Quiz 2-PolSci369

A top government minister in which country said that Greece should leave the EU? a) Germany b) Italy c) Austria d) Belgium

a) Germany

Which term refers to a process in which investors quickly shift their funds out of a nation in search of a "safe harbor" for their investments? a) capital flight b) a balance of payments crisis c) a speculative attack on a currency d) a panic attack

a) capital flight

Which of the following bodies is sanctioned to adjudicate trade disagreements between WTO members. a) dispute settlement panel b) the International Court of Justice c) TRIPS d) G20 e) none of the above

a) dispute settlement panel

The policy of the U.S. Federal Reserve to increase the money supply by purchasing hundreds of billions of dollars in bonds and mortgage-backed securities is called a) quantitative easing. b) crony capitalism. c) a Ponzi scheme. d) the Dodd-Frank Act.

a) quantitative easing.

One important trend of recent years has been the growth of regional trade blocs. Which of the following is not a regional trade bloc? a) the G20 b) the EU c) ASEAN d) NAFTA

a) the G20

Which candidate for prime minister of Greece promised not to agree to Troika conditions for a third Greek loan, but then did agree to those conditions once he was elected? a) Yanis Varoufakis b) Alexis Tsipras c) Karalos Papoulias d) George Papandreou

b) Alexis Tsipras

What is "bitter medicine"? a) The fees major banks have imposed on customers to bring down bank debt b) Another name for austerity policies in Europe c) The U.S. TARP program d) A drink in honor of all the working class and poor who lost out during the financial crisis

b) Another name for austerity policies in Europe

Which leader complained that by holding (unofficially) weak U.S. dollars, his country was helping pay for the unpopular Vietnam War? a) Harold Wilson of Great Britain b) Mao Zedong of China c) Charles de Gaulle of France d) Lester Pearson of Canada

c) Charles de Gaulle of France

Which of the following is a multilateral trade deal being negotiated between the EU and theUnited States? a) RCEP b) TPP c) TTIP d) TiSA

c) TTIP

Which country or region has the highest share of global merchandise exports? a) China b) The United States c) The European Union d) Latin America and the Caribbean

c) The European Union

Which of the following institutions is not a member of the Troika? a) The IMF b) The ECB c) The WTO d) The European Commission

c) The WTO

Which of the following statements about the financial crisis from 2007 to 2009 is incorrect? a) The U.S. Federal Reserve played the role of "lender of last resort." b) The Federal Reserve rescued AIG, one of the world's largest bank insurers. c) Under Obama, the U.S. Congress passed a $2 trillion stimulus spending package. d) The U.S. temporarily government gained majority ownership of General Motors (GM)and Chrysler.

c) Under Obama, the U.S. Congress passed a $2 trillion stimulus spending package

For which region of the world do agricultural exports constitute the largest share of its overall merchandise exports? a) South and Central America b) Africa c) The Middle East d) Asia

a) South and Central America

Which statement about copyrights is correct? a) The TRIPS agreement stipulates a minimum time period for which member states must give protection to them. b) They confer exclusive rights over an invention for 20 years. c) They protect an idea, not the expression of an idea. d) They are signs and symbols to protect goods and services.

a) The TRIPS agreement stipulates a minimum time period for which member states must give protection to them.

Which of the following was required of the UK before negotiations could begin with the UK for terms related to its future relationship to the EU? a) The UK had to apply to leave the EU under Article 50 of the TEU. b) A new Prime Minister had to be elected. c) The House of Lords had to approve the referendum. d) None of the above.

a) The UK had to apply to leave the EU under Article 50 of the TEU.

Which statement is inaccurate? a) The United States advocates for information sovereignty. b) The United States believes that information should usually be treated as an unpoliticized commodity governed by free trade principles. c) The United States is against data localization rules. d) The United States has a surplus in trade of digital and digitally-enabled services

a) The United States advocates for information sovereignty.

Which of the following statement is correct? a) The United States spends more money on R&D each year than any other OECD country. b) R&D has become less internationalized since the 1990s. c) In the EU and the United States, most R&D is funded by the government. d) R&D spending as a percentage of GDP is higher in the United States than in Japan.

a) The United States spends more money on R&D each year than any other OECD country.

