QUESTION Author Francis Fukuyama envisioned a world split into different civilizations, each of which has its own value systems and ideology. Indicate whether the statement is true or false. ANSWER FALSE The late influential political scientist Samuel Huntington envisioned a world split into different civilizations, each of which has its own value systems and […]
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 […]
QUESTION Economic freedom does not necessarily equate with political freedom. Indicate whether the statement is true or false. ANSWER TRUE Economic freedom does not necessarily equate with political freedom.
QUESTION If a country’s economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity. Indicate whether the statement is true or false. ANSWER TRUE If a country’s economy is to sustain long-run economic growth, the business environment must […]
QUESTION The shift toward deregulation has been easier for former command economies than for mixed economies. Indicate whether the statement is true or false. ANSWER FALSE In mixed economies, the role of the state was more limited; but here too, in certain sectors the state set prices, owned businesses, limited private enterprise, restricted investment […]
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 […]
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.
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 […]
