Question 1

Which of the following is an advantage of a market economy?

Accepted Answer

A)  Any individual who has an innovative idea is free to try to make money out of that idea by starting a business.
B)  The state owns all means of production.
C)  Commercialization of innovative products is prevented.
D)  It is the state,rather than the individual,that captures most of the gains.E) None of the above
F) A) and C)

Question 2

Which of the following is one of the reasons for the spread of democracy in the world?

Accepted Answer

A)  Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.
B)  The rise of dominant nuclear powers.
C)  The failure of post-communist countries to achieve economic growth.
D)  In many countries,the economic downturn of the past quarter century have led to the decline of prosperous middle and working classes.E) A) and B)
F) B) and D)

Question 3

_____ and _____ can be considered as the engines of long-run economic growth.

Accepted Answer

A)  Regulation;universal education
B)  Regulation;democracy
C)  Innovation;entrepreneurial activity
D)  Capital;subsidiesE) All of the above
F) B) and C)

Question 4

The communist version of socialism reached its high point in:

Accepted Answer

A)  the 1950s.
B)  the late 1970s.
C)  the period immediately following World War II.
D)  the mid-1990s.E) A) and B)
F) A) and C)

Question 5

According to Freedom House _____ of the world's nations can be classified as free in 2009.

Accepted Answer

A)  about 89 percent
B)  most
C)  less than half
D)  less than 20 percentE) A) and B)
F) A) and C)

Question 6

"Five of the fastest-growing economies of the past 30 years-China,South Korea,Taiwan,Singapore,and Hong Kong-had one thing in common at the start of their economic growth: undemocratic governments.Thus,it can be concluded that totalitarian governments are better for a functioning market economy than are democratic governments." Do you agree with this statement? Why or why not?

Accepted Answer

People in the West tend to associate a r...

Question 7

Your company has business interests in a country where the President-elect has won on a platform of a return to socialism and protectionism.Consequently,you are concerned about the _____ risks of continuing to do business in that country.

Accepted Answer

A)  ethical
B)  fiscal
C)  political
D)  operationalE) B) and C)
F) C) and D)

Question 8

_____ is regarded as a yardstick for the economic activity of a country,and it measures the total annual income received by residents of a nation.

Accepted Answer

A)  HDI
B)  GDP
C)  GPI
D)  GNIE) A) and B)
F) All of the above

Question 9

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s are examples of theocratic totalitarianism.

Accepted Answer

A) True 
 B)False

Question 10

The two top states in the 2009 Heritage Foundation index of the freest economies in the world,Hong Kong and Singapore,cannot be classified as politically free.This indicates that:

Accepted Answer

A)  lack of political freedom is a prerequisite for economic freedom.
B)  economic freedom does not necessarily equate with political freedom.
C)  the nations lower on the list should adopt more politically restrictive policies.
D)  political freedom is detrimental to economic freedom.E) B) and D)
F) All of the above

Question 11

In a pure 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 dictated by the interaction of demand and supply.

Accepted Answer

A) True 
 B)False

Question 12

To guarantee that elected representatives can be held accountable for their actions by the electorate,an ideal representative democracy has a number of safeguards.Which of the following is NOT an example of a safeguard in an ideal representative democracy?

Accepted Answer

A)  A fair court system that is independent from the political system
B)  Universal adult suffrage
C)  An individual's right to freedom of expression,opinion,and organization
D)  Unlimited terms for elected representativesE) C) and D)
F) B) and C)

Question 13

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called:

Accepted Answer

A)  political risk.
B)  economic risk.
C)  ethical risk.
D)  legal risk.E) A) and C)
F) A) and B)

Question 14

According to the Foreign Corrupt Practices Act,it is illegal to make grease payments to expedite or secure the performance of a routine governmental action.

Accepted Answer

A) True 
 B)False

Question 15

Economist Amartya Sen emphasizes on basic healthcare and basic education as important factors of economic development.Which of the following statements best substantiate his argument?

Accepted Answer

A)  Healthcare and education are the fastest growing sectors and it is prudent to concentrate resources on these sectors.
B)  Multinational firms stipulate healthcare and education as key criteria for investment in foreign markets.
C)  People cannot develop their capabilities if they are chronically ill or woefully ignorant.
D)  Healthcare and education are key factors in attracting foreign direct investment in local markets.E) A) and B)
F) None of the above

Question 16

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called _____ rights.

Accepted Answer

A)  resource
B)  asset
C)  taxable
D)  propertyE) B) and D)
F) A) and B)

Question 17

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life,and opposing political parties are prohibited.

Accepted Answer

A)  Capitalism
B)  Totalitarianism
C)  Democracy
D)  CollectivismE) A) and D)
F) B) and C)

Question 18

China,Vietnam,Laos,North Korea,and Cuba are no longer totalitarian states.

