Exercises 2

A)

Q1: Decide which of the following statements is correct. (p. 77.)

(a) Economists regard politics as a self-regulating mechanism.

(b) Economists regard markets as self-regulating mechanisms, where politics does not have a say at all.

(c) Political scientists regard markets as self-regulating mechanisms, where politics does not have a say at all.

(d) Economists regard markets as non self-regulating mechanisms, where politics do have a say indeed.

 

Q2: According to… (p. 77-78)

(a) IPE, world economy has a significant influence on states’ power, values and autonomy.

(b) economists, world economy has a significant influence on states’ power, values and autonomy.

(c) IPE, world economy has not got an impact on states’ power, values and autonomy.

(d) IPE, world economy has not got an impact on states’ power, culture and interests.

 

Q3: Decide, which of the following statements is correct. (p. 78)

(a) States consider relative gains much more relevant than absolute gains.

(b) States consider absolute gains much more relevant than relative gains.

(c) States consider both relative and absolute gains as equally important.

(d) States do not regard relative or absolute gains as relevant, since they are more concerned with political power.

 

Q4: Zero-sum game means that … (p. 78)

(a) none of the parties can gain.

(b) one party’s gain does not necessarily mean the loss of another.

(c) both parties can gain but only if they can agree on the distribution of benefits; otherwise, the payoffs will be zero.

(d) one party’s gain necessarily means the loss of another.

 

Q5: Interdependence … (p. 80)

(a) does not create vulnerability.

(b) may create vulnerability, but states do not care about it because they can defend themselves easily by applying protective measures.

(c) creates vulnerability.

(d) creates equal benefits for each participant.

 

Q6: States regard … (p. 80)

(a) national autonomy as important.

(b) world economy as a facilitator of national autonomy.

(c) national interest as an obstacle to economic growth.

(d) security as secondary only.

 

Q7: Nowadays, it is evident… (p. 81)

(a) that powerful market forces cannot cross political boundaries because states are strongly concerned with their boundaries.

(b) that powerful market forces cannot cross political boundaries.

(c) that powerful market forces can cross political boundaries.

(d) that powerful market forces are unable to cross economic boundaries.

 

Q8: International economic relations…. (p. 82)

(a) never have implications for economic and political autonomy.

(b) are never purely economic.

(c) are always perfectly economic.

(d) may have robust implications for economic autonomy.

Exercises 3

(i) Public goods

A)

Q1: Why is a lighthouse said to be a public good? (p. 82.)

(a) Because it enhances the welfare of the public

(b) Because no one can be excluded from its usage

(c) Because the lighthouse is good for the public.

(d) Because it costs nothing to the society.

 

Q2: What do we mean by free-riding? (p. 82.)

(a) In case of public goods, people seem to be reluctant to contribute to the costs of provision.

(b) In case of market goods, people seem to be reluctant to contribute to the costs of provision.

(c) In case of public goods, people seem to happily contribute to the costs of provision.

(d) In case of market goods, people seem to happily contribute to the costs of provision.

 

Q3: Why is it generally the case that public goods are underprovided? (p. 82.)

(a) People do have an incentive to provide public goods because they are apparently free.

(b) People try to find the proper incentives to provide public goods because they are practically not free.

(c) People do not have an incentive to provide public goods because they are apparently free.

(d) People are eager to find the proper incentives to provide public goods because they are extremely expensive in reality.

  

(ii) International institutions and international regimes

 

B) The number of right answers can be anything from zero to four.

 

Q1: Which country or countries took the leader role(s) after World War II?

(a) USA and Japan

(b) USA

(c) the OECD countries

(d) Germany and Great Britain

 

Q2: By liberal international economy, the allied Western nations meant (p. 86.)

(a) protective measures

(b) free trade

(c) cooperation among themselves

(d) open markets

 

Q3: What determines the content of an international regime? (p. 87.)

(a) economic factors

(b) gender factors

(c) political factors

(d) technological factors

 

Q4: To which concept does the following statement refer: “sets of implicit or explicit principles, norms, rules, and decision-making procedures around which actors’ expectations converge in a given area of international relations” (p. 83.)

(a) public goods

(b) the International Monetary Fund

(c) international regimes

(d) international economy

 

Q5: According to the so-called regime theory, why are international regimes necessary features of world economy? (p. 84.)

(a) International regimes can preserve and stabilise international economy.

(b) International regimes are the creatures of emerging markets.

(c) International regimes can minimise transaction costs.

(d) International regimes can reduce uncertainty in world economy.

 

Q6: What is meant by “stagflation” (http://www.investopedia.com/terms/s/stagflation.asp)? (p. 84.)

(a) relatively high level of economic growth plus deflation

(b) stagnation plus inflation

(c) low or zero economic growth plus inflation

(d) stagnation plus irritation

 

Q7: How can the term “informal rules” be best described?

(a) spontaneous, without conscious design

(b) not valid or not taken seriously

(c) artificial

(d) can be changed easily