Which Troika policy generated massive protests and demonstrations in Greece and otherEuropean countries because it imposed economic hardship on ordinary people? a) austerity b) haircuts c) Grexit d) Détente

a) austerity

A toxic security is another name for a) bank mortgages and investments that lost a good deal of their value during the global financial crisis. b) credit default swaps. c) the U.S. version of SWFs. d) a new drink in honor of all the CEOs of major businesses who lost their jobs during the financial crisis.

a) bank mortgages and investments that lost a good deal of their value during the global financial crisis.

Which of the following statements about exchange rates is incorrect? a) Between 2008 and 2017, the euro appreciated against the U.S. dollar. b) Between 2000 and 2008, the U.S. dollar declined in value relative to the euro and renminbi. c) Between 2011 and 2017, the yen appreciated significantly against the U.S. dollar. d) After 2004, the Chinese government let the renminbi depreciate against the U.S. dollar.

b) Between 2000 and 2008, the U.S. dollar declined in value relative to the euro and renminbi.

Which of the following do Balaam and Dillman posit is an important trend in the knowledge structure over the last twenty years? a) Human capital and technology are becoming less important than control of land and natural resources for wealth generation. b) Global profits are increasingly shifting to those who own knowledge and control distribution of knowledge-intensive goods and services. c) Knowledge is becoming less dispersed and easier for countries to control. d) There is a general consensus that most new technology should be in the public domain.

b) Global profits are increasingly shifting to those who own knowledge and control distribution of knowledge-intensive goods and services.

Which British Prime Minister put the damper on EU integration in the early 1980s by emphasizing neoliberal economic policies? a) Edward Heath b) Margaret Thatcher c) Theresa May d) Tony Blair

b) Margaret Thatcher

A measure that restricts the quantity of an item that can be brought into a country is called a) a tariff. b) an import quota. c) an export quota. d) a duty.

b) an import quota.

Most economic experts argue that the fundamental problem with the EMU is a) lack of authority by the head of the ECB. b) failure to fulfill the requirements of an optimal currency union. c) lack of a common foreign and security policy. d) UK opposition to the euro.

b) failure to fulfill the requirements of an optimal currency union.

Which of the following is a basic principle of the GATT? a) freer trade in agricultural goods b) nondiscrimination c) preferential access d) strategic trade

b) nondiscrimination

Negotiations in the Uruguay and Doha Rounds were each organized as a "single undertaking," meaning that a) the agreed goal of the negotiations was a single tariff rate for imported manufactured goods, agricultural goods, and services. b) nothing was agreed until everything was agreed. c) tariff rates would be harmonized across all WTO members. d) WTO members pledged not to sign any other trade agreements during the Rounds.

b) nothing was agreed until everything was agreed.

According to the theory of comparative advantage, mutually advantageous international trade is based on differences in a) the absolute abundance of natural resources. b) the relative cost of producing a good in different countries. c) which good a particular nation can produce at the lowest cost. d) the effective use of trade barriers and export subsidies

b) the relative cost of producing a good in different countries.

Who suggested after World War II that western Europe should forge a "United States" ofEurope? a) Queen Elizabeth b) Charles de Gaulle c) Winston Churchill d) Franklin D. Roosevelt

c) Winston Churchill

Place these four trade-related events in their proper chronological order: (a) TPPnegotiations; (b) Uruguay Round; (c) Tokyo Round; (d) Doha Round. a) a, b, c, d b) d, b, c, a c) c, b, d, a d) c, d, a, b

c) c, b, d, a

The two main components of nondiscrimination in the GATT agreement are a) special and differential treatment. b) reciprocity and mutuality. c) national treatment and most favored nation treatment. d) multilateralism and sovereignty

c) national treatment and most favored nation treatment.

Technically, the United States has a comparative advantage over the European Union in theproduction of commercial aircraft if a) the U.S. can produce more airplanes than can the EU. b) the U.S. can produce bigger airplanes than can the EU. c) production of airplanes in the U.S. requires less sacrifice of other goods than would similar airplane production in the EU. d) the U.S. market for airplanes is larger than the EU market

c) production of airplanes in the U.S. requires less sacrifice of other goods than would similar airplane production in the EU.

