Question 1

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

Accepted Answer

Deregulation involves removing legal res...

Question 2

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms:

Accepted Answer

A)   stop receiving subsidies from the government.
B)   are completely owned by private individuals.
C)   are sheltered from foreign competition.
D)   are allowed to restructure their operations.E) A) and B)
F) A) and C)

Question 3

Is privatization by itself enough to guarantee economic growth? Why? Explain using an example.

Accepted Answer

As privatization has proceeded around th...

Question 4

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 rateE) All of the above
F) A) and B)

Question 5

The long-run monetary benefits of doing business in a country are a function of the size of the market,the present wealth of consumers in that market,and the likely future wealth of consumers.

Accepted Answer

A) True 
 B)False

Question 6

New information and communication technologies have enabled the spread of democratic ideals.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

Some totalitarian regimes have fostered a market economy and strong property rights protection and have experienced rapid economic growth.

Accepted Answer

A) True 
 B)False

Question 9

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.E) B) and C)
F) B) and D)

Question 10

The benefits of doing business in a country are a function of all of the following EXCEPT:

Accepted Answer

A)   the size of the market.
B)   its present wealth.
C)   its past growth.
D)   its future growth prospects.E) A) and B)
F) A) and C)

Question 11

What are the conditions required to encourage innovation and entrepreneurship?

Accepted Answer

It has been argued that the economic fre...

Question 12

Political freedoms 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 13

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?

Accepted Answer

A)   State-ownership of enterprises
B)   Fixing of prices by the government
C)   Deregulation of the economy
D)   Lowering competitionE) A) and B)
F) A) and C)

Question 14

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...

Question 15

Why are democratic regimes more conducive to economic growth than dictatorships?

Accepted Answer

Some totalitarian regimes have fostered ...

Question 16

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

Accepted Answer

Many former command economies lack the l...

Question 17

It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)   Deregulation
B)   Trade certification
C)   A product law
D)   A liability lawE) All of the above
F) B) and C)

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true about Samuel Huntington?

Accepted Answer

A)   Samuel Huntington argues that there is a universal civilization based on widespread acceptance of Western democratic ideals.
B)   Samuel Huntington argues that the rise of Islamic fundamentalism is a response to the alienation produced by modernization.
C)   Samuel Huntington argues that global terrorism is a product of the static nature of traditional values and religious systems.
D)   Samuel Huntington argues that many societies, by adopting the material paraphernalia of the modern world, are becoming more Western.E) B) and D)
F) B) and C)

Exam 3: National Differences in Economic Development

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.

Correct AnswerverifiedShow Answer

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms:

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What are the conditions required to encourage innovation and entrepreneurship?

Correct AnswerverifiedIt has been argued that the economic fre...View AnswerShow Answer

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

Correct AnswerverifiedThe rationale for economic transformatio...View AnswerShow Answer

New information and communication technologies have enabled the spread of democratic ideals.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedMany former command economies lack the l...View AnswerShow Answer

Is privatization by itself enough to guarantee economic growth? Why? Explain using an example.

Correct AnswerverifiedAs privatization has proceeded around th...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is true about Samuel Huntington?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedDeregulation involves removing legal res...View AnswerShow Answer

Stagnation can occur in planned economies because:

Correct AnswerverifiedShow Answer

It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

Correct AnswerverifiedShow Answer

The benefits of doing business in a country are a function of all of the following EXCEPT:

Correct AnswerverifiedShow Answer

The long-run monetary benefits of doing business in a country are a function of the size of the market,the present wealth of consumers in that market,and the likely future wealth of consumers.

Correct AnswerverifiedShow Answer

Political freedoms is one of the measures used by the Human Development Index (HDI)to measure the quality of human life in different nations.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

GNI per person figures can be misleading because _____.

Correct AnswerverifiedShow Answer

Some totalitarian regimes have fostered a market economy and strong property rights protection and have experienced rapid economic growth.

Correct AnswerverifiedShow Answer

Why are democratic regimes more conducive to economic growth than dictatorships?

Correct AnswerverifiedSome totalitarian regimes have fostered ...View AnswerShow Answer

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It has been argued that the economic fre...
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The rationale for economic transformatio...
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Many former command economies lack the l...
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As privatization has proceeded around th...
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Deregulation involves removing legal res...
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Some totalitarian regimes have fostered ...
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