Chapter 5,6,7 and 8 midterm exam

Question 1

What is Economies Policy?

Answer 1

Is a course of action that is intended to influence or control the behavior of the economy. Economic policy covers a wide range of measure which governments use to mange their economies.
This includes : Monetary policy , Fiscal Policy , budget, job creation and trade policy.

Question 2

What is economy ?

Answer 2

Is a system of goods and service are produced, distributed , traded and consumed within a particular country.
EX: Sales , distribution, exchange.

Question 3

How central is the Economy ?

Answer 3

Is extremely important as it directly impacts the quality of life of its citizens by deterring their access to basic necessities like food.

Question 4

How central is the Economy? cont’d

Answer 4

economies grow , states can tax revenue and gain the capacity and resource needed to provide the public goods.

Question 5

Rational Choice theory

Answer 5

political science theory that attempts to explain political behavior by assuming that people act rationally and their own self interest.

Question 6

Political Economy

Answer 6

Studies the nature of the relationship between the state and the economy, and rationality.

Question 7

Why are there variations in economic performance?

Answer 7

• Differences in natural resources
• mistakes by govern t in their investment polices.
  -Capacities of their human capital.
• Lack of manufacturing actives.
• Dependency relation between the industrialized countries of the north and the developing countries of the South.

Question 8

Distribution of economic benefits

Answer 8

-Rents &rent seeking
-Import substation isdustrailization
-Contolling inflation vs unemployment & its political impact .
- Polices directed at income inequalities : progressive / regressive taxes.

Question 9

more government options for sustaining growth: the case of South Korea

Answer 9

-Encourge saving -> boost investment
- Maitan competition ( all sectors)
- support eduction
- Accommodate job mobility -support R&D
-Scale
- oil crisis of 1970s

Question 10

Structural Factors

Answer 10

• central banks ( independence)
• corruption ( Use of public resource for private gain)

Question 11

States’d capacity to mange the economy

Answer 11

• Globalization
• Currency management & fluctuations
• International investment
• trade
• energy inter dependence

Question 13

other aspects of Justice

Answer 13

Substantive/ distributive justice - idea that people should receive what they need and deserve.
- Procedure justice - the very complex and involves how decisions

Question 14

Aribirtay policies and due processes

Answer 14

Government action
- due process- the idea that we must always follow certain standard proceeders in making a given policy

Question 15

Special Basic Rights

Answer 15

Vary from country to country. while some see them as universal, others argue that they should be culturally defined and determined.
- Right to survive
- right to free speech
- right to privacy

Question 16

Overidding social needs

Answer 16

This is the idea that there might be overriding social needs that enter into the consideration of justice

Question 17

Policy Making in the real world

Answer 17

• Policy making is always complicated
• complexity could paralyze a regime
• course choices might be wrong