Which indicator is most important when it comes to determining the balance of payments and whether or not a nation is going into debt? a) the balance of trade b) the capital account c) the current account d) none of the above

c) the current account

This event signaled the beginning of the Asian financial crisis in July of 1997: a) when foreign investors pulled most of their fund out of South Korea b) when the Thai government was overthrown in a military coup c) when the Thai government could no longer support the 25 to 1 value of the Thai baht to the U.S. dollar d) when the IMF signaled that Thailand's government was no longer worthy of credit

c) when the Thai government could no longer support the 25 to 1 value of the Thai baht to the U.S. dollar

Which of the following is a reason why many states resist significant liberalization of trade in services? a) Worries that the state will lose monopoly control over the health care and education sectors b) Fears that foreign intelligence agencies will gain more access to information about one's citizens c) Worries that certain "ways of life" will be lost d) All of the above

d) All of the above

Which of the following did the Dodd-Frank Act require? a) Prosecution of Wall Street insiders b) Modification of mortgages for struggling homeowners. c) Tighter limits on bank executives' pay and bonuses in exchange for government bailoutsof banks d) Banks' holding of more capital and collateral in reserve

d) Banks' holding of more capital and collateral in reserve

Which of the following was not a characteristic of the fixed exchange rate system of the finance and monetary structure? a) The price of gold was fixed at $35 an ounce. b) The formal and informal rules of this system reflected a political bargain between theUnited States and Western Europe whereby the United States provided security toWestern Europe in exchange for its acceptance of U.S. hegemony. c) The IMF used a variety of borrowing measures to regulate currency value adjustments. d) Currency values were allowed to adjust up or down freely according to supply and demand conditions in the market for the U.S. dollar

d) Currency values were allowed to adjust up or down freely according to supply and demand conditions in the market for the U.S. dollar

Balaam and Dillman conclude that which of the following states must assume more hegemonic responsibilities if European states are to continue to cooperate to solve common problems? a) the UK b) the United States c) France d) Germany

d) Germany

Which treaty formally established the "European Union," the European Central Bank, and theEconomic and Monetary Union in 1992? a) Treaty of Lisbon b) Treaty of Nice c) Treaty of Amsterdam d) Maastricht Treaty

d) Maastricht Treaty

Which of the following statements would an economic liberal probably agree with? a) Technological laggards need to fight for more "policy space" in IPRs. b) Developed countries use IPRs to monopolize Third World markets. c) Economic elites always seek to create private property rights from socially-produced knowledge. d) Strong IPRs create incentives for creativity and innovation.

d) Strong IPRs create incentives for creativity and innovation.

Which country is the world's largest exporter of commercial services? a) Japan b) Germany c) The United Kingdom d) The United States

d) The United States

Since 1944, the role of the IMF in the monetary and finance structure has been a) to increase the amount of liquidity in the international financial system. b) to ensure a stable international monetary system. c) to help countries with balance of payments problems on a short-term basis. d) all of the above

d) all of the above

The United States seeks to prevent foreign countries from accessing U.S. advanced technology by a) establishing deemed export controls. b) having CFIUS scrutinize foreign investments in the United States. c) limiting exports of dual-use technologies. d) all of the above.

d) all of the above

Which of the following is an example of efforts by developing countries to advance theirinterests in the face of strong IPRs? a) turning a blind eye to counterfeiting of foreign goods b) lobbying for weakening of the TRIPS agreement c) issuing compulsory licenses d) all of the above

d) all of the above

IPRs are an important issue for developing countries because a) they need technology transfer for economic development. b) they would like to move up in global value chains. c) the cost of licensing IPRs from companies in industrialized nations can be high. d) all of these are important reasons.

d) all of these are important reasons.

Financialization is closely associated with each of the following except a) shareholder value theory. b) increased stock buybacks. c) "impatient" investors such as private equity funds. d) higher levels of R&D spending over the long term.

d) higher levels of R&D spending over the long term.

A mercantilist would most likely agree with which of the following statements about trade? a) Specialization in comparative advantage benefits all the parties engaged in trade. b) A persistent trade surplus will significantly harm a country. c) A country that liberalizes trade will enjoys higher rates of economic growth. d) Trade rules should be grounded in the principle of most favored nation treatment. e) None of the above

e) None of the above

Which of the following policies would not be considered to be mercantilist?a) deemed export controls b) Made in China 2025 c) Optional Practical Training (OPT) d) "cash-for-citizenship" e) implementation of shareholder value theory

e) implementation of shareholder value theory