Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

In a market economy,the patterns of resource allocation are most directly influenced by ________.

Accepted Answer

A)  government administrators who monitor the equilibrium of supply and demand 
B)  industry coalitions that strive to improve the efficiency of production and service 
C)  consumer group alliances that negotiate with firms to improve product quality 
D)  consumers who "vote" by their personal decision to buy or not buy products 
A)  government administrators who monitor the equilibrium of supply and demand 
B)  industry coalitions that strive to improve the efficiency of production and service 
C)  consumer group alliances that negotiate with firms to improve product quality 
D)  consumers who "vote" by their personal decision to buy or not buy products D

Question 3

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

Accepted Answer

A)  Human Development Index 
B)  Emerging Economic Stability 
C)  Genuine Progress Indicator 
D)  Net National Product 
A)  Human Development Index 
B)  Emerging Economic Stability 
C)  Genuine Progress Indicator 
D)  Net National Product A

Question 4

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

Accepted Answer

A) True 
 B)False

Question 5

What issues complicate international economic analysis?

Accepted Answer

International economic analysis uses man

Question 6

Country X has a significant amount of external debt.Which of the following is the most likely cause?

Accepted Answer

A)  The government of Country X borrowed money from local banks. 
B)  The government of Country X borrowed money from other governments. 
C)  The government of Country X spent more than it collected in revenues. 
D)  The government of Country X received short-term credits from selling bonds. 
A)  The government of Country X borrowed money from local banks. 
B)  The government of Country X borrowed money from other governments. 
C)  The government of Country X spent more than it collected in revenues. 
D)  The government of Country X received short-term credits from selling bonds.

Question 7

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?

Accepted Answer

A)  purchasing power parity 
B)  economic growth rate 
C)  gross domestic income 
D)  gross national product 
A)  purchasing power parity 
B)  economic growth rate 
C)  gross domestic income 
D)  gross national product

Question 8

In the U.S.,the unemployment rate indicates the ________.

Accepted Answer

A)  percentage of the labor force that wants to work full-time but can only find part-time employment 
B)  number of people who have stopped looking for work because full-time jobs are unavailable 
C)  percentage of unemployed workers seeking paid work relative to the total labor force 
D)  number of workers eligible for government services and unemployment benefits 
A)  percentage of the labor force that wants to work full-time but can only find part-time employment 
B)  number of people who have stopped looking for work because full-time jobs are unavailable 
C)  percentage of unemployed workers seeking paid work relative to the total labor force 
D)  number of workers eligible for government services and unemployment benefits

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

Accepted Answer

A) True 
 B)False

Question 11

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

Accepted Answer

A) True 
 B)False

Question 12

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

Accepted Answer

A)  market economy 
B)  mixed economy 
C)  command economy 
D)  democratic economy 
A)  market economy 
B)  mixed economy 
C)  command economy 
D)  democratic economy

Question 13

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

Accepted Answer

A)  be added to the GNI of the United States as well as to the GNI and GDP of Mexico 
B)  not be added to the GNI of the United States but would be added to the GNI of Mexico 
C)  only affect the computation of GDP and have no bearing on GNI 
D)  be added to the GNI of the United States but not the GNI of Mexico 
A)  be added to the GNI of the United States as well as to the GNI and GDP of Mexico 
B)  not be added to the GNI of the United States but would be added to the GNI of Mexico 
C)  only affect the computation of GDP and have no bearing on GNI 
D)  be added to the GNI of the United States but not the GNI of Mexico

Question 14

What is inflation? How does inflation affect international business?

Accepted Answer

Inflation means that prices are going up

Question 15

In most cases,if the misery index of a country is high,then consumers and businesses are less likely to spend and invest.

Accepted Answer

A) True 
 B)False

Question 16

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

Accepted Answer

A)  per capita GNI 
B)  GNI growth rate 
C)  purchasing power parity 
D)  degree of human development 
A)  per capita GNI 
B)  GNI growth rate 
C)  purchasing power parity 
D)  degree of human development

Question 17

Presently,which of the following countries is best characterized as a pure example of a command economy?

Accepted Answer

A)  Russia 
B)  North Korea 
C)  China 
D)  Vietnam 
A)  Russia 
B)  North Korea 
C)  China 
D)  Vietnam

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

Accepted Answer

A)  trade deficit 
B)  Gini coefficient 
C)  balance of payments 
D)  purchasing power parity 
A)  trade deficit 
B)  Gini coefficient 
C)  balance of payments 
D)  purchasing power parity

Question 20

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

Accepted Answer

State Capitalism is an economic system w

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

In a market economy,the patterns of resource allocation are most directly influenced by ________.

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

What issues complicate international economic analysis?

Country X has a significant amount of external debt.Which of the following is the most likely cause?

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?

In the U.S.,the unemployment rate indicates the ________.

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

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

What is inflation? How does inflation affect international business?

In most cases,if the misery index of a country is high,then consumers and businesses are less likely to spend and invest.

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

Presently,which of the following countries is best characterized as a pure example of a command economy?

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

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

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

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 4: The Economic Environments Facing Businesses

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

In a market economy,the patterns of resource allocation are most directly influenced by ________.

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

What issues complicate international economic analysis?

Country X has a significant amount of external debt.Which of the following is the most likely cause?

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?

In the U.S.,the unemployment rate indicates the ________.

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

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

What is inflation? How does inflation affect international business?

In most cases,if the misery index of a country is high,then consumers and businesses are less likely to spend and invest.

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

Presently,which of the following countries is best characterized as a pure example of a command economy?

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

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

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

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters