Exam 4: The Economic Environments Facing Businesses

According to the concept of green economics, measuring a country's economic performance should also take into account ________.

Uneven income distribution is largely a problem confined to poorer nations.

The Gini coefficient estimates a country's ________.

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 occurs because aggregate demand is growing as fast as aggregate supply.

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

________ typically results when demand decreases and supply increases.

During a time of reflation, the government is most likely to ________.

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.

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.

What issues complicate international economic analysis?

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

A worrisome outcome of chronic inflation is that it tends to ________.

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

What is inflation?

Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy, leisure time, and income equality?

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.

A system in which individuals, rather than the government, make the majority of economic decisions is commonly referred to as a ________.

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