Exam 3: Political Economy and Economic Development

In mixed economies,in certain sectors the state set prices,owned businesses,limited private enterprise,restricted investment by foreigners,and restricted international trade.

Which of the following statements is true about Samuel Huntington?

The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until _____.

Which of the following factors is NOT likely to make a country a more attractive location for international business?

In all of the following scenarios,the costs of doing business in a country tend to be greater,EXCEPT where:

How does the ownership structure of newly privatized firms affect its functioning?

What are late-mover disadvantages?

Many states in Asia,Latin America,and Western Europe have shifted away from a mixed economy to a market-based economy.Which of the following measures is most likely to be promoted by such states?

What is deregulation? What are the steps involved in the deregulation of a command economy?

The HDI is based on all of the following measures EXCEPT:

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms continue to receive subsidies from the state and if they are protected from foreign competition.

Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations?

The economic freedom associated with a market economy creates greater incentives for innovation and entrepreneurship than either a planned or a mixed economy.

According to political scientist Samuel Huntington's thesis,global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.

Privatization reduces the incentive of business owners to increase productivity,enter new markets,and to exit losing ones.

The state can expropriate the profits from innovation through legal means.

Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living?

Countries with free market economies in which property rights are protected tend to achieve lower economic growth rates than command economies where property rights are poorly protected.

_____ involves removing legal restrictions to the free play of markets,the establishment of private enterprises,and the manner in which private enterprises operate.

The government of a country takes over the airport security industries following a major terrorist attack,to improve airport security.This is an example of privatization.