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Multiple Choice Quiz
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1
One criticism of using Gross National Product (GNP) as a basis to determine how well countries are doing is that the GNP
A)does not take into account prices for locally consumed goods despite the fact that the cost of locally consumed goods affects purchasing power.
B)is a biased measure because it is based on the U.S. dollar.
C)is an outdated measure that does not take into account the move toward standardized currencies such as the euro.
D)relies too heavily on purchasing power to determine the economic health of countries.
2
Which of the following represents the realpolitik school of international political economy?
A)capitalism
B)economic structuralism
C)economic nationalism
D)economic internationalism
3
Which approach to international political economy focuses on increasing global prosperity through international cooperation?
A)economic nationalism
B)economic internationalism
C)economic structuralism
D)economic statecraft
4
All of the following are terms associated with economic structuralism except
A)dependency.
B)neocolonialism.
C)neoliberalism.
D)neoimperialism.
5
Investment in foreign companies or real estate is known as
A)foreign portfolio investment.
B)foreign direct investment.
C)foreign service investment.
D)foreign goods investment.
6
Countries that have made significant strides toward the establishment of a modern economic base are often referred to as
A)newly developing countries (NDCs).
B)countries in transition (CITs).
C)economically developed countries (EDCs).
D)newly industrializing countries (NICs).
7
A negative side effect of modernization is
A)rapid urbanization.
B)increased longevity.
C)a population decrease.
D)a decrease in levels of infant mortality.
8
The New International Economic Order
A)lacks UN support.
B)was repudiated by the "Havana Program of Action."
C)reaffirms the desirability of laissez-faire capitalism.
D)calls for reforms in the global economy to address inequality and poverty.
9
Which of the following is not an instrument used by governments to restrict trade?
A)tariffs
B)quotas
C)health and safety standards
D)loans
10
Economic sanctions and economic incentives
A)represent competing views of economic nationalists and structuralists.
B)are usually not good options for leaders.
C)are incompatible with one another.
D)can be used simultaneously, as in the case of Iran.





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