Free International Political Economy MCQs with Answers

• A. Marshall Plan'
• B. Bretton Wood Agreement
• C. Treaty of Rome
• D. Treaty of London

Explanation: The Treaty of Rome, signed in 1957, established the European Economic Community and Euratom.

• A. Canada, USA & Brazil
• B. Argentine, USA & Mexico
• C. Canada, Brazil & Mexico
• D. Canada, USA & Mexico

Explanation: NAFTA was a North American trade agreement among Canada, the United States, and Mexico. Brazil and Argentina were not parties to it.

• A. 1 January 2007
• B. 1 January 2008
• C. 1 January 2006
• D. 1 January 2009

Explanation: SAFTA, signed in 2004 by the SAARC states, entered into force on 1 January 2006 after the required ratifications.

• A. A cross-over of a theory from domestic to international settings
• B. High levels of interaction and interdependence, most commonly with regard to the world economy
• C. The spread of European languages internationally
• D. None of the above

Explanation: Internationalization refers to growing cross-border interaction and interdependence, especially in trade, finance and production.

• A. Iran
• B. Saudi Arabia
• C. Iraq
• D. Egypt

Explanation: The second oil shock followed the 1979 Iranian Revolution, which disrupted Iran's oil production and tightened global supply.

• A. It is an approach to foreign policy that seeks to enhance economic development through trade liberalization
• B. A process whereby developed countries create development funds, usually at summit meetings
• C. Processes whereby developing countries attempt to negotiate improvements in their position in the international political economy
• D. Both b and c

Explanation: Developmental diplomacy refers to developing countries negotiating collectively or individually for better terms in the international…

• A. corporatism
• B. mercantilism
• C. despotism
• D. capitalism

Explanation: Mercantilism links state power with economic policy, especially export promotion and accumulation of monetary reserves to strengthen the…

• A. the United States
• B. Russia
• C. Great Britain
• D. France

Explanation: The United States has traditionally been identified as the world's largest exporter of small arms, measured by the value of authorized or…

• A. that free-market development only helps the rich.
• B. that development countries should be dependent on free-market development.
• C. that economic growth is dependent on the poor.
• D. all of the above.

Explanation: Dependency theory argues that the global capitalist system benefits wealthy core states and elites while keeping poorer countries in…

• A. That economic growth will eventually (and automatically) bring benefits to the poor
• B. That economic growth needs delivery systems to bring benefits to the poor
• C. That economic growth needs to be controlled by the state
• D. None of the above

Explanation: The trickle-down view assumes that economic growth will spread its benefits through the economy and eventually improve the condition of…

• A. A liberal order that the west formed through the World Bank, IMF and GATT
• B. An unsuccessful campaign for reforms made by developing countries in the 1970s
• C. A successful campaign for reforms made by developing countries in the 1970s
• D. None of the above

Explanation: The New International Economic Order was a 1970s campaign by developing countries for fairer trade, finance and control over resources.

• A. that people can only move forward through self-reliance.
• B. that economic growth can be unlimited through the free market and will trickle down to the poor.
• C. that economic growth is unimportant in development.
• D. that equitable development is more important than efficient development.Educational Resources

Explanation: The orthodox development model prioritises market-led economic growth and assumes that its benefits will eventually trickle down to poorer…

• A. a monetary condition brought about by people's own laziness.
• B. a monetary condition where people do not have enough to satisfy basic needs.
• C. a monetary and non-monetary condition where people lack access to community regulated common resources, opportunities and income.
• D. all of the above

Explanation: Critical approaches treat poverty as multidimensional, involving not only inadequate income but also lack of access to opportunities…

• A. That there is not enough food to go around
• B. That the hunger is a distribution problem
• C. That hunger is a part of human nature
• D. None of the above

Explanation: A nature-focused account explains hunger through insufficient overall food availability, as if production cannot meet population needs.

• A. set time-limited development targets.
• B. quantifiable targets across 8 areas of development.
• C. aim at eradication of extreme poverty and hunger by 2015.
• D. all of the aboveEconomics

Explanation: The Millennium Development Goals were time-bound and measurable targets covering eight development areas, including the 2015 goal of…

• A. decreasing
• B. increasing
• C. stayed the same
• D. has fluctuated over the years

Explanation: The income gap between the richest and poorest fifths of the world’s population generally widened over the period associated with…

• A. EU integration has fed on and contributed to the global trend towards neo-liberal economic policy
• B. the trend towards greater social and cultural exchange has intensified
• C. Despite the growth of an integrated market there is no real integrated civil society
• D. All of the abovePeople & Society

Explanation: The EU reflects several globalisation dynamics: market integration and neoliberal economic trends, intensified social and cultural…