minimize their production costs for all goods.

Answer

To protect their domestic industries from foreign competition.

Question 5

In line with the theory of comparative advantage, which goods and services should countries focus on producing and exporting?

Accepted Answer

Those they have a comparative advantage in producing

Answer

Those they can produce with the lowest absolute costs

Answer

Those with high domestic demand and low production costs

Answer

Those heavily subsidized by the government

Question 6

In international political economy, what term describes the growing interconnectedness of national economies across borders?

Accepted Answer

Globalization

Answer

Power

Answer

Sovereignty

Answer

Economic interdependence

Question 7

In the theory of comparative advantage, which principle determines the goods a country should focus on producing and exporting?

Accepted Answer

Relative cost advantage

Answer

Absolute cost advantage

Answer

Government subsidies

Answer

Balanced trade

Question 8

The core assumption of the theory of comparative advantage is that:

Accepted Answer

Countries should focus on producing goods where they have the lowest opportunity cost.

Answer

All countries will always gain from international trade.

Answer

Government protection is essential to shield domestic industries from foreign competition.

Answer

The value of a good is solely determined by the labor needed to produce it.

Question 9

Which of the following statements most accurately describes a key characteristic of the international political economy?

Accepted Answer

The international political economy is defined by interdependence, competition, and the influence of economic factors on political outcomes.

Answer

Non-state actors solely determine international economic relations.

Answer

Political factors hold more significance than economic factors in shaping international relations.

Answer

States are the exclusive participants in the international political economy, unaffected by external influences.

Question 10

Which theory in international political economy emphasizes that states prioritize power and security, heavily influencing economic interactions between them?

Accepted Answer

Realism

Answer

Mercantilism

Answer

Liberalism

Answer

Marxism

Question 11

Which theory of international political economy posits that free trade enhances global economic efficiency and prosperity?

Accepted Answer

Liberal institutionalism

Answer

Mercantilism

Answer

Marxism

Answer

Realism

Question 12

What is a potential **disadvantage** of economic interdependence?

Accepted Answer

Increased vulnerability to external shocks

Answer

Increased trade and investment opportunities

Answer

Reduced risk of conflict

Answer

Greater access to technology and innovation

Question 13

In the classical theory of comparative advantage, countries should focus on producing and exporting goods and services where they:

Accepted Answer

Enjoy a comparative advantage

Answer

Possess an absolute advantage

Answer

Have the greatest abundance

Answer

Incur the lowest production costs

Question 14

Which of the following is a fundamental assumption of comparative advantage theory?

Accepted Answer

Countries have different production possibilities frontiers.

Answer

Factors of production are freely mobile between countries.

Answer

Consumers in all countries have identical tastes and preferences.

Answer

Countries produce all goods with the same efficiency.

Question 15

Which theory of international political economy posits that significant economic disparities between nations fuel global conflict and instability?

Accepted Answer

Marxism

Answer

Mercantilism

Answer

Liberalism

Answer

Realism

Question 16

Which concept is exclusive to International Political Economy (IPE)?

Accepted Answer

Interplay between domestic and international politics

Answer

Economic interdependence

Answer

Hegemony

Answer

Power and security

Question 17

Which concept is not considered a core principle in the field of International Political Economy?

Accepted Answer

Nationalism

Answer

Hegemony

Answer

Free trade

Answer

Interdependence

Question 18

According to Marxist theory, what is an inherent characteristic of the global capitalist system?

Accepted Answer

Exploitation and class struggle

Answer

Economic interdependence and cooperation

Answer

Harmonious distribution of resources and wealth

Answer

Peaceful coexistence and international collaboration

Question 19

Which of the following is a disadvantage of economic globalization?

Accepted Answer

Increased poverty and inequality.

Answer

Increased range of goods and services.

Answer

Faster and cheaper transportation.

Answer

Free movement of capital and labor.

Question 20

Which of the following is NOT a key concept in the theory of comparative advantage?

