Q.1 Which of the following best describes the concept of 'political economy'?
Study of political parties
Study of power and wealth distribution in society
Study of elections and campaigns
Study of international law
Explanation - Political economy studies how political institutions, the political environment, and economic systems influence each other.
Correct answer is: Study of power and wealth distribution in society
Q.2 Which theorist is most closely associated with the concept of 'dependency theory'?
Karl Marx
Andre Gunder Frank
Max Weber
Samuel Huntington
Explanation - Dependency theory argues that resources flow from 'peripheral' underdeveloped countries to 'core' developed countries, keeping the former underdeveloped.
Correct answer is: Andre Gunder Frank
Q.3 What is a key focus of modernization theory in political development?
Maintaining traditional structures
Economic growth leading to political stability
Promoting dependency on developed nations
Decentralizing power to local communities
Explanation - Modernization theory suggests that economic development fosters social changes that ultimately lead to stable democratic institutions.
Correct answer is: Economic growth leading to political stability
Q.4 Which institution plays a central role in regulating global trade?
United Nations
World Bank
International Monetary Fund
World Trade Organization
Explanation - The WTO oversees rules of international trade between nations and resolves trade disputes.
Correct answer is: World Trade Organization
Q.5 The 'Washington Consensus' is primarily associated with:
Socialist economic policies
Liberal economic reforms
Colonial administration strategies
Military governance
Explanation - The Washington Consensus refers to a set of economic policy prescriptions advocating free-market reforms, privatization, and fiscal discipline in developing countries.
Correct answer is: Liberal economic reforms
Q.6 Which political scientist is known for the study of 'state capacity'?
Francis Fukuyama
Robert Dahl
Samuel Huntington
Charles Tilly
Explanation - Charles Tilly analyzed how states develop their capacity to extract resources and maintain order, linking it to war-making and state-building.
Correct answer is: Charles Tilly
Q.7 Which type of economy is characterized by both market and state intervention?
Capitalist economy
Command economy
Mixed economy
Traditional economy
Explanation - A mixed economy combines elements of private enterprise with government regulation and intervention.
Correct answer is: Mixed economy
Q.8 Which of the following best describes the term 'state autonomy'?
State is influenced by public opinion
State can act independently of societal pressures
State depends entirely on market forces
State exists only symbolically
Explanation - State autonomy refers to the ability of the state to formulate and implement policies independently of societal or interest group pressures.
Correct answer is: State can act independently of societal pressures
Q.9 Which theory emphasizes that poor countries remain underdeveloped due to historical exploitation by rich countries?
Modernization theory
Dependency theory
Elite theory
Rational choice theory
Explanation - Dependency theory posits that historical patterns of exploitation and economic dependence hinder development in poor countries.
Correct answer is: Dependency theory
Q.10 Which of the following is NOT a characteristic of a welfare state?
Provision of social services
Government guarantees basic living standards
Strong private sector control over social services
Redistribution of wealth through taxation
Explanation - A welfare state involves government intervention to ensure citizens' well-being; strong private control contradicts this principle.
Correct answer is: Strong private sector control over social services
Q.11 Which political model argues that economic development naturally leads to democracy?
Dependency theory
Modernization theory
World-systems theory
Elite theory
Explanation - Modernization theorists argue that as societies develop economically, social changes such as education and urbanization foster democratic governance.
Correct answer is: Modernization theory
Q.12 Which global institution provides loans and financial assistance to developing countries?
International Monetary Fund
World Bank
United Nations Development Program
World Trade Organization
Explanation - The World Bank provides long-term loans and development projects to support economic development in poorer countries.
Correct answer is: World Bank
Q.13 Which term refers to the concentration of power and decision-making in a small elite group?
Pluralism
Oligarchy
Federalism
Anarchy
Explanation - Oligarchy is a form of power structure in which a small group of people holds concentrated political power.
Correct answer is: Oligarchy
Q.14 Which concept refers to the ability of a state to enforce laws, collect taxes, and control resources?
State capacity
Political legitimacy
Sovereignty
Federalism
Explanation - State capacity measures how effectively a government can implement policies and maintain order within its territory.
Correct answer is: State capacity
Q.15 Which of the following is a core principle of neoliberal economic policies?
Increased government regulation
Market liberalization
State ownership of industry
Strict protectionism
Explanation - Neoliberalism emphasizes free markets, deregulation, privatization, and reduced government intervention in the economy.
Correct answer is: Market liberalization
Q.16 What does the term 'rent-seeking' describe in political economy?
Investing in infrastructure
Seeking government benefits without contributing to productivity
Economic liberalization
Redistribution of wealth
Explanation - Rent-seeking occurs when individuals or firms try to gain financial advantages through lobbying or manipulation rather than productive economic activity.
Correct answer is: Seeking government benefits without contributing to productivity
Q.17 Which approach argues that development must be context-specific rather than following a universal path?
Modernization theory
Dependency theory
Post-development theory
Rational choice theory
Explanation - Post-development theory critiques universalist approaches and argues that development should consider local cultures, histories, and needs.
Correct answer is: Post-development theory
Q.18 Which of the following is an example of a core country in the world-systems theory?
United States
Bangladesh
Nigeria
Honduras
Explanation - In world-systems theory, core countries are economically developed and exploit peripheral countries for resources and labor.
Correct answer is: United States
Q.19 Which economist is associated with the idea of comparative advantage in international trade?
Adam Smith
David Ricardo
Karl Marx
John Maynard Keynes
Explanation - David Ricardo argued that countries should specialize in producing goods where they have a relative efficiency advantage to maximize global trade benefits.
Correct answer is: David Ricardo
Q.20 Which political theorist emphasized the role of institutions in economic performance?
Douglass North
Max Weber
Robert Dahl
Samuel Huntington
Explanation - Douglass North highlighted that strong institutions, such as property rights and legal systems, are crucial for economic growth and development.
Correct answer is: Douglass North
Q.21 Which of the following is an example of a rentier state?
Norway
Saudi Arabia
Japan
Germany
Explanation - A rentier state derives a substantial portion of its revenue from external rents, often natural resources like oil, rather than taxation of the domestic economy.
Correct answer is: Saudi Arabia
Q.22 What is the primary focus of public choice theory?
Market efficiency
Political decision-making using economic principles
International relations
State-building
Explanation - Public choice theory applies economic reasoning to understand political behavior, emphasizing incentives, self-interest, and collective decision-making.
Correct answer is: Political decision-making using economic principles
Q.23 Which of the following best defines 'sustainable development'?
Economic growth at any cost
Development that meets present needs without compromising future generations
Development focused only on technology
Development limited to urban areas
Explanation - Sustainable development emphasizes balancing economic, social, and environmental needs for long-term well-being.
Correct answer is: Development that meets present needs without compromising future generations
Q.24 Which concept refers to a country's ability to control its own economic and political destiny?
Sovereignty
Globalization
Federalism
Rent-seeking
Explanation - Sovereignty is the authority of a state to govern itself without external interference, particularly in political and economic affairs.
Correct answer is: Sovereignty