Exam 4: The Economic Environments Facing Businesses

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

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

The recent global financial crisis has interrupted the trend of national economies ________.

Describe the three ways economies can be categorized.

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs.Which of the following countries is one that Pender is considering?

Taylor Enterprises wants to expand its operations into Asia.Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

The so-called "misery index" is the sum of a country's ________.

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

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

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.

When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective.

In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.

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

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

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

Uneven income distribution ________.

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

In a country that practices state capitalism, all of the following are most likely to be handled by the state EXCEPT ________.

In a country's balance of payments, the current account and the capital account represent equal values.

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