QUESTION Only a totalitarian regime that is committed to which of the following is capable of promoting economic growth? A. A command economy B. A dictatorship C. Limiting human freedom D. A market system and strong protection of property rights E. Limiting individualism and privatization ANSWER D Only a totalitarian regime that is committed […]
QUESTION Due to strong legal protection of property rights, businesses and individuals will: A. invest more in innovations. B. face a huge burden from excessive taxation. C. face more corruption. D. move away from entrepreneurial activity. E. run the risk of their profits being expropriated. ANSWER A Strong legal protection of property rights is […]
QUESTION People in the West tend to associate which of the following with a free market system, strong property rights protection, and economic progress? A. Anarchist state B. Representative democracy C. Planned economy D. Communist state E. Command economy ANSWER B People in the West tend to associate a representative democracy with a market […]
QUESTION The influential economist Jeffrey Sachs argues that throughout history, which of the following, with their long engagements in international trade, have been the most supportive of market institutions. A. Mountainous states B. Tropical regions C. Military societies D. Landlocked states E. Coastal states ANSWER E The influential economist Jeffrey Sachs argues that throughout […]
QUESTION The belief that geography can influence economic policy, and hence economic growth rates, goes back to: A. Adam Smith. B. Amartya Sen. C. Plato. D. Aristotle. E. Karl Marx. ANSWER A While a country’s political and economic systems are probably the big engine driving its rate of economic development, other factors are also […]
QUESTION Which of the following is most likely to be the consequence of economic progress? A. Adoption of communism B. Adoption of democracy C. Adoption of a command economy D. Adoption of a totalitarian government E. Restriction on individual freedom ANSWER B Although democracy may not always be the cause of initial economic progress, […]
QUESTION The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism: A. until they adopt communism. B. until property rights are better defined and protected. C. if they adopt free market economies. D. until their governments monopolize all means of production […]
QUESTION As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy? A. A large population B. Active bartering C. Deregulation D. Nationalization E. Closed totalitarianism ANSWER B In some countries […]
QUESTION In most eastern European nations, the title to urban and agricultural property is often uncertain because of incomplete and inaccurate records, multiple pledges on the same property, and unsettled claims resulting from demands for restitution from owners in the pre-communist era. Indicate whether the statement is true or false. ANSWER TRUE In most […]
QUESTION Which of the following is based on three measures: life expectancy at birth, educational attainment, and average incomes based on PPP estimates? A. Human Development Index B. Gross National Income C. Gross Domestic Product D. Cost of Living Index E. Cash Reserve Ratio ANSWER A The Human Development Index (HDI) is based on […]
