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 […]
QUESTION If newly privatized firms are protected from foreign competition by barriers to international trade and foreign direct investment, they continue to act like state monopolies. Indicate whether the statement is true or false. ANSWER TRUE Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if […]
QUESTION Five of the fastest growing economies of the past 30 years—China, South Korea, Taiwan, Singapore, and Hong Kong—had one thing in common at the start of their economic growth: democratic governments. Indicate whether the statement is true or false. ANSWER FALSE Five of the fastest growing economies of the past 30 years—China, South […]
QUESTION Totalitarian states, by limiting human freedom, are highly conducive to progress in terms of innovation, entrepreneurship, and economic growth. Indicate whether the statement is true or false. ANSWER FALSE Totalitarian states, by limiting human freedom, also suppress human development and therefore are detrimental to progress.
QUESTION A boom in product liability suits and awards in the United States resulted in a dramatic increase in the cost of liability insurance. Many business executives argue that this: A. makes American businesses less competitive in the global marketplace. B. offers American businesses greater protection from foreign competitors. C. exposes consumers to greater product […]
QUESTION Veronica had been getting red patches on her face after using a protein-based lotion manufactured by Nature Life Research Lab. On consulting a dermatologist, she learned that the lotion’s steroid levels were beyond the standard levels permitted by the government and the damage caused by the lotion was irreversible. Which of the following will […]
QUESTION Who among the following can claim product liability from the offender? A. Jason wants to sue a multinational company for mass manufacturing one of his inventions without purchasing the rights. B. Rebecca’s patented jewelry designs have been imitated and sold at a low price under her brand name. C. The airbags in Brian’s car, […]