Accepted Answer

Absolute advantage

Answer

Specialization

Answer

Opportunity cost

Answer

Gains from trade

Question 21

In the theory of comparative advantage, which of the following is a primary benefit for countries that specialize in producing goods and services where they have a lower opportunity cost?

Accepted Answer

Increased efficiency and gains from trade

Answer

Reduced production costs and higher profits

Answer

Greater economic self-sufficiency and reduced reliance on imports

Answer

Enhanced national security and reduced risk of conflict

Question 22

Which statement does NOT represent a fundamental principle of mercantilism?

Accepted Answer

Advocating for unrestricted international trade

Answer

Accumulating precious metals (gold and silver)

Answer

Shielding domestic industries from foreign competition

Answer

Pursuing national economic self-reliance

Question 23

In the theory of comparative advantage, what is the main reason countries specialize in specific industries and engage in international trade?

Accepted Answer

Lower opportunity cost of production in certain industries

Answer

Absolute productivity advantage in all industries

Answer

Lower labor costs in certain industries

Answer

Access to abundant natural resources

Question 24

In Marxist theory, what is seen as a primary cause of conflict in the global political economy?

Accepted Answer

Unequal distribution of economic resources

Answer

Free trade policies

Answer

Increased protectionism

Answer

Expansion of democracy in international relations

Question 25

In the theory of comparative advantage, which concept emphasizes that countries should specialize in producing goods where they have a higher relative efficiency?

Accepted Answer

Specialization based on efficiency

Answer

Protection from competition

Answer

Equal wealth distribution

Answer

Economic self-sufficiency

Question 26

The theory of comparative advantage is based on which fundamental assumption?

Accepted Answer

Countries should specialize in producing goods they can make most efficiently.

Answer

Countries should aim for a positive trade balance by exporting more than they import.

Answer

Countries should shield domestic industries from foreign competition using tariffs and quotas.

Answer

The global economy is a zero-sum game, where one country's economic gains come at the expense of another.

Question 27

David Ricardo's theory of comparative advantage emphasizes specialization and free trade. Which of these concepts is **not** central to his theory?

Accepted Answer

Absolute advantage

Answer

Specialization

Answer

Free trade

Question 28

Which theory of international political economy advocates for protecting domestic industries from foreign competition?

Accepted Answer

Mercantilism

Answer

Liberalism

Answer

Marxism

Answer

Keynesianism

Question 29

What is a defining characteristic of imperialism?

Accepted Answer

Exploitation of colonies for economic gain

Answer

Fair trade between nations

Answer

Protection of local cultures

Answer

Spread of democracy

Question 30

In international political economy, what is a defining characteristic of hegemony?

Accepted Answer

Dominance by a state or group of states shaping the global economic order and its institutions

Answer

Sole reliance on military force to maintain economic control

Answer

Complete isolation and closure of the global economy

Answer

Unending and unchanging nature of dominance

Question 31

In international trade, the theory of comparative advantage suggests that countries should focus on producing and exporting goods and services where they have a:

Accepted Answer

Comparative advantage in production

Answer

Absolute advantage in production

Answer

Equal advantage in production

Answer

No advantage in production

Question 32

Which of the following is NOT a key characteristic of economic development in international political economy?

Accepted Answer

Uncontrolled exploitation of natural resources

Answer

Accelerated economic growth

Answer

Increased social mobility

Answer

Enhanced education and healthcare

Question 33

According to the theory of comparative advantage, which factor is not necessary for a country to gain from specialization and trade?

Accepted Answer

Self-sufficiency in all goods

Answer

Differences in production costs

Answer

Lack of trade barriers

Answer

Equal levels of economic development

Question 34

How does economic inequality contribute to conflict and political instability in the global economy?

Accepted Answer

Inequality can lead to social unrest and political mobilization, increasing the likelihood of conflict.

Accepted Answer

Inequality can reduce economic growth and development, making countries more vulnerable to political instability.

