Deck 5: Economics and Emerging Markets

Question 1

In China,family relationships rarely enter the business environment.

Answer 1

False

Question 2

Canada and the United States are examples of contemporary market economies.

Answer 2

True

Question 3

Collectivist cultures tend to offer fewer incentives and rewards than individualist cultures.

Answer 3

True

Question 4

Free choice in a market economy gives individuals access to alternative purchase options.

Question 5

As supply and demand change for a good or service,so does its selling price.

Question 6

In a mixed economy,extensive government ownership on a national level tends to result in a lack of accountability.

Question 7

The ultimate goal of a market economy is to achieve a wide range of political,social,and economic objectives by taking complete control over production and distribution of the nation's resources.

Question 8

Development of a country's economy can influence aspects of its culture.

Question 9

Central planning is rooted in the ideology that the welfare of the group is more important than individual well-being.

Question 10

Incentives and rewards for individual business initiatives are an important component of collectivist cultures.

Question 11

No economic system reflects a completely individual or group cultural orientation.

Question 12

Entrepreneurs are businesspeople who accept the risks and opportunities involved in creating and operating new business ventures.

Question 13

China and Taiwan have both gained entry into the World Trade Organization in recent years.

Question 14

Interfering with the price mechanism violates a fundamental principle of the market economy.

Question 15

German philosopher Helmut Newton popularized the idea of central planning in the nineteenth century.

Question 16

When China regained control of Hong Kong,it promised to implement a "one country,two systems" scenario to support economic and political freedom in Hong Kong.

Question 17

The Chinese term guanxi means government ownership.

Question 18

Economic development is a measure for gauging the economic well-being of one nation's people as compared with that of another nation's people.

Question 19

China's leaders describe its economic philosophy as "socialism with Chinese characteristics."

Question 20

The biggest contributor to China's unemployment rate is its reunification with Hong Kong.

Question 21

Political instability in the form of intensified nationalism potentially threatens Russia's progress toward economic transition.

Question 22

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Question 23

Which of the following people popularized the idea of central economic planning?

A)Mao Zhe Dong
B)Karl Marx
C)Mikhail Gorbachev
D)Henry Fayol

Question 24

Which of the following was NOT true of centrally planned economies?

A)At the time of their collapse,standards of living in most centrally planned economies were at or above those of market economies.
B)Basic necessities were often not provided to citizens in centrally planned economies.
C)Underground economies for goods and services thrived in most centrally planned economies.
D)Prices on the black market were much higher than the official prices set by governments.

Question 25

Barter is a popular alternative for buyers lacking the hard currency needed to pay for imports.

Question 26

A ________ is a system in which the government owns a nation's land,factories,and other economic resources.

A)mixed economy
B)market economy
C)centrally planned economy
D)laissez-faire economy

Question 27

North Korea practises a policy of self-reliance known as ________.

A)guanxi
B)laissez-faire
C)juche
D)karoshi

Question 28

Nations are commonly classified as being either developed,newly industrialized,or developing.

Question 29

Both GDP per capita and GNP per capita measure a nation's income per person.

Question 30

All the following are true of centrally planned economies EXCEPT ________.

A)government determines who produces what products
B)government determines the prices of products and labour
C)factories are privately owned
D)government sets production goals

Question 31

The United Nations' human development index (HDI)measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living.

Question 32

In most failed centrally planned economies,________.

A)market conditions helped determine who produced various goods
B)prices of products were a function of supply and demand
C)central planning agencies specified production goals and decided prices
D)central planners paid attention to efficiency improvement

Question 33

A by-product of the centrally planned economy was the emergence of which of the following?

A)Black markets
B)Public markets
C)Free enterprise system
D)Market economy

Question 34

One of the key obstacles faced by countries in economic transition is the lack of managerial expertise.

Question 35

The human development index (HDI)demonstrates that high national income alone does not guarantee human progress.

Question 36

Nations with the poorest infrastructures and lowest personal incomes are called developing countries.

Question 37

Central planning is rooted in the ideology that ________.

A)the welfare of the group is more important than individual well-being
B)individual concerns should be placed above group consensus
C)individual and group concerns are just as important as government concerns
D)privatization will enhance a country's economic well-being

Question 38

A country's ________ system consists of the structure and processes it uses to allocate its resources and conduct its commercial activities.

