Question 1

Stagnation can occur in planned economies because:

Accepted Answer

A)  entrepreneurial individuals have few economic incentives for innovation. 
B)  private ownership of means of production leads to exploitation of workers. 
C)  prices of goods and services are fixed by market forces of demand and supply. 
D)  lack of barriers to trade results in increased competition for domestic producers. 
A)  entrepreneurial individuals have few economic incentives for innovation. 
B)  private ownership of means of production leads to exploitation of workers. 
C)  prices of goods and services are fixed by market forces of demand and supply. 
D)  lack of barriers to trade results in increased competition for domestic producers.

Question 2

_____,a Nobel Prize-winning economist,has argued that development is not just an economic process,but it is a political one as well.

Accepted Answer

A)  Hernando de Soto 
B)  Karl Marx 
C)  Samuel Huntington 
D)  Amartya Sen 
A)  Hernando de Soto 
B)  Karl Marx 
C)  Samuel Huntington 
D)  Amartya Sen

Question 3

One visible indicator of political risks tends to be a country's inflation rate.

Accepted Answer

A) True 
 B)False

Question 4

The state can expropriate the profits from innovation through legal means,such as _____.

Accepted Answer

A)  bureaucratic kickbacks 
B)  excessive taxation 
C)  black market transactions 
D)  privatization 
A)  bureaucratic kickbacks 
B)  excessive taxation 
C)  black market transactions 
D)  privatization

Question 5

A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.

Accepted Answer

A) True 
 B)False

Question 6

Describe how overinvestment led to the 1997-98 financial crises in Southeast Asia.

Accepted Answer

In Asian states such as Indonesia,Thaila

Question 7

Anecdotal comparisons suggest that the assertion that nations that invest more in education will have higher growth rates is true.

Accepted Answer

A) True 
 B)False

Question 8

For privatization to work,it must also be accompanied by:

Accepted Answer

A)  an increase in trade barriers and tariffs. 
B)  an increase in government subsidies. 
C)  stronger barriers to foreign competition. 
D)  a general deregulation of the economy. 
A)  an increase in trade barriers and tariffs. 
B)  an increase in government subsidies. 
C)  stronger barriers to foreign competition. 
D)  a general deregulation of the economy.

Question 9

One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.

Accepted Answer

A) True 
 B)False

Question 10

A free market economy in which property rights are protected leads to subsequent economic growth,which often leads to the establishment of:

Accepted Answer

A)  a democratic regime. 
B)  a planned economy. 
C)  government owned enterprises. 
D)  a socialist economy. 
A)  a democratic regime. 
B)  a planned economy. 
C)  government owned enterprises. 
D)  a socialist economy.

Question 11

GNI per person figures can be misleading because _____.

Accepted Answer

A)  they also include barter agreements 
B)  they provide a dynamic picture of development 
C)  they don't consider differences in the cost of living 
D)  they don't consider exchange rate 
A)  they also include barter agreements 
B)  they provide a dynamic picture of development 
C)  they don't consider differences in the cost of living 
D)  they don't consider exchange rate

Question 12

In some countries,the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

Accepted Answer

A)  it doesn't consider differences in the cost of living. 
B)  it gives a static picture of development. 
C)  it fails to include income earned from other countries in the form of dividends. 
D)  large amounts of economic activity may be in the form of barter agreements. 
A)  it doesn't consider differences in the cost of living. 
B)  it gives a static picture of development. 
C)  it fails to include income earned from other countries in the form of dividends. 
D)  large amounts of economic activity may be in the form of barter agreements.

Question 13

Explain how geography of a nation influences its economic development.

Accepted Answer

The influential Harvard University econo

Question 14

According to Hernando de Soto,which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

Accepted Answer

A)  Detailed state planning 
B)  Restricting direct investment by foreign enterprises 
C)  Strong property rights 
D)  Market regulation 
A)  Detailed state planning 
B)  Restricting direct investment by foreign enterprises 
C)  Strong property rights 
D)  Market regulation

Question 15

Economic freedom necessarily equates with political freedom.

Accepted Answer

A) True 
 B)False

Question 16

Totalitarian states promote human freedom and human development,which facilitates economic progress.

Accepted Answer

A) True 
 B)False

Question 17

Economic risks are independent of political risk.

Accepted Answer

A) True 
 B)False

Question 18

Life expectancy at birth is one of the measures used by the Human Development Index (HDI)to measure the quality of human life in different nations.

Accepted Answer

A) True 
 B)False

Question 19

For privatization to work,it must also be accompanied by a more general deregulation and opening of the economy.

Accepted Answer

A) True 
 B)False

Question 20

Since the 1980s,there has been a transformation from centrally planned command economies to market-based economies.What is the rationale for this transformation?

Accepted Answer

The rationale for economic transformatio

Stagnation can occur in planned economies because:

_____,a Nobel Prize-winning economist,has argued that development is not just an economic process,but it is a political one as well.

One visible indicator of political risks tends to be a country's inflation rate.

The state can expropriate the profits from innovation through legal means,such as _____.

A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.

Describe how overinvestment led to the 1997-98 financial crises in Southeast Asia.

Anecdotal comparisons suggest that the assertion that nations that invest more in education will have higher growth rates is true.

For privatization to work,it must also be accompanied by:

One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.

A free market economy in which property rights are protected leads to subsequent economic growth,which often leads to the establishment of:

GNI per person figures can be misleading because _____.

In some countries,the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

Explain how geography of a nation influences its economic development.

According to Hernando de Soto,which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

Economic freedom necessarily equates with political freedom.

Totalitarian states promote human freedom and human development,which facilitates economic progress.

Economic risks are independent of political risk.

Life expectancy at birth is one of the measures used by the Human Development Index (HDI)to measure the quality of human life in different nations.

For privatization to work,it must also be accompanied by a more general deregulation and opening of the economy.

Since the 1980s,there has been a transformation from centrally planned command economies to market-based economies.What is the rationale for this transformation?

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 3: Political Economy and Economic Development

Stagnation can occur in planned economies because:

_____,a Nobel Prize-winning economist,has argued that development is not just an economic process,but it is a political one as well.

One visible indicator of political risks tends to be a country's inflation rate.

The state can expropriate the profits from innovation through legal means,such as _____.

A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.

Describe how overinvestment led to the 1997-98 financial crises in Southeast Asia.

Anecdotal comparisons suggest that the assertion that nations that invest more in education will have higher growth rates is true.

For privatization to work,it must also be accompanied by:

One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.

A free market economy in which property rights are protected leads to subsequent economic growth,which often leads to the establishment of:

GNI per person figures can be misleading because _____.

In some countries,the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

Explain how geography of a nation influences its economic development.

According to Hernando de Soto,which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

Economic freedom necessarily equates with political freedom.

Totalitarian states promote human freedom and human development,which facilitates economic progress.

Economic risks are independent of political risk.

Life expectancy at birth is one of the measures used by the Human Development Index (HDI)to measure the quality of human life in different nations.

For privatization to work,it must also be accompanied by a more general deregulation and opening of the economy.

Since the 1980s,there has been a transformation from centrally planned command economies to market-based economies.What is the rationale for this transformation?

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters