Quiz 2 Practice

Which is the best statement of the relationship between wealth and power according the mercantilist

National wealth creates national power secures national wealth

The Keynesian compromise can be summed up in which of the following statements

The tradeoff between the need for domestic regulation while gradually opening up international markets

John Stuart Mil is most noted for changing liberalism to reflect

advocating selective state action in cases where individual initiative might be inadequate in promoting social welfare

Which of the following is NOT likely to be on the list of things OELs would recommend to solve the global financial crisis?

do more to insulate people from the negative effects of globalization

Adam Smith favored "laissez-faire" policies, where individuals would achieve social benefit guided by the "invisible hand." The invisible hand stands for

individual self interests and choices

An important example of neo-mercantalism in the 1970s was the United States- led campaign with many industrialized states to decrease their foreign dependence on ______

oil

David Ricardo favored free open international market. Which of the following ideas about free, open markets is not associated with Ricardo?

open markets resulted in zero-sum benefits to all

The term "embedded liberalism" refers to

the idea that markets need to be encapsulated in political and social institutions in order for them to be viewed as legitimate

Which period of history is often called the "mercantilist period"?

the period of nation- building in Europe and elsewhere- roughly 1600-1850

According to the authors, the financial crisis has led many HILs to assert that _____ must act to save the financial system and even capitalism itself

the state