POLITICAL ECONOMY EXAMINATION QUESTIONS AND CORRECT ANSWER WITT EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY

POLITICAL ECONOMY EXAMINATION QUESTIONS AND
CORRECT ANSWER WITT EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY

1. Political economy studies:

A. Cooking systems
B. Interaction between politics and economics
C. HR only
D. Sports only
Answer: B
It examines how political forces shape economic outcomes.



2. Political economy combines:

A. Biology and chemistry
B. Economics and political science
C. HR and cooking
D. Geography only
Answer: B
It links power and resource allocation.



3. The state in political economy refers to:

A. Firms
B. Government institutions
C. HR state
D. Cooking state
Answer: B
Public authority.



4. Market failure leads to:

,A. Efficiency
B. Government intervention
C. HR failure
D. Cooking failure
Answer: B
State corrects inefficiencies.



5. Invisible hand theory was proposed by:

A. Keynes
B. Adam Smith
C. Marx
D. Ricardo
Answer: B
Self-regulating markets.



6. Capitalism is:

A. State ownership only
B. Private ownership of resources
C. HR system
D. Cooking system
Answer: B
Market-based economy.



7. Socialism is:

A. Private ownership
B. State ownership of major resources
C. HR socialism
D. Cooking socialism
Answer: B
Public control.



8. Mixed economy combines:

, A. Only socialism
B. Capitalism and socialism
C. HR mix
D. Cooking mix
Answer: B
Dual system.



9. Political institutions influence:

A. Weather
B. Economic policies
C. HR institutions
D. Cooking institutions
Answer: B
Policy decisions.



10. Public goods are:

A. Private goods
B. Non-excludable and non-rival
C. HR goods
D. Cooking goods
Answer: B
Accessible to all.



11. Free rider problem occurs when:

A. Everyone pays
B. People benefit without paying
C. HR problem
D. Cooking problem
Answer: B
Public goods issue.



12. Rent-seeking is: