Exam 3: Political Economy and Economic Development

A country's economic system and property rights regime are reasonably good predictors of economic prospects.

A market with a large number of consumers,with low living standards will have a relatively large market when measured in economic terms.

Which of the following is a step in the shift toward a market-based economic system?

Sony was a pioneer in the portable music market segment.Sony's Walkman was an innovative product which created a new category altogether and made Sony a technological leader.This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time.In this example,Sony had the:

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation,and entrepreneurial activity in developing nations.

What is gross national income? Is it related to purchasing power parity?

What is the philosophy of Amartya Sen?

Is privatization by itself enough to guarantee economic growth? Why? Explain using an example.

Paralleling the spread of democracy,since the 1980s there has been the transformation from:

Google launched Google Plus to gain a foothold in the social media market.However,given that there are numerous social networking platforms and Facebook is already a leader in social media,Google Plus found it challenging to generate brand loyalty and establish itself in the market.This was because of _____.

What are the factors that contribute to the risks of doing business in a country?

_____ is required for a business environment to be conducive to innovation and entrepreneurial activity.

A market economy encourages innovation because _____.

Since the late 1980s,there has been a spread of democracy.This is because _____.

The finance minister of a country considers several large,state-owned iron manufacturing units to be inefficient and a source of corruption.To generate resources for public expenditure and promote economic growth,the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor.This process exemplifies _____.

Which of the following statement pertaining to innovation and entrepreneurship is NOT true?

Democracy is one of the consequences of economic growth and progress.

What are first-mover advantages? Explain with an example.

Transformation from centrally planned command economies to market-based economies can be attributed to the fact that command and mixed economies failed to deliver the sustained economic performance achieved by countries adopting market-based systems.

In a command economy,the prices are determined by the free interplay of demand and supply.