Question 1

Nations that have economic freedom also have political freedom.

Accepted Answer

A) True 
 B)False

Question 2

In Samuel Huntington's thesis, global terrorism is a product of the

Accepted Answer

A)   clash of value systems and ideology between civilizations.
B)   widespread acceptance of universal global civilization.
C)   declining liberal democratic ideals.
D)   differences in the factor endowments between countries.
E)   geographical differences between nations.F) All of the above
G) C) and D)

Question 3

When considering innovations and entrepreneurship, it can be said that

Accepted Answer

A)   a command economy creates greater incentives for innovation and entrepreneurship than a market economy.
B)   if a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity.
C)   a high level of entrepreneurial activity leads to a low level of innovation.
D)   innovations in production and business processes lead to an increase in the productivity of labor and capital.
E)   strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.F) C) and E)
G) B) and D)

Question 4

Based on calculations for 2018, which country is ranked by the Heritage Foundation as having the world's freest economy?

Accepted Answer

A)   Ireland
B)   Hong Kong
C)   North Korea
D)   Canada
E)   the United StatesF) All of the above
G) A) and E)

Question 5

During the late 1980s and early 1990s, many totalitarian governments collapsed and were replaced by democratically elected governments.

Accepted Answer

A) True 
 B)False

Question 6

AllSteel Inc. is planning an international expansion. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country

Accepted Answer

A)   with a closed totalitarian political system.
B)   where the company will have to provide its own infrastructure and supporting business.
C)   where laws regarding product safety, safety in the workplace, and environmental pollution are extremely stringent.
D)   where politicians are held accountable by the electorate.
E)   with no local laws to protect intellectual property.F) B) and D)
G) A) and B)

Question 7

The country of Garuf has recently removed all legal restrictions on the establishment of private enterprises. This action represents the process of

Accepted Answer

A)   the nationalization of private assets.
B)   deregulation.
C)   socialism.
D)   expanding totalitarian controls.
E)   isolationism.F) B) and C)
G) A) and B)

Question 8

An accurate description of privatization is that

Accepted Answer

A)   it started in China in the early 1980s.
B)   it involves replacing a state-owned monopoly with a private monopoly.
C)   it is most successful when countries adopt communism.
D)   when newly privatized firms are protected from foreign competition, they have little incentive to restructure their operations to become more efficient.
E)   in today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.F) None of the above
G) B) and D)

Question 9

Traditional grocery stores now have to compete with Amazon's front-door delivery services. As a result, many grocery stores now offer online ordering and home delivery. This new strategy is an example of

Accepted Answer

A)   privatization.
B)   economic deregulation.
C)   purchasing power parity.
D)   innovation
E)   benchmarking.F) A) and D)
G) D) and E)

Question 10

Privatization occurs when state-owned property is transferred into the hands of individuals.

Accepted Answer

A) True 
 B)False

Question 11

Generally, the costs and risks associated with doing business in a foreign country are typically lower in

Accepted Answer

A)   less developed countries.
B)   economically advanced countries.
C)   totalitarian states.
D)   countries with high inflation and falling living standards.
E)   countries that lack intellectual property rights.F) A) and B)
G) B) and C)

Question 12

Lindsey lives in a country where the state owns all the means of production and there is little incentive for entrepreneurial activity. Lindsey lives in a

Accepted Answer

A)   market economy.
B)   mixed economy.
C)   planned economy.
D)   private economy.
E)   democratic economy.F) C) and D)
G) A) and B)

Question 13

The three measures of the ________ are life expectancy at birth, educational attainment, and average incomes based on PPP estimates.

Accepted Answer

A)   Human Development Index
B)   Gross National Income
C)   Gross Domestic Product
D)   Cost of Living Index
E)   Cash Reserve RatioF) A) and D)
G) B) and C)

Question 14

Briefly describe the three significant changes that have occurred in the political economy of some of the world's nation-states since the late 1980s.

Accepted Answer

The political economy of many of the wor...

Question 15

A nation that has inadequate enforcement of property rights reduces the motivation for innovative activity.

Accepted Answer

A) True 
 B)False

Question 16

In economic terms, the long-run monetary benefits of doing business in a country are based on the size of the market, the present purchasing power of consumers and the ________ of the country.

Accepted Answer

A)   gender ratio
B)   geographic location
C)   natural resources
D)   future consumer wealth
E)   political historyF) B) and D)
G) C) and D)

Question 17

Which of these companies is demonstrating a first-mover advantage?

