Question 1

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 all planned by the government.

Accepted Answer

A) True 
 B)False

Question 2

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development,performance,and potential of a country?

Accepted Answer

The answer of What general characteristics of a country should...

Question 3

History suggests that if the economic crisis worsens,we are likely to see more people question the ________.

Accepted Answer

A)  fall of communism 
B)  legitimacy of capitalism 
C)  practicality of mixed market economies 
D)  correlation between economic freedom and prosperity

Question 4

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Accepted Answer

A) True 
 B)False

Question 5

Taylor Enterprises wants to expand its operations into Asia.Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

Accepted Answer

A)  minimal government intervention 
B)  standardized minimum wages 
C)  laws favoring sustainability 
D)  state-run corporations

Question 6

In response to the global credit crisis,the United States government took actions that increased economic freedom.

Accepted Answer

A) True 
 B)False

Question 7

________ is a general,sustained rise in prices measured against a standard level of purchasing power.

Accepted Answer

A)  Deflation 
B)  Inflation 
C)  Expansion 
D)  Reflation

Question 8

Which of the following is most typical of a command economy?

Accepted Answer

A)  Consumers have choices of many substitutes for any given product. 
B)  Quality of products and services tends to be consistent. 
C)  The prices of goods and services frequently change. 
D)  Many products are usually in short supply.

Question 9

Which of the following is most likely a true statement about the global economy since the 1980s?

Accepted Answer

A)  Socialist governments are intervening more in global exchanges. 
B)  Wealthy countries are exercising total control over emerging markets. 
C)  Developing countries are losing growing shares of their foreign-exchange reserves. 
D)  Emerging economies are adopting the principles and practices of free markets.

Question 10

The World Bank reports that approximately ________ percent of the world's population is poor.

Accepted Answer

A)  50 
B)  33 
C)  80 
D)  95

Question 11

Which of the following is NOT a characteristic of capitalism?

Accepted Answer

A)  private ownership of assets 
B)  right to profit from individual effort 
C)  state control of factors of production 
D)  private control of investment

Question 12

Kyle,an international manager for Apex Industries,has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion.Which of the following questions is LEAST relevant to Kyle's assignment?

Accepted Answer

A)  How much freedom will Apex have to run its foreign operations? 
B)  What are the current economic policies related to development? 
C)  What is the likelihood that Apex can fill manufacturing positions with locals? 
D)  What factors in the country drive or hinder economic change?

Question 13

Between 2000 and 2008,China's economy grew at a faster rate than Japan's economy.

Accepted Answer

A) True 
 B)False

Question 14

The ________ view calls for companies to develop low-cost,high-powered,resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.

Accepted Answer

A)  Base of the Pyramid 
B)  Hierarchy of Needs 
C)  Happy Planet Index 
D)  Gini coefficient

Question 15

Describe the three ways economies can be categorized.Which one do you believe is best? Why?

Accepted Answer

The answer of Describe the three ways economies can be...

Question 16

External debt results when the government spends more than it collects in revenues,whereas internal debt results when a government borrows money from foreign lenders.

Accepted Answer

A) True 
 B)False

Question 17

Since the late 1980s,the growing emergence of freer markets has been powered by the realization that ________.

Accepted Answer

A)  economic growth is directly related to economic freedom 
B)  economic growth has a limited effect on the standard of living 
C)  adoption of free market principles contributes to social injustices 
D)  centrally planned economies are best designed to deliver progress

Question 18

________ typically results when demand decreases and supply increases.

Accepted Answer

A)  Inflation 
B)  Chronic inflation 
C)  Reflation 
D)  Deflation

Question 19

Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy,leisure time,and income equality?

Accepted Answer

A)  microeconomics 
B)  happynomics 
C)  macroeconomics 
D)  green economics

Question 20

In a country's balance of payments,the ________ tracks all trade activity in merchandise.

Accepted Answer

A)  capital account 
B)  current account 
C)  payment account 
D)  deficit account

Exam 4: The Economic Environments Facing Businesses

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 all planned by the government.

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development,performance,and potential of a country?

History suggests that if the economic crisis worsens,we are likely to see more people question the ________.

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Taylor Enterprises wants to expand its operations into Asia.Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

In response to the global credit crisis,the United States government took actions that increased economic freedom.

________ is a general,sustained rise in prices measured against a standard level of purchasing power.

Which of the following is most typical of a command economy?

Which of the following is most likely a true statement about the global economy since the 1980s?

The World Bank reports that approximately ________ percent of the world's population is poor.

Which of the following is NOT a characteristic of capitalism?

Kyle,an international manager for Apex Industries,has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion.Which of the following questions is LEAST relevant to Kyle's assignment?

Between 2000 and 2008,China's economy grew at a faster rate than Japan's economy.

The ________ view calls for companies to develop low-cost,high-powered,resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.

Describe the three ways economies can be categorized.Which one do you believe is best? Why?

External debt results when the government spends more than it collects in revenues,whereas internal debt results when a government borrows money from foreign lenders.

Since the late 1980s,the growing emergence of freer markets has been powered by the realization that ________.

________ typically results when demand decreases and supply increases.

Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy,leisure time,and income equality?

In a country's balance of payments,the ________ tracks all trade activity in merchandise.