Economic Theories: Mercantilism and Protectionism

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Questions and Answers

What was the prevailing economic theory of the state before 1776?

  • Liberalism
  • Mercantilism (correct)
  • Protectionism
  • Marxism

According to Robert Gilpin, what are the two forms of mercantilism?

  • Defensive and Aggressive (correct)
  • Nationalist and Globalist
  • Liberal and Marxist
  • Capitalist and Socialist

What is the primary goal of mercantilism, according to the text?

  • To promote free trade
  • To eliminate monopolies
  • To build a strong state (correct)
  • To protect individual rights

What is the relationship between economic strength and military-political power, according to mercantilism?

<p>They are complementary (C)</p> Signup and view all the answers

What is the outcome of the international system, according to mercantilism?

<p>A zero-sum game (A)</p> Signup and view all the answers

What is the main difference between mercantilism and liberalism, according to the text?

<p>Liberals believe states can choose between economic and military power (A)</p> Signup and view all the answers

According to Marxist theory, what is the driving force of human society?

<p>Economic class (A)</p> Signup and view all the answers

What is a problem associated with free markets, according to the text?

<p>Creation of monopolies (C)</p> Signup and view all the answers

What is the title of the book written by Karl Marx and Friedrich Engels?

<p>The Communist Manifesto (B)</p> Signup and view all the answers

What is a consequence of companies using 'free goods' such as air and fresh water?

<p>Shortages and pollution (B)</p> Signup and view all the answers

What is a criticism of free markets, according to the text?

<p>They create a large underclass of very poor (B)</p> Signup and view all the answers

What is the main idea of Marxist theory in relation to human nature?

<p>Humans are naturally inclined to work together peacefully (C)</p> Signup and view all the answers

According to Marxist Theory, what is the primary motivation behind wars?

<p>Profit for the wealthy class (C)</p> Signup and view all the answers

What is the main argument of Dependency Theory?

<p>Countries cannot develop if wealthy countries invest in them and control their businesses. (A)</p> Signup and view all the answers

According to Marxist Theory, what is the ultimate outcome of the class struggle?

<p>The spread of communism. (C)</p> Signup and view all the answers

What is the main critique of liberalism and realism in Marxist and World Systems Theories?

<p>They underestimate the role of wealth and who controls it. (C)</p> Signup and view all the answers

According to World Systems Theory, how do countries interact with each other?

<p>Each country acts according to its position in the economic system. (C)</p> Signup and view all the answers

What is the primary driver of human behavior according to Marxist Theory?

<p>The drive for wealth (B)</p> Signup and view all the answers

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