Exam 4: The Economic Environments Facing Businesses

The range of economic systems in the world today,when represented on a spectrum,has one end anchored by the idea of capitalism,the other with that of socialism.

In the aftermath of the recent worldwide credit crisis,there has been a significant reduction in the level of government involvement in economic affairs.

Communism primarily relies on a system of ________.

Tatum Manufacturing recently opened a new facility in Hong Kong.The firm can most likely expect the Hong Kong government to ________.

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are planned by ________.

According to research,which of the following countries is the strongest supporter of free markets?

The Gini coefficient estimates a country's ________.

In a country's balance of payments,the current account and the capital account represent equal values.

A government increases its internal debt for all of the following reasons EXCEPT ________.

What is the difference between a command economy and state capitalism?

A market economy is one in which resources are primarily owned and controlled by individuals and companies.

Some countries opt for a mixed economic system in the belief that although an economic system should aspire to achieve the efficiencies created by free markets,it must also support policies to ________.

In a ________ economy,certain sectors of the economy are left to private ownership and free market mechanisms,while other sectors have significant state ownership and government planning.

Economic indicators such as GNI,and its expression in terms of per capita,growth rate,and PPP,are not sufficient to develop a clear picture of the overall quality of life in a country.

The Human Development Index measures the average achievements in a country on three basic dimensions of human development: mortality,knowledge,and standard of living.

Gross national income (GNI),the broadest measure of economic activity for a country,is defined as the ________.

Which of the following governmental actions is LEAST likely to increase national debt?

Inflation affects interest rates,exchange rates,the cost of living,general economic confidence,and the stability of the current political system.

The BRICs are the strongest developed economies in the world.