Political & Economic Change in Development
Which of the following is a primary function of the International Monetary Fund (IMF)?
To promote international peace and security through diplomacy.
To provide financial assistance to countries facing economic difficulties.
To regulate international trade and resolve trade disputes.
To promote sustainable development and environmental protection.
Which of the following economic indicators is most useful for assessing the overall size and health of a country's economy?
The inflation rate.
The unemployment rate.
The Gross Domestic Product (GDP).
The level of income inequality.
Which of the following best describes globalization, a key term in understanding international economics?
A decrease in interconnectedness among nations.
The increasing interconnectedness of nations through economic, social, and political ties.
A focus on purely domestic economic policies.
The isolation of countries from international trade.
In what way can Multinational Corporations (MNCs) exert influence on government policies within a host country?
By remaining entirely neutral and avoiding any interaction with government officials.
By lobbying, investing in local economies, and creating jobs.
By exclusively supporting non-governmental organizations (NGOs) without engaging with governments.
By strictly adhering to domestic laws and regulations without seeking any policy changes.
How do authoritarian regimes typically shape their economic policies?
By prioritizing state-controlled economies with limited private sector involvement.
By promoting free trade and minimal government intervention.
By encouraging widespread privatization of industries.
By fostering a completely unregulated market economy.
Multinational Corporations (MNCs) are often at the center of debates about economic power and influence because they:
Operate exclusively within their home country.
Have a decentralized structure and operate in multiple countries.
Primarily focus on non-profit activities.
Avoid influencing government policies.
How might the World Trade Organization (WTO) influence economic policies in a course country?
By providing military aid to stabilize the country's government.
By setting international trade standards and resolving trade disputes.
By directly controlling the country's monetary policy.
By promoting cultural exchange programs to foster better international relations.

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What is a key characteristic of 'free trade' as it relates to international economic policy?
It discourages trade between countries to protect domestic industries.
It encourages trade between countries, boosting global economic activity.
It involves strict government control over all imports and exports.
It focuses solely on trade within regional blocs, excluding other nations.
Which of the following is a potential negative impact of globalization on national economies?
Increased cultural exchange and understanding.
Greater access to technology and innovation.
Job displacement in developed countries due to increased competition.
Overall reduction in economic inequality worldwide.
How can economic inequality impact political stability within a country?
By fostering greater social cohesion and reducing political polarization.
By leading to social unrest, political instability, and potentially violent conflict.
By encouraging greater participation in democratic processes and strengthening civil society.
By having no significant impact on political dynamics or government legitimacy.