Exam 4: The Economic Environments Facing Businesses

In a country's balance of payments,the ________ tracks all trade activity in merchandise.

In the aftermath of the recent worldwide credit crisis,there has been a significant reduction in the level of government involvement in economic affairs.

The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing,incomes,security,and work-life balance.

An economic system is the set of structures and processes that ________ in a country.

Which of the following calls for economic activity that meets present needs without hindering the future needs of society?

Gross domestic product is the value of production that takes place within a nation's border,without regard to whether the production is done by domestic or foreign factors of production.

There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.

Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ________.

The range of economic systems in the world today,when represented on a spectrum,has one end anchored by the idea of capitalism,the other with that of socialism.

The ________ view calls for companies to develop low-cost,high-powered,resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.

Eileen,a manager at an international restaurant chain,wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine?

Inflation affects interest rates,exchange rates,the cost of living,general economic confidence,and the stability of the current political system.

There is a positive correlation between economic freedom and economic growth.

Economic indicators such as GNI,and its expression in terms of per capita,growth rate,and PPP,are not sufficient to develop a clear picture of the overall quality of life in a country.

The two main categories in the balance of payments are the ________.

What is gross national income? How is it calculated? Illustrate your answer with a specific example.

________ typically results when demand decreases and supply increases.

In most cases,governments ________ in order to regulate inflation.

Which of the following is most likely a FALSE statement about income inequality?

The World Bank reports that approximately ________ percent of the world's population is poor.