15 MCQ on Economic Liberalisation and Global Dependence with answers
15 MCQ on Economic Liberalisation and Global Dependence with answers
1. Economic liberalization typically involves:
a) Increased government intervention in the economy
b) Greater restrictions on international trade
c) Reduction of barriers to market entry and foreign investment
d) Nationalization of key industries
Answer: c) Reduction of barriers to market entry and foreign investment
2. The process of economic liberalization often includes:
a) Implementing protectionist policies
b) Privatizing state-owned enterprises
c) Increasing tariffs on imports
d) Imposing strict currency controls
Answer: b) Privatizing state-owned enterprises
3. Which international organization is associated with promoting economic liberalization and free trade?
a) World Health Organization (WHO)
b) World Trade Organization (WTO)
c) International Monetary Fund (IMF)
d) United Nations Educational, Scientific and Cultural Organization (UNESCO)
Answer: b) World Trade Organization (WTO)
4. Economic liberalization is often accompanied by:
a) Increased government spending
b) Higher levels of income equality
c) Deregulation of industries
d) Expansion of state control over the economy
Answer: c) Deregulation of industries
5. Which country is often cited as a model of successful economic liberalization in the late 20th century?
a) Cuba
b) Venezuela
c) China
d) North Korea
Answer: c) China
6. Economic liberalization aims to:
a) Increase government control over economic activities
b) Reduce market competition
c) Stimulate economic growth and development
d) Promote isolationism in trade relations
Answer: c) Stimulate economic growth and development
7. The "Washington Consensus" refers to:
a) Agreement among developed countries on currency exchange rates
b) A set of neoliberal economic policies advocated by international financial institutions
c) A trade agreement between North and South American countries
d) Negotiations on labor standards and environmental protection
Answer: b) A set of neoliberal economic policies advocated by international financial institutions
8. One consequence of economic liberalization can be:
a) Increased protectionism
b) Slower economic growth
c) Higher levels of foreign investment
d) Greater income inequality
Answer: d) Greater income inequality
9. Economic liberalization often involves:
a) Tightening controls on capital flows
b) Encouraging entrepreneurship and innovation
c) Nationalizing private enterprises
d) Imposing trade barriers
Answer: b) Encouraging entrepreneurship and innovation
10. Which term refers to the increasing integration of national economies into a global economic system?
a) Economic nationalism
b) Protectionism
c) Globalization
d) Isolationism
Answer: c) Globalization
11. Structural Adjustment Programs (SAPs) are often associated with:
a) Economic liberalization in developing countries
b) Increased government control over the economy
c) Protectionist trade policies
d) Expansion of welfare programs
Answer: a) Economic liberalization in developing countries
12. The "neoliberal" approach to economics emphasizes:
a) Government intervention in the economy
b) Market deregulation and privatization
c) Import substitution
d) State ownership of industries
Answer: b) Market deregulation and privatization
13. Economic liberalization may lead to:
a) Decreased foreign investment
b) Increased access to global markets
c) Expansion of state-owned enterprises
d) Greater reliance on subsidies
Answer: b) Increased access to global markets
14. Which factor contributed to the spread of economic liberalization in the late 20th century?
a) Rise of communist regimes
b) Collapse of the Soviet Union
c) Emergence of autocratic governments
d) Global economic recession
Answer: b) Collapse of the Soviet Union
15. One challenge associated with economic liberalization is:
a) Increased government revenue
b) Environmental degradation
c) Reduced foreign direct investment
d) Enhanced social welfare programs
Answer: b) Environmental degradation
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