Answer

Inequality is unrelated to conflict and political instability, as it is a natural outcome of market economies.

Question 35

Which theory of international political economy emphasizes the role of power dynamics among nations in shaping the global economic system?

Accepted Answer

Realism

Answer

Mercantilism

Answer

Liberalism

Answer

Marxism

Question 36

How did imperialist expansion in the 19th and early 20th centuries differ from earlier forms of colonialism?

Accepted Answer

Imperialist expansion involved establishing formal political control over territories.

Answer

Imperialist expansion focused solely on economic exploitation.

Question 37

In accordance with the theory of comparative advantage, countries should specialize in producing:

Accepted Answer

Goods they can produce most efficiently, even if other countries can produce them with a lower absolute cost

Answer

Goods they can produce with the lowest absolute cost

Answer

Goods they have the most abundant resources for

Answer

Goods that are in high demand in the global market

Question 38

In the theory of comparative advantage, which statement holds true?

Accepted Answer

Nations should prioritize producing goods with a lower opportunity cost.

Answer

Free trade invariably benefits all involved nations.

Answer

Tariffs invariably harm the economy.

Answer

A nation's economic well-being is best measured by its balance of trade.

Question 39

What is a potential advantage of protectionism?

Accepted Answer

Shielding domestic industries from foreign competition

Answer

Lowering the overall cost of goods for consumers

Answer

Boosting the export competitiveness of domestic industries

Answer

Encouraging free and unrestricted trade between nations

Question 40

Which assumption underpins liberal economic theory in International Political Economy?

Accepted Answer

Free trade fosters economic growth and prosperity for all involved nations.

Answer

States should prioritize self-sufficiency and limit foreign trade.

Answer

International trade inevitably creates conflict, with both winners and losers.

Question 41

Critics argue that a key weakness of the neoliberal approach to international political economy is its:

Accepted Answer

Neglect of the influence of power dynamics and inequality on the global economy.

Answer

Overemphasis on the role of international institutions, resulting in a lack of adaptability to evolving global circumstances.

Answer

Advocacy for protectionist policies over free trade.

Question 42

In the context of international political economy, what is a defining characteristic of hegemony?

Accepted Answer

Dominant economic and political influence held by a single or a few nations in the global system

Answer

Equal distribution of power and resources among all nations

Answer

Absence of conflict and competition in the international economic sphere

Answer

Limited government involvement in economic matters

Question 43

Which of the following is a potential downside of free trade, according to the theory of comparative advantage?

Accepted Answer

Job losses in specific industries in certain countries

Answer

Decline in overall economic growth

Answer

Increased income inequality within countries

Answer

Undermining of national security

Question 44

Which characteristic is NOT a feature of the liberal theory of international political economy?

Accepted Answer

Government intervention in the economy

Answer

Free trade

Answer

Interdependence and cooperation

Answer

Support for international organizations

Question 45

Which concept lies outside the core focus of International Political Economy?

Accepted Answer

Nuclear disarmament

Answer

Economic interdependence

Answer

Comparative advantage

Answer

Hegemony

Question 46

Which of these is a fundamental concept in the liberal theory of international political economy?

Accepted Answer

Comparative advantage

Answer

Economic nationalism

Answer

Polypolarity

Answer

Hegemony

Question 47

How does trade liberalization affect labor markets in developed countries? Discuss the potential advantages and challenges for workers and industries.

Accepted Answer

Increased competition and job losses in low-skill sectors, but new opportunities in high-skill sectors.

Answer

Benefits workers in developing countries more than in developed countries.

Answer

Always leads to lower wages and higher unemployment in developed countries.

Answer

Has no significant impact on labor markets in developed countries.

Question 48

Which of the following is NOT considered one of the primary theories of international political economy?

Accepted Answer

Cognitive Psychology

Answer

Constructivism

Answer

Mercantilism

Answer

Liberal Institutionalism

Question 49

Which school of thought in international political economy emphasizes the importance of state intervention and protectionist measures?

