Exam 4: Economic Systems and Development

Managers in the poorest transitional countries tend to lack training in all areas of business management.

Scenario: Learning the American Way Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States. -Sergei believes it is important to recognize the origin of the economic system in each country. He knows that the idea of central economic planning was popularized by ________.

One of the most important factors in forming a successful venture in China is guanxi (or government ownership).

All the following factors contributed to the collapse of centrally planned economies EXCEPT ________.

A monopoly occurs when one company is able to control a product's supply and, therefore, its price.

Economic transition and reform make deep impressions on a people's ________.

People in countries that rank high on wealth and HDI tend to have dramatically shorter life spans.

Economic systems in ________ cultures tend to provide incentives and rewards for individual initiative.

Supply and demand are dictated by what is called the ________.

In a ________, few restrictions are placed on consumers' ability to make their own decisions and exercise free choice.

One key feature of a market economy is price flexibility, which allows most prices to rise and fall to reflect the forces of supply and demand.

The sale of government-owned economic resources to private companies and individuals is called privatization.

In a market economy, ________ allows most prices to rise and fall to reflect the forces of supply and demand.

Which of the following is NOT true?

Both GDP per capita and GNP per capita measure a nation's income per person.

In 1997, China regained control of ________.

The human development index (HDI) measures the extent to which a government satisfies its people's needs along all the following dimensions EXCEPT ________.

Nations having the poorest infrastructures and lowest personal incomes are called ________.

When China regained control of Hong Kong, it promised to implement a "one country, two systems" scenario to support economic and political freedom in Hong Kong.

A(n) ________ consists of the structures and processes that a country uses to allocate resources and conduct commercial activities.