A)political
B)economic
C)social
D)cultural

Question 39

Businesspeople who accept the risks and opportunities involved in creating and operating new business ventures are called ________.

A)managers
B)supervisors
C)entrepreneurs
D)central planners

Question 40

Volunteer work and unpaid household work are both counted in GNP and GDP.

Question 41

In China,businesspeople do which of the following?

A)Follow a strategy for forming business relationships that is similar to their Western counterparts.
B)Focus on establishing tight formal contracts.
C)Place greater importance on written contracts than on personal relationships.
D)Establish a trusting relationship before proceeding with business.

Question 42

Land,factories,and other economic resources are more equally split between private and government ownership in which of the following systems?

A)Market economy
B)Black market economy
C)Mixed economy
D)Centrally planned economy

Question 43

One of the most important factors in forming a successful venture in China is guanxi,which means ________.

A)bribing government officials
B)manufacturing inexpensive products
C)personal relationships
D)adhering to Confucianism

Question 44

France,Germany,and Sweden are examples of which of the following?

A)Centrally planned economies
B)Market economies
C)Global economies
D)Mixed economies

Question 45

Which of the following is NOT true of good guanxi in China?

A)Business before pleasure.
B)Business partners are sometimes invited to family functions.
C)Contacts are more important than contracts.
D)Cultural sensitivity is critical to success.

Question 46

All of the following comprise the ultimate goals of a mixed economy EXCEPT ________.

A)low unemployment
B)high government ownership of industry
C)steady economic growth
D)an equitable distribution of wealth

Question 47

Which of the following is NOT an example of a mixed economy?

A)France
B)Sweden
C)India
D)United States

Question 48

The sale of government-owned economic resources to private operators is called ________.

A)nationalization
B)laissez-faire economics
C)privatization
D)guanxi

Question 49

In a market economy,nearly all economy-related decisions are determined by the interplay of ________.

A)government and individuals
B)supply and demand
C)customers and employees
D)large and small businesses

Question 50

In Country A,the government maintains control over the banking industry.If Country A is a mixed economy,which of the following is most likely true?

A)Businesses in most economic sectors of Country A are privately owned.
B)The government of Country A views the banking sector as important to national security.
C)Country A has never experienced threats to its long-term stability.
D)The government of Country A views banking as more important than manufacturing.

Question 51

In a mixed economy,governments influence economic activity through ________.

A)laws restricting foreign businesses
B)special incentive through subsidies
C)participation in WTO
D)policy of no involvement in the economy

Question 52

Laissez-faire economics refers to which of the following?

A)A centrally planned economic system
B)Government-controlled commerce and individual control effort
C)Less government interference in commerce and greater individual economic freedom
D)Creating monopolies through government partnership

Question 53

Supply and demand in a market economy are dictated by which of the following?

A)Privatization
B)Production quotas
C)The price mechanism
D)Government intervention

Question 54

In a market economy,access to alternative purchase options is known as ________.

A)free choice
B)free enterprise
C)purchase flexibility
D)laissez-faire

Question 55

Market economics is rooted in which of the following beliefs?

A)Group concerns should be placed above individual concerns.
B)Individual concerns should be placed above group concerns.
C)Individual and group concerns are of equal importance.
D)Totalitarianism enhances a country's economic well-being.

Question 56

Comparing market economies with centrally planned economies,which of the following statements is most accurate regarding the element of free choice?

A)Consumers have free choice in both types of economies.
B)Free choice exists in market economies,but choices are restricted in planned economies.
C)Consumers do not have free choice in either of these economies.
D)Planned economies allow for greater free choice than do market economies.

Question 57

Several research studies are published that document the health benefits of a certain grain.What is the most likely economic result of these findings?

A)Demand for the grain increases.
B)Demand for the grain decreases.
C)The price of the grain decreases.
D)Reserves of the grain increase worldwide.

Question 58

Which of the following is the main goal of privatization?

A)Reduce responsibility and accountability
B)Increase economic efficiency
C)Increase subsidies to companies
D)Slow economic growth

Question 59

To function smoothly and properly,a market economy requires all of the following EXCEPT ________.

A)free enterprise
B)free monopoly
C)price flexibility
D)free choice

Question 60

If insects were to destroy coffee crops in key producer countries worldwide,which of the following would most likely occur within the coffee market?

A)Coffee prices would increase.
B)Demand for coffee would be reduced.
C)Demand for coffee would increase.
D)Governments would buy up excess coffee crops.

