Question 1

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

Samuel Huntington is known for his "Clash of Civilizations" theory, not for predicting the universalization of Western liberal democracy as the final form of human government. That prediction is associated with Francis Fukuyama.

Question 2

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 is necessary for consistent production of product and process innovations and entrepreneurial activity, which are essential for sustainable economic growth in the long run.

Question 3

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 indeed define innovation in a broad sense that encompasses various aspects beyond just the creation of new products, as stated in the statement.

Question 4

The shift toward deregulation has been easier for former command economies than for mixed economies.

Accepted Answer

Former command economies often face more challenges in transitioning to deregulation due to the lack of existing market structures and institutions compared to mixed economies, which already have some market mechanisms in place.

Question 5

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

Accepted Answer

Totalitarian regimes often prioritize the needs of the ruling elite over the needs of the general population, leading to economic inequality and lack of progress for most people.

Question 6

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

Accepted Answer

This statement is true. Purchasing power parity takes into account the cost of living in different countries and adjusts for any differences in order to compare the purchasing power of different currencies. If a country has a lower cost of living than the United States, its purchasing power parity will be adjusted upwards, and vice versa.

Question 7

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

Accepted Answer

Totalitarian states may be able to achieve economic growth and innovation in certain areas, but this comes at the cost of severely restricting human freedoms and violating basic human rights. Innovation and entrepreneurship thrive best in societies that encourage creativity, diversity of thought, and free expression. Furthermore, economic growth that is achieved through oppressive means is often unsustainable and does not benefit the majority of the population.

Question 8

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

Accepted Answer

This statement is true. Many countries, particularly in Eastern Europe and Latin America, underwent a transformation from authoritarianism to democracy during this time period. Examples include Poland, South Africa, and Chile.

Question 9

In general,command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems.

Accepted Answer

Market-based systems, such as capitalism, have been shown to generally outperform command and mixed economies in terms of sustained economic performance. Command economies, such as communism, have a history of inefficiency and lack of innovation, while mixed economies, although often successful in specific industries or regions, can struggle with balancing government intervention with free market principles.

Question 10

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 because they can directly benefit from their success through profits and market share gains. In planned economies, the government may control the allocation of resources and limit the potential rewards for innovation, leading to less incentive for individuals to take risks and develop new ideas.

Question 11

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. These five economies did not have democratic governments at the start of their economic growth. Taiwan, South Korea, and Singapore were under authoritarian regimes until the 1980s, while Hong Kong was a British colony and China was a communist state.

Question 12

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

Accepted Answer

While democracies generally provide more political and civil liberties than authoritarian regimes, some democracies may still have restrictions on these freedoms, and therefore may not be considered fully "free" countries by Freedom House.

Question 13

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

The answer of The Peruvian development economist Hernando de Soto...

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

According to Samuel Huntington's thesis in his book "The Clash of Civilizations and the Remaking of World Order," global terrorism is a result of the clash between different civilizations' value systems, ideologies, and religious beliefs. He argues that cultural and religious differences between civilizations lead to conflicts and terrorist attacks.

Question 15

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

It is true that both China and India have large economies in absolute terms and are growing faster than many advanced nations, despite being relatively poor in terms of per capita income.

Question 16

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 ensures that businesses can safely invest in and develop their own ideas, products, and services without fear of theft or infringement. This fosters innovation and entrepreneurial activity, which leads to economic growth. Without such protection, businesses may be hesitant to invest in risky innovative activities, which can inhibit economic growth.

Question 17

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 belief that economic progress leads to political liberalization, not totalitarianism, has often influenced Western governments' attitudes towards China, hoping that economic engagement would lead to improved human rights.

Question 18

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

The answer of The gross national income (GNI)per capita comes...

Question 19

Economic freedom does not necessarily equate with political freedom.

Accepted Answer

Economic freedom refers to the ability of individuals and businesses to operate and compete in the marketplace with minimal government intervention. It is possible to have a high level of economic freedom without political freedom, meaning that individuals and businesses may be allowed to prosper without having the right to participate in political decision-making, freedom of speech, or other political rights.

Question 20

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

Accepted Answer

Amartya Sen believes that development is not solely an economic process, but a political one as well. He argues that political freedoms, such as freedom of speech and participation in decision-making, are crucial for development and cannot be separated from economic progress. Therefore, development is a complex and multi-dimensional process that involves both economic and political dimensions.

Quiz 3: National Differences in Economic Development