Study guide

Question 1

According to the lecture, which of the following is NOT a reason to Globalism?

Answer 1

Increment of world population

Question 2

Some negative impact(s) of IFIs has/have been which of the following?

Answer 2

All of the above

Question 3

World Bank primarily loans money to countries that need short-term credit to shore-up their economies.

Answer 3

False

Question 4

Which of the following is NOT a principle of the WTO?

Answer 4

Equality

Question 5

Which of the following types of bank can provide financial stability to national and international systems and act as bailout lender of last resort to prevent the collapse of a financial system?

Answer 5

Central bank

Question 6

Dependence theory views capitalism is too tilted toward the historically advantaged countries who essentially “rig” the system in their favor. The theory more likely represents the views of which of the following countries?

Answer 6

Peru

Question 7

According to the lecture, how many member countries does the European Union have now?

Answer 7

27

Question 8

The primary argument of (political) dependency theory asserts that placing the pursuit of money first tends to ignore our humanity.

Answer 8

False

Question 9

By tradition, the President of the World Bank is from the nation of the largest shareholder, the United States, while the Chairman of the IMF is from the European countries.

Answer 9

True

Question 10

The Washington Consensus is sometimes called the North by critics because most of the powerful countries, which are part of the Consensus, are in the northern hemisphere.

Answer 10

True

Question 11

Arguments advanced for protectionism do not include:

Answer 11

Excess consumption argument

Question 12

A strong neoliberal system requires a strong democratic system.

Answer 12

False

Question 13

The two main branches of the WB are the IBRD and the IDA. The IBRD helps the poorest countries and the IDA assists with low interest loans for middle income countries.

Answer 13

False

Question 14

Generally speaking, the Neoliberal regime is market-driven as compared to the communist regime, which is largely state-driven economy.

Answer 14

True

Question 15

The length of major recessions increased in the second half of the twentieth century

Answer 15

False

Question 16

Which of the following is/are true of the European Commission?

Answer 16

All of the above

Question 17

The World Trade Organization was called GATT until 1975

Answer 17

False

Question 18

According to Coughlin, the economist David Ricardo revealed that trade provides benefits to both countries, even when the relative costs of producing all products are higher in one country than the other.

Answer 18

True

Question 19

IMF is a development bank that focuses on macroeconomic performance of world economies as well as on macroeconomic and financial sector policy.

Answer 19

False

Question 20

Which of these arguments is used against neoliberalism?

Answer 20

All of the above

Question 21

A major argument against regional trading blocs is that economic interdependence creates disincentives for political cooperation and increases potential for violent confrontation.

Answer 21

False

Question 22

The economist, David Ricardo, is associated with which of the following economic theories?

Answer 22

All of the above

Question 23

One argument for regional trading blocs is that integration is easy to achieve and sustain, because all countries aware the potential economic benefits of closer economic integration.

Answer 23

False

Question 24

The principle of the “fair trade” protectionism is to design trade policies to protect the vulnerable around the world.

Answer 24

True

Question 25

Tariffs, import quotas, and regulatory barriers are forms of protectionism that “unfairly” promote domestic goods in foreign markets.

Answer 25

False

Question 26

The Washington Consensus includes:

Answer 26

Japan

Question 27

Under NAFTA, the losing party in a trade dispute is paid

Answer 27

Damages and costs by the offending country

Question 28

The European Court of Justice is roughly equivalent to our Supreme Court. The European Court of Auditors is roughly equivalent to our GAO (General Accountability Office) and CBO (Congressional Budget Office).

Answer 28

True

Question 29

According to the lecture, which of the following was given as a reason to current trend of globalism (or globalization)?

Answer 29

The dominance of neoliberalism philosophy

Question 30

The “reciprocity” principle requires each WTO member apply the same condition on all trade with other WTO members.

Answer 30

False