According to Gilpin, the goal of liberal economics is a Pareto optimum world, which means __________.
a. you can improve one person's position without harming any other person
b. each person's position is equal relative to everyone else's
c. international economics becomes a zero-sum game
d. international economics becomes a constant-sum game
What sets Gilpin's view apart from those of the other schools?
a. Gilpin argues that states should give up economic decisions to international institutions.
b. Gilpin argues that international economic markets are inherently rational.
c. Gilpin argues that the common interest should have priority over individual state interests.
d. Gilpin argues that the relationship between politics and economics is reciprocal.
How does liberalism differ from both Marxism and mercantilism?
a. Liberalism maintains that economics determines politics.
b. Liberalism is relatively unconcerned with income distribution.
c. Liberalism is based on a zero-sum model of international relations.
d. Liberalism places a high priority on economic trade and wealth.
Why would a mercantilist likely reject an agreement by which all states are made better off but some are made better off than others are?
a. Mercantilists care only about absolute gains.
b. Mercantilists perceive political economy as a positive-sum game.
c. Mercantilists would assume that the ruling classes in each state would benefit the most.
d. Mercantilists prioritize the national interest and are, therefore, sensitive to the issue of relative gains.
Liberal economists believe that the good of all nations would be served by __________.
a. establishing stricter regulations on international division of labor
b. permitting the free flow of capital among nations
c. minimizing travel of goods across national borders
d. discouraging states from pursuing their own economic self-interest
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