TEST BANKS for International Political Economy 7th Edition by Thomas Oatley. ISBN 9781000771695

Chapter 5: A State-Centered Approach to Trade Politics Multiple Choice Questions 1. The state-centered approach to trade politics argues that national policymakers intervene in the economy in pursuit of a) national objectives that are dependent on domestic groups’ self-interested concerns. b) national objectives that are independent of domestic groups’ self-interested concerns. c) international objectives that are dependent on foreign groups’ self-interested concerns. d) international objectives that are independent of foreign groups’ self-interested concerns. e) national objectives that are dependent on foreign groups’ self-interested concerns.

Answer: b 2. In order to claim that a tariff and other forms of government intervention raise social welfare one must be able to demonstrate that a) something prevents factors from shifting into industries that yield lower costs than are available in other sectors in the economy. b) something prevents factors from shifting into industries that yield higher costs than are available in other sectors in the economy. c) something prevents factors from shifting into industries that yield lower returns than are available in other sectors in the economy. d) something prevents factors from shifting into industries that yield higher returns than are available in other sectors in the economy. e) short term losses will be greater than long term gains.

Answer: d 3. Economies of scale arise when the average cost of production falls a) as the number of units falls. b) as the number of units rises. c) as specific experience skills decline. d) as specific experience skills increase. e) as profits increase.

Answer: b 4. In cases of infant industries, even with domestic economies of scale, a) a new firm will be able to effectively compete once it begins to export. b) a new firm will find it easier to compete with tariffs to protect it from more efficient foreign competitors. c) a new firm will find it harder to compete with tariffs to protect it from less efficient foreign competitors.