A good that everyone benefits from and from which no one can be excluded is a(n) _____.
a. exported good
b. free rider
c. collective, or public good
d. commercial good
A hegemon must do all of the following to maintain the international political economy?
a. Remain open and liberal
b. Tolerate free riders
c. Provide a stable international currency
d. A hegemon must do all of the above.
Mercantilists differ from liberalists in all of the following ways except,
a. mercantilists do not see wealth and economic growth as ends in themselves.
b. liberalists treat all specializations as equal in value; mercantilists do not.
c. mercantilists view the state as having an active and vital role in their economies; liberalists do not.
d. mercantalists would advocate for free trade over protectionism.
The mercantilist school of thought posits that states can maximize their wealth and welfare by
a. playing an active role in the economy and accumulating resources.
b. letting the invisible hand control economic decisions.
c. opening trade borders and removing barriers to trade.
d. focusing on industries in which they have a comparative advantage.
Which of the following best describes comparative advantage?
a. If a state can produce the highest volume of wool in the world, that state should produce wool regardless ofopportunity cost.
b. If a state can produce equal amounts of wine and wool, that state should produce whichever good is moreexpensive and desirable in the global economy.
c. If a state can produce wine at a lower opportunity cost than wool, that state should produce wine even if itcould produce more wool than any other state in the world.
d. States should avoid producing wine, as wool is a more valuable resource to the economy.
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