Exam 5: Economic Policy of the State

So-called "rational choice models" in political science assume that individuals will take their cues from government about what is the way for each to get as much from the state as possible.

A general rise in prices, indicating that the currency is worth less than it used to be, is called:

One arguably effective way to combat unemployment is to create jobs through large-scale government projects.

A government that uses tax money to buy support is engaging in ___________.

Given global changes, the range of things the state has the capacity to control has shrunk, and the maneuvering room for unilateral action has also been narrowing.

"Rent seeking" hurts the economy because:

What are some of the explanations for the tremendous variation between countries in terms of how well they provide prosperity for society and economic growth for their citizens?

Critical Thinking Try thinking through all the implications for a political system that has higher levels of autonomy for its state apparatus. What advantages and disadvantages would accrue to such a regime? Is there a troubling or satisfying implication for expanding democracy in a system?

According to your text, two general economic concerns exist in the minds of the public: performance of the economy and ___________________.

The main indicator of economic growth is:

Germany and Japan both have higher manufacturing labor costs than does the USA.

Ordnungspolitik means unregulated by politics.

The ________________ of a government controls interest rates, manages transactions, oversees private financial institutions, and the ebb and flow of monetary reserves.

The German example of political economy is one in which the post-World War II German government has been created around the notion that government should be as little engaged in the economy as possible. Maximum latitude is invested in each corporate entity with only the lightest touch by government.

A transfer of money that does not relate to production is called _________.

In the years after the Great Recession of 2008-2009 in the United States:

Using the example of South Korea, this chapter suggests that negative pressures on government and policy-making from rent-seekers can be neutralized when the local ______________ simply does not support such thinking or behavior.

A reason for the failure of import substitution industrialization in Ghana is:

Technological innovation and education, as economic tools of government, are too slow to have an impact on the dynamic factors of inflation or unemployment.

The purpose of rents in a political system is to permit authorities to buy support.