Chapter 4

Question 1

What is political economy?

Answer 1

Political economy explores the interaction between politics and economics, studying how political systems shape economic outcomes and vice versa.

Question 1

Example of political economy:

Answer 1

Scandinavian countries like Sweden, Norway, and Denmark are known for their social democratic systems, combining market economies with extensive welfare states.

Question 2

What are the key actors in political economy?

Answer 2

government, businesses, labor unions, civil society organizations, international institutions

Question 3

Example of government intervention in the economy:

Answer 3

China - The Chinese government implements state-led industrial policies, guiding and supporting strategic industries.

Question 4

What is the role of businesses in political economy?

Answer 4

businesses generate economic growth, create jobs, and influence policy-making through lobbying and campaign contributions.

Question 5

Gross domsetic product

Answer 5

The total value of goods and services produced in a given country or territory: per capita gdp is divided by the population

Question 6

gross national income

Answer 6

a measure of the total income of all of a country’s citizens, whether living in their home or abroad