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International Politics, Chapter 15 Quiz

1. The principal economic actors on the world stage are

a. states.

b. MNCs.

c. the WTO and IMF.

d. transnational labor unions.

2. Both China's and India's potential economic power from natural resources is limited by

a. domestic turmoil.

b. their industrial capacity.

c. their relative political stability.

d. limited acceptance of capitalism.

3. Economic sanctions are likely to be most effective when

a. they aim to change the government.

b. the target state has a united government.

c. the sender and target have minimal trade links.

d. their goals are modest.

4. When fewer workers are needed to produce greater amounts of manufactured goods, the country's economy is

a. preindustrial.

b. postindustrial.

c. rapidly expanding.

d. in the development stage.

5. The economies of the LDCs have produced

a. an even distribution of income.

b. a highly disparate distribution of wealth.

c. a pure socialist economic and political system.

d. a more even distribution of income than that of the EDCs.

6. In order to purchase imports, LDCs need to

a. print more money.

b. form cartels.

c. acquire hard currency.

d. embrace capitalism.

7. The United Nations recommends that EDCs use what percentage of their GDPs for economic assistance?

a. 0.7 percent

b. 1.7 percent

c. 2.5 percent

d. 7 percent

8. According to free trade theory, countries can gain from trade if

a. they sell freely what they make most efficiently.

b. they allow the economy to be dictated by social needs.

c. they all produce goods at the same cost.

d. governments protect domestic industries, thus lowering costs.

9. The use of sanctions as a foreign policy tool is ineffective in the majority of cases.

a. True

b. False

10. Quotas are a type of nontariff barrier.

a. True

b. False