Accepted Answer

Mercantilism

Answer

Liberal Institutionalism

Answer

Marxism

Answer

Dependency Theory

Question 50

What is the main ethical challenge that multinational corporations face when operating in developing countries?

Accepted Answer

Balancing profit with environmental and social concerns

Answer

Managing cultural differences and diverse employees

Answer

Following host country laws while meeting international standards

Answer

Avoiding political interference and local conflicts

Question 51

Which assumption does mercantilism explicitly reject?

Accepted Answer

Free markets promote economic growth.

Answer

Wealth is measured in the accumulation of gold and silver.

Answer

States should promote domestic production and exports.

Answer

International trade is a zero-sum game.

Question 52

What potential consequence can economic inequality have?

Accepted Answer

Political instability

Answer

Political stability

Answer

No clear relationship with political stability

Answer

Always promotes political stability

Question 53

According to the tenets of liberalism, what is the primary driver of economic growth in the international sphere?

Accepted Answer

Advancements in technology

Answer

Intervention by the state

Answer

Protectionist policies

Answer

Territorial expansion through military conquest

Question 54

What is the term used to describe the set of economic policies advocated by the World Bank and the International Monetary Fund?

Accepted Answer

Washington Consensus

Answer

Beijing Consensus

Answer

European Consensus

Answer

United Nations Development Agenda

Question 55

Which of the following is considered a key element of 'soft power' in international relations?

Accepted Answer

Diplomatic skills

Answer

Military prowess

Answer

Imposition of economic sanctions

Answer

Abundance of natural resources

Question 56

Which of the following is a key limitation of qualitative research methods in international political economy?

Accepted Answer

Allows for generalization to a wider population

Answer

Provides in-depth understanding of complex phenomena

Answer

Useful for studying sensitive or controversial topics

Answer

Facilitates causal analysis

Question 57

How do international political economy theories help us understand policy responses to global challenges like climate change?

Accepted Answer

By providing a framework for analyzing power dynamics and resource distribution in the global system.

Answer

By offering specific policy solutions for addressing global challenges.

Answer

By promoting a particular ideological viewpoint on global challenges.

Question 58

Which of the following is a fundamental principle of mercantilism?

Accepted Answer

Accumulating precious metals and maintaining a favorable balance of trade

Answer

Expanding international trade through free and open markets

Answer

Government regulation of the economy to promote social equity

Question 59

The theory of comparative advantage is primarily associated with which school of thought in international political economy?

Accepted Answer

Classical liberalism

Answer

Keynesianism

Answer

Marxism

Answer

Realism

Question 60

From a Marxist perspective, one of the primary criticisms of globalization is:

Accepted Answer

The exploitation of workers in developing countries

Answer

The spread of democracy and human rights

Answer

Reduced barriers to trade and increased economic efficiency

Answer

Increased global prosperity and living standards

Question 61

What is the central focus of international political economy as a field of study?

Accepted Answer

The interrelationship between politics and economics in the international system

Answer

The role of international organizations in global governance

Answer

Domestic economic policies and their impact on the global economy

Question 62

Which of the following is a key characteristic of the contemporary global financial system?

Accepted Answer

Interconnectedness and interdependence among national economies

Answer

Strict government control and regulation

Answer

Regionalization and the formation of closed economic blocs

Answer

Complete isolation of national financial markets

Question 63

What is the primary function of the World Trade Organization (WTO)?

Accepted Answer

To regulate international trade by establishing rules and resolving disputes

Answer

To promote world peace and understanding

Answer

To combat terrorism and promote global security

Answer

To provide humanitarian aid to developing countries

Question 64

Which factor has played a significant role in driving the process of globalization?

Accepted Answer

Advancements in transportation, communication, and technology

Answer

Growing nationalism and isolationist tendencies

Answer

Increased government protectionism and trade barriers