Hi! I made a practice multiple choice exam based on the literature and my notes from the lectures in order for people to prepare dor the exam! Hope it helps you prepare for the midterm.
35-Question Multiple Choice Practice Exam for Political Economy
Section 1: General Concepts in Political Economy
1. What is Political Economy primarily concerned with?
- A. The study of only politics
- B. The study of how politics and economics interact
- C. The study of economics without political influence
- D. The study of philosophy and society
2. Which of the following is a classical thinker in Political Economy?
- A. Adam Smith
- B. Karl Marx
- C. John Stuart Mill
- D. All of the above
3. What is a key characteristic of capitalism according to the IMF?
- A. Public ownership of resources
- B. Private actors own and control property
- C. State control over production
- D. Equal distribution of resources
4. Which of the following describes a normative question in political
economy?
- A. Why do voters punish politicians for corruption?
- B. Should lower consumer prices be valued over protecting jobs from
foreign competition?
- C. How do economic conditions predict election outcomes?
- D. Do regulations usually favor producers or consumers?
5. In the context of political economy, what is the "invisible hand"?
- A. Government intervention in markets
- B. Self-regulating nature of free markets
- C. State ownership of businesses
- D. An unknown political figure
6. According to Adam Smith, what is the purpose of Political Economy?
- A. To provide sufficient revenue for the state
- B. To increase the wealth of the merchants
- C. To regulate markets to prevent capitalism
- D. To ensure government control of businesses
7. What are the main social classes in a commercial society according to
Smith?
- A. Capitalists, bourgeoisie, and peasants
- B. Landlords, merchants, and laborers
- C. Kings, nobles, and clergy
- D. Managers, owners, and consumers
8. What is the driving force behind competition in Adam Smith’s theory?
, - A. Government regulation
- B. Efficiency and innovation
- C. Labor unions
- D. Trade monopolies
9. Which of the following best explains Adam Smith’s concept of the
"invisible hand"?
- A. Government manipulation of prices
- B. Market forces directing economic activities
- C. Central planning of economic activities
- D. Workers controlling the means of production
10. In Smith’s theory, which of the following is true about free markets?
- A. Free markets are best managed by governments
- B. Free markets naturally benefit workers through growth
- C. Free markets lead to a steady-state economy
- D. Free markets increase the wealth of capitalists only
11. Which of the following is a central concept in Karl Marx’s critique of
capitalism?
- A. Communism as an economic solution
- B. Capitalism leads to inevitable crises
- C. Capitalism's reliance on wage labor
- D. All of the above
12. What are the four types of alienation in Marx’s theory?
- A. Alienation from self, government, laws, and the market
- B. Alienation from product, labor process, species-being, and others
- C. Alienation from religion, politics, economics, and society
- D. Alienation from work, family, society, and self
13. According to Marx, the "Dictatorship of the Proletariat" refers to:
- A. A single-party state controlled by the proletariat
- B. The participatory democratic power exercised by the working class
- C. A totalitarian regime where the state controls all industries
- D. The elimination of all forms of democracy
14. Marx’s theory of value is based on:
- A. Labor as the source of all value
- B. Capital as the source of all value
- C. Government regulation as the source of value
- D. Market prices setting value
15. Which of the following is a potential cause of capitalist crises
according to Marx?
- A. Underconsumption
- B. Mismatch of supply and demand
- C. Falling rate of profit
- D. All of the above
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