0

Financial Economics and Political Economy

Description: This quiz covers the intersection of financial economics and political economy, exploring the relationship between financial markets, institutions, and political systems.
Number of Questions: 15
Created by:
Tags: financial economics political economy financial markets economic policy
Attempted 0/15 Correct 0 Score 0

Which theory suggests that political institutions influence the distribution of economic resources and outcomes?

  1. Public Choice Theory

  2. Rational Expectations Hypothesis

  3. Efficient Market Hypothesis

  4. Modern Monetary Theory


Correct Option: A
Explanation:

Public Choice Theory posits that political institutions are shaped by individuals seeking to maximize their own economic and political benefits.

What is the term for the government's use of fiscal and monetary policies to influence the economy?

  1. Quantitative Easing

  2. Fiscal Stimulus

  3. Economic Intervention

  4. Monetary Policy


Correct Option: C
Explanation:

Economic Intervention refers to the government's active involvement in the economy through policies aimed at achieving specific economic goals.

Which economic school of thought emphasizes the importance of government regulation to prevent market failures and promote economic stability?

  1. Austrian School

  2. Keynesian Economics

  3. Monetarism

  4. Neoclassical Economics


Correct Option: B
Explanation:

Keynesian Economics advocates for government intervention to stimulate aggregate demand and stabilize the economy during economic downturns.

What is the term for the idea that political actors use economic policies to gain political power or influence?

  1. Rent-Seeking

  2. Political Business Cycle

  3. Economic Populism

  4. Regulatory Capture


Correct Option: A
Explanation:

Rent-Seeking refers to the use of political power to obtain economic benefits or advantages that are not earned through productive activity.

Which theory suggests that political institutions can affect economic growth and development?

  1. Institutional Economics

  2. New Institutional Economics

  3. Comparative Political Economy

  4. Historical Institutionalism


Correct Option: A
Explanation:

Institutional Economics emphasizes the role of institutions in shaping economic outcomes and argues that institutions can either facilitate or hinder economic growth.

What is the term for the idea that economic inequality can lead to political instability and social unrest?

  1. Economic Determinism

  2. Political Economy of Inequality

  3. Social Conflict Theory

  4. Economic Elite Theory


Correct Option: B
Explanation:

The Political Economy of Inequality examines the relationship between economic inequality and political power, arguing that inequality can shape political outcomes and vice versa.

Which economic school of thought emphasizes the importance of individual liberty, limited government intervention, and free markets?

  1. Marxist Economics

  2. Keynesian Economics

  3. Austrian School

  4. Neoclassical Economics


Correct Option: C
Explanation:

The Austrian School advocates for minimal government intervention in the economy, emphasizing the role of individual choice and market forces in achieving economic prosperity.

What is the term for the idea that economic policies can be used to achieve political goals, such as winning elections or consolidating power?

  1. Economic Statecraft

  2. Political Economy of Power

  3. Economic Nationalism

  4. Economic Imperialism


Correct Option: B
Explanation:

The Political Economy of Power examines how economic policies are used to achieve political objectives, often at the expense of economic efficiency or stability.

Which theory suggests that political institutions can shape the distribution of income and wealth in society?

  1. Distributional Politics

  2. Social Choice Theory

  3. Political Economy of Development

  4. Economic Sociology


Correct Option: A
Explanation:

Distributional Politics focuses on the political processes and institutions that determine how income and wealth are distributed among different groups in society.

What is the term for the idea that economic development can lead to political democratization and liberalization?

  1. Economic Determinism

  2. Political Economy of Development

  3. Modernization Theory

  4. Dependency Theory


Correct Option: B
Explanation:

The Political Economy of Development examines the relationship between economic development and political change, arguing that economic growth can lead to political liberalization and democratization.

Which economic school of thought emphasizes the importance of social institutions, norms, and values in shaping economic outcomes?

  1. Institutional Economics

  2. Behavioral Economics

  3. New Institutional Economics

  4. Social Economics


Correct Option: A
Explanation:

Institutional Economics emphasizes the role of social institutions, norms, and values in shaping economic behavior and outcomes.

What is the term for the idea that economic policies can be used to promote social justice and equality?

  1. Economic Justice

  2. Social Policy

  3. Welfare Economics

  4. Distributive Justice


Correct Option: A
Explanation:

Economic Justice focuses on the use of economic policies to promote social justice and equality, addressing issues such as poverty, inequality, and discrimination.

Which economic school of thought emphasizes the importance of government intervention to correct market failures and promote economic efficiency?

  1. Neoclassical Economics

  2. Keynesian Economics

  3. Austrian School

  4. Monetarism


Correct Option: A
Explanation:

Neoclassical Economics advocates for government intervention to correct market failures and promote economic efficiency, while emphasizing the importance of individual choice and market forces.

What is the term for the idea that economic policies can be used to achieve environmental sustainability and protect natural resources?

  1. Ecological Economics

  2. Environmental Economics

  3. Green Economics

  4. Sustainable Development


Correct Option: A
Explanation:

Ecological Economics focuses on the relationship between economic activity and the environment, advocating for policies that promote sustainability and protect natural resources.

Which economic school of thought emphasizes the importance of understanding the historical context and institutional arrangements in which economic activity takes place?

  1. Historical Institutionalism

  2. New Institutional Economics

  3. Comparative Political Economy

  4. Institutional Economics


Correct Option: A
Explanation:

Historical Institutionalism emphasizes the importance of understanding the historical context and institutional arrangements in which economic activity takes place, arguing that institutions evolve over time and shape economic outcomes.

- Hide questions