Econ hw 1-3 for test 1

If GNI adjusted for cost of living in China is about $13,000 while GNI adjusted for cost of living is about $56,000 in the United States, then

Americans enjoy a higher standard of living.

Which of these is not a reason why democracy has spread around the world?

Communism has proven to be popular since the 1990s.

Which characteristic does not describe Saudi Arabia?

Diversified economy.

Which of the following countries has not experienced a totalitarian political system?

England

When government-run enterprises fail, what solution is possible?

Move the enterprises from the public sector to the private sector.

Give a reason why Brazil's economy is struggling.

The government must spend less due to pension obligations.

Based on the information on political economy in the text and the case on Venezuela above, which statement best characterizes the situation in Venezuela?

There is probably a high level of corruption within the government.

In many of the world's nation-states, there has been a move away from ________ since the late 1980s.

centrally planned command economies

An individual's right to do something may be restricted on the grounds that it runs counter to "the good of society" when the political system emphasizes

collectivism.

What political system has a government that is by the people, exercised either directly or through elected representatives?

democracy

The labor, energy, land, and capital a country relies on to source goods and services are known as

factors of production.

A society that emphasizes collectivism concerns itself more with preserving individual freedoms than serving the needs of society as a whole.

false

As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities.

false

In today's marketplace, outsourcing efforts are confined to manufacturing activities

false

Political, economic, and legal systems are known collectively as political economy. Each system of political economy is separate from the other systems and is therefore independent.

false

Sustained economic growth requires an economy that is centrally planned by a government authority.

false

To truly benefit from globalization, a firm needs to be a multinational conglomerate rather than a small or mid-size company.

false

What is the shift toward a more integrated and interdependent world economy called?

globalization

Agri-Corp manufactures large farm implements and currently sources component parts for these large machines from fifteen different companies around globe. They use these sources to take advantage of lower costs. This demonstrates the idea of

globalization of production

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice is an example of the

globalization of production.

__________ measures the total annual income received by residents of a nation.

gross national income

When Aristotle said that private property is more highly productive than communal property, he was advocating for

individualism

The development of new products, processes, organizations, management practices, and strategies is called

innovation

Fast food chain restaurants promote different menu choices in different countries depending on a range of factors such as demographics, local taste, income levels, and cultural values. This demonstrates that

significant differences still exist among national markets.

GNI figures are helpful in understanding an economy because they

tell us how poor a country is relative to another.

A legal system is required to provide incentives for economy activity.

true

Removing the restrictions that many governments put in place in markets will typically lead to economic growth.

true

Communists believed that socialism could only be achieved through

violent revolution.