QUESTION In both China and India, the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption. Indicate whether the statement is true or false. ANSWER FALSE Both China and India have achieved high growth rates despite relatively weak property rights regimes and high levels of corruption. […]
QUESTION It is more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses. Indicate whether the statement is true or false. ANSWER TRUE It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and […]
QUESTION Social unrest and disorder are less likely to be found in countries that contain more than one ethnic nationality. Indicate whether the statement is true or false. ANSWER FALSE Social unrest and disorder are more likely to be found in countries that contain more than one ethnic nationality.
QUESTION In the context of political economy, the past three decades have seen a general move toward: A. autocratic forms of government. B. command-based economic reforms. C. adoption of legal systems that better enforce property rights. D. an environment which is unfavorable for international business. E. military parties monopolizing political power worldwide. ANSWER C […]
QUESTION One common measure of economic development is a country’s: A. gender ratio. B. gross national income. C. infant mortality rate. D. population density. E. total geographical area. ANSWER B One common measure of economic development is a country’s gross national income (GNI) per head of population.
QUESTION Which of the following measures the total annual income received by residents of a country and is regarded as a yardstick for the economic activity of a country? A. Income elasticity of demand B. Cash reserve ratio C. Net cash flow ratio D. Gross national income E. Income equity ratio ANSWER D GNI […]
QUESTION In 2012, if the PPP per capita of China was $9,040 and the PPP per capita of the United States was $52,340, this means that the: A. GNI per capita was greater in China. B. percent of goods and services consumed in the United States was lower. C. standard of living in China was […]
QUESTION Which of the following statements is true of purchasing power parity (PPP)? A. PPP figures can be misleading because they don’t consider differences in the cost of living. B. The PPP for different countries is adjusted (up or down) depending upon whether the cost of living is lower or higher than in Great Britain. […]
QUESTION One can adjust GNI per capita by purchasing power to account for differences in the: A. cost of living. B. population density. C. geographical area. D. factor endowments. E. labor productivity. ANSWER A To account for differences in the cost of living, one can adjust GNI per capita by purchasing power.
QUESTION Black economy is most likely to be prevalent when: A. large amounts of economic activity are in the form of legally recorded cash transactions. B. people engage in barter agreements to avoid paying taxes. C. a country’s GNI per capita exceeds $30,000. D. the expenses of the government are less than its income. E. […]
