Question 1

At one time, economic stagnation resulted in Great Britain because the coal mining and telecommunications industries were

Accepted Answer

Economic stagnation in Great Britain was partly due to the coal mining and telecommunications industries being state-owned monopolies, which led to inefficiencies and lack of competition.

Question 2

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Accepted Answer

Adam Smith, in his seminal work "The Wealth of Nations," discussed how geographical factors can influence economic activities and policies, laying the groundwork for later theories on geography's impact on economic growth.

Question 3

Lindsey lives in a country where the state owns all the means of production and there is little incentive for entrepreneurial activity. Lindsey lives in a

Accepted Answer

In a planned economy, the government controls all means of production and there is little room for private enterprise or entrepreneurial activity.

Question 4

According to economist Hernando de Soto, the key issue in the relationship between capitalism and property rights is the inability of owners to

Accepted Answer

Hernando de Soto argues that the main issue is the inability of owners to establish legal title to their property, which prevents them from fully participating in the capitalist economy.

Question 5

The influential economist Jeffrey Sachs argues that which of the following, with their long engagements in international trade, have been the most supportive of market institutions throughout history?

Accepted Answer

Coastal states have historically been more engaged in international trade due to their access to sea routes, which has supported the development and spread of market institutions.

Question 6

According to Freedom House, just under ________ of the world's nations are considered "free."

Accepted Answer

Freedom House reports that approximately 50 percent of the world's nations are considered "free."

Question 7

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur?

Accepted Answer

The answer of China, South Korea, Taiwan, Singapore, and Hong...

Question 8

The country of Marita ensures strong legal protection of property rights. It is likely that the businesses and individuals in Marita will

Accepted Answer

Strong legal protection of property rights encourages investment and innovation by providing businesses and individuals with the confidence that their investments will be protected.

Question 9

Jason loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Jason has decided to stop inventing. What is preventing Jason from doing what he loves?

Accepted Answer

Weak property rights protection means that Jason's inventions can be easily copied without legal repercussions, discouraging him from inventing.

Question 10

An unfavorable environment for innovations and entrepreneurship is the result of

Accepted Answer

State monopoly in production limits competition and innovation, as the government controls production and there is little incentive for entrepreneurship.

Question 11

Only a totalitarian regime that is committed to ________ is capable of promoting economic growth.

Accepted Answer

The answer of Only a totalitarian regime that is committed...

Question 12

In the country of Bolar, the state owns key industries such as energy and transportation. The rest of the industries are privately owned. Bolar is a ________ economy.

Accepted Answer

Bolar is a mixed economy because it features both state-owned and privately-owned industries.

Question 13

Which of these countries demonstrates Jeffrey Sachs's argument about trade?

Accepted Answer

The answer of Which of these countries demonstrates Jeffrey Sachs's...

Question 14

People in the West tend to associate a(n) ________with a free market system, strong property rights protection, and economic progress.

Accepted Answer

A representative democracy is often associated with a free market system, strong property rights, and economic progress, as it typically supports individual freedoms and market-driven economies.

Question 15

During the late 1980s and early 1990s, many of the world's nation-states moved away from

Accepted Answer

During the late 1980s and early 1990s, many nation-states, particularly in Eastern Europe and the former Soviet Union, moved away from totalitarian governments towards more democratic systems. This period saw the collapse of communist regimes and a shift towards political and civil freedoms.

Question 16

The nation of Talden sold Talden Communications, a state-owned monopoly, to private investors. This is an example of

Accepted Answer

Privatization refers to the process of transferring ownership of a business, enterprise, or public service from the government to private individuals or organizations. In this case, Talden Communications was sold to private investors, making it an example of privatization.

Question 17

When considering innovations and entrepreneurship, it can be said that

Accepted Answer

Innovations in production and business processes typically lead to increased productivity of labor and capital, which is essential for economic growth.

Question 18

Which of these individuals can be considered an entrepreneur?

Accepted Answer

Shondra started a company, which involves taking on financial risks in the hope of profit, a key characteristic of entrepreneurship.

Question 19

Which activity engaged in by DenimExpress best exemplifies innovation?

Accepted Answer

Developing a new business model by selling directly to customers is an example of innovation as it involves creating a new way of doing business that can provide a competitive advantage.

Question 20

In the context of political economy, one notable development of the past 30 years has been the spread of

Accepted Answer

Over the past 30 years, there has been a significant spread of democracy worldwide, with many countries transitioning from authoritarian regimes to democratic forms of government.

Quiz 3: National Differences in Economic Development