QUESTION Which of the following best exemplifies an entrepreneur? A. Sam, an employee at a supermarket, is solely responsible for all the purchases and sales at the grocery department. B. Joe recycles old household articles to build phones, radios, and other things for his personal use. C. Max makes his living by investing in small […]
QUESTION A country’s economic system and property rights regime do not influence the attractiveness of the country as a market or investment site. Indicate whether the statement is true or false. ANSWER FALSE The political, economic, and legal environments of a country clearly influence the attractiveness of that country as a market or investment […]
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 New information and communication technologies have increased a state’s ability to control access to uncensored information. Indicate whether the statement is true or false. ANSWER FALSE New information and communication technologies, including satellite television, fax machines, desktop publishing, and, most important, the Internet, have reduced a state’s ability to control access to uncensored […]
QUESTION In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems. Indicate whether the statement is true or false. ANSWER TRUE In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries […]
QUESTION Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth. Indicate whether the statement is true or false. ANSWER TRUE Without strong property rights protection, businesses and individuals run the risk that the profits from their innovative efforts will […]