Accepted Answer

A) True 
 B)False

Question 19

The United States practices pure democracy.

Accepted Answer

A) True 
 B)False

Question 20

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Accepted Answer

A) True 
 B)False

Exam 2: National Differences in Political Economy

Correct Answer
verified
People in the West tend to associate a r...
View Answer

_ and _ can be considered as the engines of long-run economic growth.

Correct Answer
verified

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Correct Answer
verified

Your company has business interests in a country where the President-elect has won on a platform of a return to socialism and protectionism.Consequently,you are concerned about the _____ risks of continuing to do business in that country.

Correct Answer
verified

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called _____ rights.

Correct Answer
verified

Which of the following is one of the reasons for the spread of democracy in the world?

Correct Answer
verified

According to the Foreign Corrupt Practices Act,it is illegal to make grease payments to expedite or secure the performance of a routine governmental action.

Correct Answer
verified

In a pure 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 dictated by the interaction of demand and supply.

Correct Answer
verified

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s are examples of theocratic totalitarianism.

Correct Answer
verified

The two top states in the 2009 Heritage Foundation index of the freest economies in the world,Hong Kong and Singapore,cannot be classified as politically free.This indicates that:

Correct Answer
verified

To guarantee that elected representatives can be held accountable for their actions by the electorate,an ideal representative democracy has a number of safeguards.Which of the following is NOT an example of a safeguard in an ideal representative democracy?

Correct Answer
verified

Economist Amartya Sen emphasizes on basic healthcare and basic education as important factors of economic development.Which of the following statements best substantiate his argument?

Correct Answer
verified

According to Freedom House _____ of the world's nations can be classified as free in 2009.

Correct Answer
verified

The United States practices pure democracy.

Correct Answer
verified

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called:

Correct Answer
verified

_____ is regarded as a yardstick for the economic activity of a country,and it measures the total annual income received by residents of a nation.

Correct Answer
verified

China,Vietnam,Laos,North Korea,and Cuba are no longer totalitarian states.

Correct Answer
verified

The communist version of socialism reached its high point in:

Correct Answer
verified

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life,and opposing political parties are prohibited.

Correct Answer
verified

Which of the following is an advantage of a market economy?

Correct Answer
verified

Exam 2: National Differences in Political Economy

Correct AnswerverifiedPeople in the West tend to associate a r...View AnswerShow Answer

_____ and _____ can be considered as the engines of long-run economic growth.

Correct AnswerverifiedShow Answer

The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.

Correct AnswerverifiedShow Answer

Your company has business interests in a country where the President-elect has won on a platform of a return to socialism and protectionism.Consequently,you are concerned about the _____ risks of continuing to do business in that country.

Correct AnswerverifiedShow Answer

The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called _____ rights.

Correct AnswerverifiedShow Answer

Which of the following is one of the reasons for the spread of democracy in the world?

Correct AnswerverifiedShow Answer

According to the Foreign Corrupt Practices Act,it is illegal to make grease payments to expedite or secure the performance of a routine governmental action.

Correct AnswerverifiedShow Answer

In a pure 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 dictated by the interaction of demand and supply.

Correct AnswerverifiedShow Answer

The fascist regimes that ruled Germany and Italy in the 1930s and 1940s are examples of theocratic totalitarianism.

Correct AnswerverifiedShow Answer

The two top states in the 2009 Heritage Foundation index of the freest economies in the world,Hong Kong and Singapore,cannot be classified as politically free.This indicates that:

Correct AnswerverifiedShow Answer

To guarantee that elected representatives can be held accountable for their actions by the electorate,an ideal representative democracy has a number of safeguards.Which of the following is NOT an example of a safeguard in an ideal representative democracy?

Correct AnswerverifiedShow Answer

Economist Amartya Sen emphasizes on basic healthcare and basic education as important factors of economic development.Which of the following statements best substantiate his argument?

Correct AnswerverifiedShow Answer

According to Freedom House _____ of the world's nations can be classified as free in 2009.

Correct AnswerverifiedShow Answer

The United States practices pure democracy.

Correct AnswerverifiedShow Answer

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called:

Correct AnswerverifiedShow Answer

_____ is regarded as a yardstick for the economic activity of a country,and it measures the total annual income received by residents of a nation.

Correct AnswerverifiedShow Answer

China,Vietnam,Laos,North Korea,and Cuba are no longer totalitarian states.

Correct AnswerverifiedShow Answer

The communist version of socialism reached its high point in:

Correct AnswerverifiedShow Answer

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life,and opposing political parties are prohibited.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a market economy?

Correct AnswerverifiedShow Answer

Correct Answer
verified
People in the West tend to associate a r...
View Answer

_ and _ can be considered as the engines of long-run economic growth.

Correct Answer
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