IB Quiz Ch 4

To determine whether the standard of living within a country is rising or falling, economists would most likely use which of the following measures? a. per capita GNI b. GNI growth rate c. purchasing power parity d. degree of human development

b. GNI growth rate

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 ___ a. destabilize poverty taxes b. achieve low unemployment c. restrict economic growth d. inequitably distribute wealth

b. achieve low unemployment

____ is a general, sustained rise in prices measured against a standard level of purchasing power a. deflation b. inflation c. expansion d. reflation

b. inflation

History suggests that if the economic crisis worsens, we are likely to see more people question the ____ a. fall of communism b. of capitalism c. practicality of mixed market economies d. correlation between economic freedom and prosperity

b. legitimacy of capitalism

During a time of inflation, the government is most likely to ___ a. lower taxes b. print money c. reduce interest rates d. support infrastructure

b. print money

The recent global financial crisis has interrupted the trend of national economies _____ a. rapidly adopting the command market model b. steadily adopting the free market model c. moving from the mixed to the command model d. turning away from the mixed model

b. steadily adopting the free market model

True or false: Gross domestic product is the value of production that takes place within a nation's border, without regard to whether the production is done by domestic or foreign factors of production

True

The ____ view calls for companies to develop low-cost, high-powered, resource-minimizing innovations that can be marked to the billions of people living on less than a few dollars a day a. Base of the Pyramid b. Hierarchy of Needs c. Happy Planet Index d. Gini coefficient

a. Base of the Pyramid

Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ____ 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 contribute to social injustices d. centrally planned economies are best designed to deliver progress

a. economic growth is directly related to economic freedom

The recent global financial crisis has led to which of the following? a. governments seeking to impose more constraints on capitalism b. governments seeking to eliminate constraints on capitalism c. governments seeking to increase the interdependence of developing economies d. governments seeking to eliminate the interdependence of developing economies

a. governments seeking to impose more constraints on capitalism

An economic system is the set of structures and processes that ____ in a country a. guides the allocation of resources and shapes the conduct of business activities b. directs the movement of specific products to specific customers c. sets the standards of competitive success for companies in the economy d. stipulates the roles and responsibilities of consumers

a. guides the allocation of resources and shapes the conduct of business activities

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering? a. Indonesia b. Chile c. Russia d. Bangladesh

c. Russia

) Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S. dollars. Which of the following is Eileen most likely trying to determine? a. purchasing power parity b. economic growth rate c. gross domestic income d. gross national product

c. gross domestic income

Market economies are primarily characterized by _____ a. formal cooperation among government, companies, and workers to achieve stable growth b. heavy government spending and high taxation to pay for a range of social services c. minimal governmental participation d. restricted consumer powers

c. minimal government participation

Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ___ a. standardization procedures implemented by state b. high economic growth rates for the long term c. privatization of many factors of production d. violent political and legal upheaval

c. privatization of many factors of production

Which of the following is not a characteristic of capitalism? a. private ownership of assets b. right to profit from individual effort c. state control of factors of production d. private control of investment

c. state control of factors of production

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? 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

c.what is the likelihood that Apex can fill manufacturing positions with locals

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

d. emerging economies are adopting the principles and practices of free markets

Which of the following calls for economic activity that meets needs without hindering the future needs of society? a. privatization b. state capitalism c. economic freedom d. sustainable developmet

d. sustainable development

True or false: When analyzing the key elements of a country's environment, it is best to apply a systems perspective

true