IPE Midterm 2 Exam Questions Complete
Latest 2025/2026 with Correct Answers and
Rationales GRADED A+
- power, security, and wealth acclimation
o States influence the production and trade structure by creating
Mercantilism and advantages through strategic trade policies
trade o State intervention limits overdependence
o Free trade doesn't favor all states
Strategic trade can help disadvantaged states infant industries
Economic
- Trade is mutually beneficial and can help stabilize system
Liberalism and
- Trust in the market to determine the production
Trade
- current system of trade is based on exploitation
o The production and trade structure are determined by the
Structuralism and dominant class in society and is designed to ensure they have the
Trade means production
§ A system that divides the world into a core, semi-periphery and
periphery
- rather than looking at the system itself we need to look at the
norms that shape it
Constructivism
o Societal beliefs and international norms shape the production
and Trade
and trade structure as well as how the international system
governs state behavior on trade
, the ability of an individual, a firm, or a country to produce more of a
absolute
good or service than competitors, using the same amount of
advantage
resources
o The production of a single good: one
division of labor
Person, one job
comparative The ability of a country to produce a good at a lower cost than
advantage another country can.
Principle of - nations should do what they do best regardless of how well others
specialization do these things
- the inherent ability of a country that allows that country to produce
specific goods in an efficient and effective manner at a relatively
Absolute lower marginal cost. A country has an absolute advantage in
Advantage producing a good if it can produce that good at lower marginal cost,
lesser manpower, lesser time and lesser cost without
compromising the quality.
the country's capability of producing the specific good at lower
Comparative
marginal cost and opportunity cost in comparison to other
Advantage
countries.
What is the
difference
In absolute advantage where the emphasis is only on marginal
between absolute
cost, comparative advantage takes into account both marginal and
advantage and
opportunity cost.
Comparative
Advantage?
Latest 2025/2026 with Correct Answers and
Rationales GRADED A+
- power, security, and wealth acclimation
o States influence the production and trade structure by creating
Mercantilism and advantages through strategic trade policies
trade o State intervention limits overdependence
o Free trade doesn't favor all states
Strategic trade can help disadvantaged states infant industries
Economic
- Trade is mutually beneficial and can help stabilize system
Liberalism and
- Trust in the market to determine the production
Trade
- current system of trade is based on exploitation
o The production and trade structure are determined by the
Structuralism and dominant class in society and is designed to ensure they have the
Trade means production
§ A system that divides the world into a core, semi-periphery and
periphery
- rather than looking at the system itself we need to look at the
norms that shape it
Constructivism
o Societal beliefs and international norms shape the production
and Trade
and trade structure as well as how the international system
governs state behavior on trade
, the ability of an individual, a firm, or a country to produce more of a
absolute
good or service than competitors, using the same amount of
advantage
resources
o The production of a single good: one
division of labor
Person, one job
comparative The ability of a country to produce a good at a lower cost than
advantage another country can.
Principle of - nations should do what they do best regardless of how well others
specialization do these things
- the inherent ability of a country that allows that country to produce
specific goods in an efficient and effective manner at a relatively
Absolute lower marginal cost. A country has an absolute advantage in
Advantage producing a good if it can produce that good at lower marginal cost,
lesser manpower, lesser time and lesser cost without
compromising the quality.
the country's capability of producing the specific good at lower
Comparative
marginal cost and opportunity cost in comparison to other
Advantage
countries.
What is the
difference
In absolute advantage where the emphasis is only on marginal
between absolute
cost, comparative advantage takes into account both marginal and
advantage and
opportunity cost.
Comparative
Advantage?
