Week 2

Question 1

What is the most powerful form of the economy in the 21st century?

Answer 1

The market

Question 2

What is the most powerful political actor?

Answer 2

The state

Question 3

What factors does a State have?

Answer 3

1. Permanent population
2. Defined territory
3. Government
4. Capacity to conduct IR

Question 4

What is a nation?

Answer 4

A group of people that belong to a group

Question 5

Who said “A market economy can be defined as one in which goods and services are exchanged on the basis of relative prices; it is where transactions are negotiated and prices are determined”

Answer 5

Gilpin

Question 6

What is a Command Economy?

Answer 6

A state would distribute based on political objectives

Question 7

What is a Market Economy?

Answer 7

A market would distribute based on individuals pursuing self interest gauged by price signals

Question 8

What is capitalism?

Answer 8

Private ownership of the means of production and free labour

Question 9

What are three types of exchange systems that Markets exist alongside?

Answer 9

1. Localised Exchange
2. Command Economies
3. Long-Distance Trade in high value goods

Question 10

True or False: Markets will not provide a good or service if it is not profitable?

Answer 10

True

Question 11

Why do states attempt to limit negative social outcomes caused by the market?

Answer 11

1. Critical role of relatives prices
2. Centrality of competition
3. Need for efficiency to survive