IPE final exam, fall 2023

IPE, final exam quiz

Welcome to your final exam quiz in international political economy. The quiz consists of 30 questions. You have 45 seconds per question. You can move back and forth between the questions.

On the next page you should write your name. The quiz itself starts on the following page.

Don't forget to also do the story exercise.

Good luck!

What's your name?

1 / 30

1. What is true of "the infant industry argument"?

1. It argues for protecting emerging domestic industries from foreign competition until they become competitive.

2. It suggests that new industries naturally have a competitive advantage.

3. It advocates for unrestricted foreign investment in new industries.

4. It recommends focusing solely on established industries for economic growth.

2 / 30

2. What issues is the ILO in charge of?

1. Labor market issues.

2. International loan repayments..

3. The least developed countries.

4. Latin American development.

3 / 30

3. According to this data, in which country is the inflation rate highest?

1. Russia

2. Argentina

3. Turkey

4. China

4 / 30

4. Saleemul Huq, who we listened to in a podcast, comes from what country?

1. Pakistan

2. Bangladesh

3. India

4. Sri Lanka

5 / 30

5. "Dependency theory" was above all developed by economists from which part of the world?

1. The Middle East

2. East Asia

3. South America

4. The Carribean

6 / 30

6. The Paris Accord of 2015 hoped to limit the rise in global temperatures to how many degrees Celsius compared to pre-industrial levels?

1. 2.0

2. 1.5

3. 1.0

4. 0.5

7 / 30

7. The Harvard professor Dani Rodrik was born in what country?

1. Great Britain

2. Egypt

3. France

4. Turkey

8 / 30

8. We discussed "optimal currency areas" in class. Which two areas did I use as an example?

1. East and West Germany

2. Istanbul and eastern Anatolia

3. Turkey and Greece

4. London and Northern Ireland

9 / 30

9. What would be an example of a “non-tarrif barrier”?

1. A direct tax on imported goods.

2. Implementing a standard income tax rate.

3. Quotas limiting the quantity of imports.

4. Lowering corporate tax for domestic companies.

10 / 30

10. NIEO was a challenge to what?

1. the European Union.

2. WTO, the World Trade Organization

3. The Bretton Woods system.

4. the UN Conference on Trade and Development

11 / 30

11. What is the name of the Taiwanese company that makes iPads, iPhones, iPods, Kindle devices and many other electronic products?

1. TSMC

2. Foxconn

3. Acer

4. Asus

12 / 30

12. What, according to Adam Smith, determines the wealth of a country?

1. Its productivity

2. Its gold reserves

3. Its human capital

4. Its national resources

13 / 30

13. A depreciation of the Turkish lira ...

1. will attract more foreign investments

2. means that foreign exchange reservers will be used up

3. makes it more expensive to study abroad

4. makes Turkish goods more expensive abroad

14 / 30

14. What does GDP measure?

1. Inequality in a society

2. A society's production of goods and service

3. Exchange rate fluctuations

4. The level of inflation

15 / 30

15. What has happened to world poverty levels since 1990?

1. They have gone down everywhere.

2. They have gone down, especially in Sub-Saharan Africa

3. They have gone down considerably, except in Sub-Saharan Africa

4. They have gone up everywhere.

16 / 30

16. Strategic trade theory assumes that ...

1. certain products have beneficial "spill-over effects."

2. the content of the exports don't matter, only the price.

3. the export of military hard-ware give a country a strategic advantage.

4. poor countries necessarily are at an advantage.

17 / 30

17. Which EU country is a notorious tax haven for multinational corporations?

1. Switzerland

2. Denmark

3. Slovenia

4. Ireland

18 / 30

18. Which country was the "hegemon" during the first era of globalization?

1. France

2. The United States

3. The Spanish Empire

4. Great Britain

19 / 30

19. If a country’s terms of trade improve ...

1. Its national debt automatically increases.

2. It faces higher import quotas.

3. It can buy more imports for a given quantity of exports.

4. It must increase its export prices.

20 / 30

20. A particular environmental problem in Bangladesh is what?

1. Higher temperatures

2. Drought

3. Floods

4. Wild fires

21 / 30

21. What does the exchange rate measure?

1. The price of a currency in terms of another currency

2. The level of foreign direct investments

3. Changes in inflation over time

4. The level of government indebtedness

22 / 30

22. According to this map, which city is most at risk if ocean levels rise by 1 meter?

1. Bangkok

2. New York

3. Rio de Janeiro

4. Tokyo

23 / 30

23. President Erdoğan's economic policies were known as "unorthodox" since he ...

1. increased interest rates although Turkey had high inflation

2. increased foreign borrowing although Turkey had high inflation

3. reduced interest rates although Turkey had high inflation

4. depreciated the lira although Turkey had high inflation

24 / 30

24. Why is the notion of comparative advantage counter-intuitive? It shows that ...

1. a sector of the economy can go out of business even if it is more efficient than a foreign competitor

2. Beggar Thy Neighbor policies under certain circumstances can contribute to universal welfare

3. currency depreciation is a double-edged sword

4. division of labor does not always lead to gains in efficiency

25 / 30

25. Where is the European Central Bank?

1. Berlin

2. Brussels

3. Luxemburg

4. Frankfurt

26 / 30

26. The theory of import substitution suggests that ...

1. a country should reduce its imports and produce its own products.

2. import high value items and export natural resources.

3. focus on high-tech industries.

4. export high value items and import natural resources

27 / 30

27. Which of the demands associated with NIEO has arguably been most successfully accomplished?

1. More influence over the IMF.

2. Regulation of multinational corporations.

3. Nationalization of natural resources.

4. Lower EU tariffs.

28 / 30

28. What is true for the figures of world trade?

1. World trade has grown more slowly than GDP.

2. World trade has grown dramatically since 2010.

3. World trade has grown less since 2010.

4. World trade benefits primarily rich countries.

29 / 30

29. Despite continued controversies, what do most economist conclude as far as the alleviation of world poverty is concerned?

1. Multinational companies play an important role.

2. The Washington consensus is a failure.

3. The state must be in charge.

4. Trade is more effective than aid.

30 / 30

30. We discussed how hegemons can be exploited by smaller countries. This is an example of what?

1. Balance of power politics

2. Free-riding

3. Beggar Thy Neighbor policies

4. Band-waggoning