Accepted Answer

A)   Tide-All Inc. has more than 50 percent market share in the telecom industry, because no other company has invested in this industry before Tide-All Inc.
B)   The first 50 people who respond to the tweet sent out by Hal's Hamburgers receive a $5 coupon they can use on their next order.
C)   The level of satisfaction Simon experienced when dining at the Tasty Cafe was highest the first time but reduced each time he dined there.
D)   Innovative Creations Inc. was the first to exit the declining pager phone manufacturing industry and as a result, it avoided losing a lot of money.
E)   Jenna has been asked to review the mascara she bought from AllWell Beauty. Her feedback will help the company improve the product.F) B) and E)
G) A) and E)

Question 18

At one time, economic stagnation resulted in Great Britain because the coal mining and telecommunications industries were

Accepted Answer

A)   privatized.
B)   sold off to foreign owners.
C)   monopolies owned by the state.
D)   compromised during the war.
E)   decentralized.F) C) and E)
G) None of the above

Question 19

Gross national income figures should be carefully evaluated because they don't take into account differences in

Accepted Answer

A)   the available workforce.
B)   government intervention.
C)   the cost of living.
D)   market conditions.
E)   political power.F) A) and B)
G) C) and E)

Question 20

Jeremy reminded the board members that it is important to understand the inflation rate of a country before entering into business. Jeremy is concerned with the ________ risks of doing business.

Accepted Answer

A)   ethical
B)   economic
C)   technological
D)   legal
E)   sociologicalF) A) and C)
G) A) and D)

Exam 3: National Differences in Economic Development

Briefly describe the three significant changes that have occurred in the political economy of some of the world's nation-states since the late 1980s.

Correct AnswerverifiedThe political economy of many of the wor...View AnswerShow Answer

AllSteel Inc. is planning an international expansion. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country

Correct AnswerverifiedShow Answer

Jeremy reminded the board members that it is important to understand the inflation rate of a country before entering into business. Jeremy is concerned with the ________ risks of doing business.

Correct AnswerverifiedShow Answer

During the late 1980s and early 1990s, many totalitarian governments collapsed and were replaced by democratically elected governments.

Correct AnswerverifiedShow Answer

A nation that has inadequate enforcement of property rights reduces the motivation for innovative activity.

Correct AnswerverifiedShow Answer

Nations that have economic freedom also have political freedom.

Correct AnswerverifiedShow Answer

Based on calculations for 2018, which country is ranked by the Heritage Foundation as having the world's freest economy?

Correct AnswerverifiedShow Answer

Generally, the costs and risks associated with doing business in a foreign country are typically lower in

Correct AnswerverifiedShow Answer

The three measures of the ________ are life expectancy at birth, educational attainment, and average incomes based on PPP estimates.

Correct AnswerverifiedShow Answer

Gross national income figures should be carefully evaluated because they don't take into account differences in

Correct AnswerverifiedShow Answer

Which of these companies is demonstrating a first-mover advantage?

Correct AnswerverifiedShow Answer

Privatization occurs when state-owned property is transferred into the hands of individuals.

Correct AnswerverifiedShow Answer

Lindsey lives in a country where the state owns all the means of production and there is little incentive for entrepreneurial activity. Lindsey lives in a

Correct AnswerverifiedShow Answer

An accurate description of privatization is that

Correct AnswerverifiedShow Answer

The country of Garuf has recently removed all legal restrictions on the establishment of private enterprises. This action represents the process of

Correct AnswerverifiedShow Answer

At one time, economic stagnation resulted in Great Britain because the coal mining and telecommunications industries were

Correct AnswerverifiedShow Answer

In economic terms, the long-run monetary benefits of doing business in a country are based on the size of the market, the present purchasing power of consumers and the ________ of the country.

Correct AnswerverifiedShow Answer

In Samuel Huntington's thesis, global terrorism is a product of the

Correct AnswerverifiedShow Answer

When considering innovations and entrepreneurship, it can be said that

Correct AnswerverifiedShow Answer

Traditional grocery stores now have to compete with Amazon's front-door delivery services. As a result, many grocery stores now offer online ordering and home delivery. This new strategy is an example of

Correct AnswerverifiedShow Answer

Correct Answer
verified
The political economy of many of the wor...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified