Question 1

Author Francis Fukuyama envisioned a world split into different civilizations,each of which has its own value systems and ideology.

Accepted Answer

The late influential political scientist Samuel Huntington envisioned a world split into different civilizations, each of which has its own value systems and ideology. Fukuyama has said that the war of ideas may be at an end and that liberal democracy has triumphed.

Question 2

Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.

Accepted Answer

Many totalitarian regimes, such as those in the Soviet Union and North Korea, focused on centralizing power and control, often at the expense of economic growth and development. Their command economies and lack of incentives for innovation and entrepreneurship often led to inefficiency and shortages of goods and services, ultimately failing to improve the standard of living for the majority of people under their rule.

Question 3

The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems.

Accepted Answer

False

Question 4

The Gross national income (GNI)per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).

Accepted Answer

Amartya Sen's conception of development emphasizes capabilities and human well-being, which are better captured by the Human Development Index (HDI) than by Gross National Income (GNI) per capita, as HDI includes health and education indicators in addition to income.

Question 5

Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth,define innovation broadly to include not just new products but also new processes,new organizations,new management practices,and new strategies.

Accepted Answer

Economists do define innovation broadly to include all of these elements, as they all contribute to long-run economic growth.

Question 6

A strong belief that economic progress leads to adoption of a totalitarian regime underlies the fairly permissive attitude that many Western governments have adopted toward human rights violations in China.

Accepted Answer

The answer of A strong belief that economic progress leads...

Question 7

In Amartya Sen's view,development is solely an economic process,and not a political process.

Accepted Answer

Amartya Sen's perspective is that development cannot be reduced to a purely economic process, but rather it is a multi-dimensional process that includes political, social, and cultural dimensions as well.

Question 8

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation,entrepreneurial activity,and hence economic growth.

Accepted Answer

Strong legal protection of property rights encourages individuals to invest in their ideas and inventions without fear of them being stolen or copied by others. This creates an environment that is conducive to innovation and entrepreneurial activity, which in turn leads to economic growth. If property rights are not protected, individuals and businesses become less likely to invest time and resources in creating new ideas and products, as they would have no guarantee of being able to reap the rewards of their innovation.

Question 9

According to Freedom House,all democracies are free countries in terms of political and civil liberties.

Accepted Answer

While most democracies tend to be free countries, not all free countries are necessarily democracies. There are certain countries with authoritarian regimes that may have certain political and civil freedoms, but do not have fair and free elections or other democratic features. Therefore, not all democracies are free countries in terms of political and civil liberties.

Question 10

New information and communication technologies have increased a state's ability to control access to uncensored information.

Accepted Answer

New information and communication technologies, including satellite television, fax machines, desktop publishing, and, most important, the Internet, have reduced a state's ability to control access to uncensored information.

Question 11

The late Influential political scientist Samuel Huntington predicted that the universalization of Western liberal democracy will be the final form of human government.

Accepted Answer

While Samuel Huntington did predict in his book "The Clash of Civilizations and the Remaking of World Order" that Western liberal democracy would become more widespread, he did not believe it would be the final form of human government. He argued that different civilizations would continue to develop their own unique forms of government and that conflict between them was inevitable.

Question 12

If a country's economy is to sustain long-run economic growth,the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Accepted Answer

A conducive business environment that supports innovation and entrepreneurship is necessary for sustained economic growth in a country. Without a supportive environment, businesses may struggle to innovate and grow, leading to stagnation in the economy.

Question 13

Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies.

Accepted Answer

This statement is false. In market economies, entrepreneurial individuals have more economic incentives to develop valuable new innovations. They can create new products or services and sell them for a profit, which motivates them to continue innovating and improving their offerings. In planned economies, there may be less incentive for innovation as the government controls production and distribution, limiting the opportunities for entrepreneurship.

Question 14

In Samuel Huntington's thesis,global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.

Accepted Answer

In his thesis, Samuel Huntington argues that global terrorism is a result of the clash between various civilizations and their differing value systems and ideologies.

Question 15

According to the influential economist Jeffrey Sachs,tropical regions have a more extensive division of labor than temperate regions.

Accepted Answer

The influential economist Jeffrey Sachs argues that temperate climes have generally supported higher densities of population and thus a more extensive division of labor than tropical regions.

Question 16

Totalitarian states that limit human freedom are highly conducive to progress in terms of innovation,entrepreneurship,and economic growth.

Accepted Answer

Totalitarian states that limit human freedom tend to stifle creativity, suppress independent thinking, and discourage risk-taking, which are all essential elements for innovation, entrepreneurship, and economic growth. In such states, the government has total control over economic activities, which often leads to inefficiencies, corruption, and mismanagement. Moreover, these regimes tend to prioritize short-term gains over long-term sustainability, which can result in environmental degradation and social unrest. Therefore, it is not true that totalitarian states are highly conducive to progress in terms of innovation, entrepreneurship, and economic growth.

Question 17

During the late 1980s and early 1990s,totalitarian governments collapsed and were replaced by democratically elected governments.

Accepted Answer

This is true. The late 1980s and early 1990s saw the collapse of a number of totalitarian governments, including in Eastern Europe and the Soviet Union, and the establishment of new democracies in their place. Examples include the fall of the Berlin Wall and the subsequent reunification of Germany, the Velvet Revolution in Czechoslovakia, and the end of apartheid in South Africa.

Question 18

Although countries such as China and India are currently relatively poor,their economies are already large in absolute terms and growing more rapidly than those of many advanced nations.

Accepted Answer

This statement is true. Both China and India have large economies and are experiencing rapid economic growth.

Question 19

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: democratic governments.

Accepted Answer

The statement is false. None of these economies had democratic governments at the start of their economic growth. South Korea, Taiwan, and Singapore were authoritarian regimes during their early years of economic development, while China and Hong Kong were under communist rule.

Question 20

The purchasing power parity for different countries is adjusted (up or down)depending upon whether the cost of living is lower or higher than in the United States.

Accepted Answer

Purchasing power parity takes into account the cost of living in different countries and adjusts the exchange rate accordingly. If the cost of living is lower in a country compared to the United States, the exchange rate is adjusted upwards to reflect the greater purchasing power of the local currency. Similarly, if the cost of living is higher in a country compared to the United States, the exchange rate is adjusted downwards to reflect the lower purchasing power of the local currency.

Quiz 3: Political Economy and Economic Development