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.
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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.
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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. […]
Date: September 3rd, 2020
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.
Date: September 3rd, 2020
QUESTION Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies. Indicate whether the statement is true or false. ANSWER FALSE It has been argued that the economic freedom associated with a market economy creates greater incentives for innovation and entrepreneurship than either a planned or […]
Date: September 3rd, 2020
QUESTION In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors. Indicate whether the statement is true or false. ANSWER TRUE In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors.
Date: September 3rd, 2020
QUESTION The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems. Indicate whether the statement is true or false. ANSWER FALSE The influential Peruvian development economist Hernando de Soto has […]
Date: September 3rd, 2020
