Test on Introduction to International Political Economy

Question 1: In the current era of globalization, risk management is no longer considered the most important part of the matrix.

A. Ano

B. Ne

Explanation: The study materials state that 'We are back in globalization where risk management is probably the most important part of the matrix,' indicating its high importance.

Question 2: The world economy, understood as a real socio-economic system, is easily modeled, and econometrics is typically sufficient for predicting real-world events.

A. Ano

B. Ne

Explanation: The world economy is described as a real system involving real people with emotions and expectations, making it difficult to model. The text states that in the world economy, it is impossible to easily model or predict things, and sophisticated models are often surprised by unpredictable events, indicating that econometrics is not always helpful for real things.

Question 3: According to the lecturer, which three fields are combined within International Political Economy (IPE)?

A. Economics, political science, and technology

B. History, sociology, and psychology

C. Business, finance, and trade

D. Econometrics, forecasting, and probabilities

Explanation: The study materials state that 'the international political economy combines economics with political science, and I will also be adding... technology'.

Question 4: According to the study materials, what is the fundamental approach Marxists believe is necessary to address the deficiencies of capitalism?

A. Implementing government intervention and quotas to fix market problems.

B. Trusting primarily in private responsibility and the efficiency of markets.

C. Rebuilding the entire economic system from its foundations.

D. Applying minor adjustments like tariffs and quotas to mend the system.

Explanation: The study materials state that Marxists 'see the deficiencies of capitalism, they see the deficiencies of markets, but they don't believe that you can easily fix them by a tariff there or a quote there. They believe that you must rebuild it from scratch.'

Question 5: In today's typical discourse, migration is generally viewed as a marvelous opportunity for society to learn and improve.

A. Ano

B. Ne

Explanation: The study materials state that 'Imagine how typical people think about migration these days. Migration is a threat. Migration must be stopped. Migration must be limited. And in the typical discourse, no longer seen as an opportunity.' This contradicts the idea that it is generally viewed as a marvelous opportunity.