Exam 4: The Economic Environments Facing Businesses

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development,performance,and potential of a country?

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

In a market economy,the patterns of resource allocation are most directly influenced by ________.

A government increases its internal debt for all of the following reasons EXCEPT which of the following reasons EXCEPT ________.

What issues complicate international economic analysis?

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

The Human Development Index measures the average achievements in a country on three basic dimensions of human development: mortality,knowledge,and standard of living.

A market economy is one in which resources are primarily owned and controlled by individuals and companies.

The calculation of GNI per capita takes into account the differences in the cost of living from one country to another.

The BRICs are the strongest developed economies in the world.

Why is economic freedom an important factor to consider when analyzing a country's economic development,performance,and potential?

The so-called "misery index" is the sum of a country's inflation and unemployment rates.

Managers at Morrison Manufacturing are considering expanding the firm's production overseas and want to ensure that the firm is located in a country with a high degree of economic freedom. Presently,which of the following locations would most likely offer Morrison the highest economic freedom?

Some countries opt for a mixed economic system in the belief that although an economic system should aspire to achieve the efficiencies created by free markets,it must also support policies to ________.

Which of the following governmental actions is LEAST likely to increase national debt?

History suggests that if the economic crisis worsens,we are likely to see more people question the ________.

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers,what role does the Economic Freedom Index play in analyzing the potential of a country?

In response to the global credit crisis,the United States government took actions that increased economic freedom.

The Economic Freedom Index indicates that economic freedom is positively correlated with all of the following EXCEPT ________.

In a command economy,________.