Question 1

It is estimated that the total world population exceeded 15 billion people in 2012.

Accepted Answer

This statement is false. According to the United Nations, the world population reached 7.6 billion in 2017, and is projected to reach 9.8 billion by 2050.

Question 2

There is a close relationship between economic and social development and therefore many economic figures can be used as social indicators.

Accepted Answer

Economic development and social development are interconnected and often the progress of one can lead to progress in the other. Economic figures such as Gross Domestic Product (GDP) and poverty rates can be used as indicators of social well-being and development.

Question 3

The GDP per capita of the USA is higher than the GDP per capita of Australia.

Accepted Answer

As of the latest available data, Australia often has a higher GDP per capita than the USA, though this can vary with economic changes and exchange rates.

Question 4

The countries that are part of the Group of Eight are Canada, France, Germany, Italy, Japan, Russia, UK and the USA.

Accepted Answer

The Group of Eight (G8) consists of Canada, France, Germany, Italy, Japan, Russia, UK, and the USA.

Question 5

One factor behind the overall growth in households, and the subsequent decline in their average size, has been the increase in the numbers of divorced and sole survivor households.

Accepted Answer

Divorced and sole survivor households typically have fewer members than traditional nuclear families, which contributes to the decline in average household size. As the number of these types of households has increased over time, it has helped drive overall growth in the number of households.

Question 6

The Physical Quality of Life Index (PQLI)is a composite measure of the level of welfare in a country.It has two major components only: life expectancy and infant mortality.

Accepted Answer

The Physical Quality of Life Index (PQLI) only includes two major components: life expectancy and infant mortality, making it a composite measure of the level of welfare in a country.

Question 7

United Nations projections point to a population explosion, mainly in the developing nations.

Accepted Answer

According to United Nations projections, the global population is expected to reach 9.7 billion by 2050, with the majority of the growth occurring in developing countries.

Question 8

The world's developing countries have the most to gain from economic alliances like AFTA and ANCOM.

Accepted Answer

Economic alliances like AFTA (Association of Southeast Asian Nations Free Trade Area) and ANCOM (Andean Community of Nations) can provide developing countries with increased access to markets, technology, and investment, which can lead to higher economic growth and development. Additionally, these alliances can help to reduce trade barriers and promote regional cooperation, which can benefit all member countries. Therefore, developing countries have the most to gain from participating in economic alliances like AFTA and ANCOM.

Question 9

Only 1 per cent of the world's private investment goes to sub-Saharan Africa.

Accepted Answer

According to the United Nations Conference on Trade and Development (UNCTAD), only 1% of the world's private investment flows into sub-Saharan Africa.

Question 10

The more developed the economy, the more income distribution tends to converge towards the middle class.

Accepted Answer

This is generally true as economic development tends to lead to increased opportunities for education, employment, and wealth creation, which in turn leads to a larger middle class. However, there are exceptions; for example, some countries may experience a concentration of wealth among a small elite despite overall economic development.

Question 11

Since the recent GFC (global financial crisis), the World Trade Organization (WTO)is no longer the major, and most comprehensive, trade facilitation entity.

Accepted Answer

The statement is incorrect. The WTO still remains the major and most comprehensive trade facilitation entity since the global financial crisis.

Question 12

In markets where urbanisation is recent and taking place rapidly, the marketer faces additional responsibility as a change agent, especially when incomes may be low and the conditions for the proper use of products may not be adequate.

Accepted Answer

This statement correctly highlights the additional responsibility that marketers face in rapidly urbanizing markets with low incomes and inadequate product usage conditions. They may need to act as change agents to promote the proper use of products and educate consumers on their benefits.

Question 13

Despite an image of hopeless poverty, India has more middle-class consumers than Germany.

Accepted Answer

Despite the stereotype of poverty in India, the country actually has a large and growing middle class. In fact, as of 2021, India has more middle-class consumers than Germany.

Question 14

NIEs, or newly industrialising economies, cover places like Hong Kong and Taiwan.

Accepted Answer

NIEs are a group of countries that have recently achieved rapid industrialization and economic growth, including Hong Kong and Taiwan.

Question 15

OPEC is made up of 11 petroleum-exporting countries including Russia.

Accepted Answer

OPEC is actually made up of 13 countries, but Russia is not one of them. The 11 countries that are part of OPEC are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, and the United Arab Emirates.

Question 16

Engel's laws state that as a family's income increases, the percentage spent on food will decrease but the percentage spent on housing and household operations will remain roughly constant.

Accepted Answer

Engel's laws describe a general observation that as a family's income increases, the proportion of income that is spent on food decreases, while the proportion spent on housing and other non-food items remains roughly constant or may even increase slightly. This pattern has been observed in many different countries and over long periods of time. However, it is important to note that Engel's laws are based on averages and do not necessarily apply to every individual or family.

Question 17

Japan has the third-largest GDP in the world, only behind the USA and China.

Accepted Answer

The answer of Japan has the third-largest GDP in the...

Question 18

Europe will show negative population growth for the next decades.

Accepted Answer

Europe's birth rate has been declining for decades and the percentage of elderly people has been increasing. This trend is expected to continue, leading to negative population growth.

Question 19

Age distribution and life expectancy correlate heavily with the level of development of the market.

Accepted Answer

This statement is true as developed markets tend to have higher life expectancy and an older age distribution due to factors such as better healthcare and social welfare programs. Whereas, developing markets tend to have younger populations with lower life expectancy.

Question 20

China is economically developed in the east, north and west.

Accepted Answer

China's economic development is primarily concentrated in the eastern regions, with the west and north being less developed compared to the coastal east.

Quiz 2: The economic environment