Question 61

A philanthropical organization wishes to bring an assistance initiative to a country with a low GNI.Which of the following would the organization most likely choose?

A)Angola
B)Syria
C)Eygpt
D)Madagascar

Question 62

The GDP per capita of Country A is lower than that of France.If the GDP per capita of Country A is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about Country A?

A)The cost of living in Country A is lower than that of France.
B)The cost of living in Country A is higher than that of France.
C)The cost of living in Country A is approximately equal to that of France.
D)The cost of living in Country A has decreased over the past decade.

Question 63

In a market economy,________ allows most prices to rise and fall to reflect the forces of supply and demand.

A)free choice
B)free enterprise
C)price flexibility
D)laissez-faire

Question 64

After a natural disaster,an organization ranks the affected countries in terms of their gross national income and provides assistance to the lowest-ranking countries first.Which of the following countries would most likely receive aid first?

A)Japan
B)Cambodia
C)Thailand
D)Indonesia

Question 65

The value of all goods and services produced by the domestic economy over a one-year period is called ________.

A)gross domestic product (GDP)
B)human development index (HDI)
C)gross national product (GNP)
D)purchasing power parity (PPP)

Question 66

A country's level of economic development reflects all of the following EXCEPT its ________.

A)economic output
B)currency value relative to that of other countries
C)infrastructure
D)citizen's physical health and level of education

Question 67

________ is the value of goods and services that can be purchased with one unit of a country's currency.

A)Economic development
B)Gross national product
C)Purchasing power
D)Gross domestic product

Question 68

An investor is looking for three countries with similar GNI levels.Which of the following would most likely make up such a group?

A)Russia,Romania,Bulgaria
B)Angola,Sudan,Chad
C)Cambodia,Thailand,South Korea
D)Turkey,Morocco,Greece

Question 69

Which of the following is the broadest measure of economic development?

A)Gross domestic product (GDP)
B)Purchasing power parity (PPP)
C)Gross national product (GNP)
D)Human development index (HDI)

Question 70

When one company is able to control a product's supply-and therefore its price-it is considered a(n)________.

A)state-owned company
B)supply-driven company
C)underground company
D)monopoly

Question 71

A company is researching new markets by comparing potential countries in terms of their human development index (HDI)scores.The company wishes to expand into a market where individuals experience a very high level of total well-being.Which of the following countries would the company most likely choose?

A)Russia
B)Mexico
C)China
D)Japan

Question 72

Which of the following would most likely characterize a nation with a low degree of economic freedom?

A)Low government intervention
B)Protected property rights
C)Price controls
D)Low tariffs

Question 73

If HDI (human development index)is a measure of the government's ability to provide its citizens with a high quality of life,which of the following governments could best be described as closely matched in that ability?

A)China and Hong Kong
B)Czech Republic and Russia
C)United Kingdom and Germany
D)Japan and Hong Kong

Question 74

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

A)Volunteerism
B)Underground transaction
C)Barter
D)Guanxi

Question 75

The GDP per capita of Country X is higher than that of Thailand.If the GDP per capita of Country X is adjusted for PPP,the country's revised GDP is lower than that of Thailand.Which of the following is most likely true about Country X?

A)There are fewer types of everyday goods available for purchase in Country X than in Thailand.
B)The cost to buy everyday goods in Country X is approximately the same as the cost in Thailand.
C)It costs less to buy everyday goods in Country X than it does to buy similar goods in Thailand.
D)It costs more to buy everyday goods in Country X than it does to buy similar goods in Thailand.

Question 76

An American-owned business based in Russia is having trouble meeting its payroll.Which of the following would be most effective for the business to use for bartering purposes?

A)Cleaning products
B)Paper goods
C)Vodka
D)Fabric

Question 77

Which of the following are used to control taxation and government spending?

A)Fiscal policies
B)Monetary policies
C)Bureaucratic policies
D)Development policies

Question 78

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living?

A)Economic development index
B)Gross national product index
C)Human development index
D)Purchasing power index

Question 79

An investor wishes to invest in a business in a country with a relatively high gross national income (GNI).Which of the following countries would most likely qualify as a prospect?

A)Nepal
B)India
C)Japan
D)Vietnam

Question 80

Which of the following would most likely characterize a nation with a high degree of economic freedom?

A)Low tariffs
B)Wage controls
C)Price controls
D)Flourishing black markets