Question 1

Which of the following ideas calls for assessing a country's performance based on factors such as life expectancy,leisure time,and income equality?

Accepted Answer

The idea of assessing a country's performance based on factors such as life expectancy, leisure time, and income equality is known as happynomics. This concept is concerned with measuring the well-being and happiness of individuals and societies, rather than just economic growth and GDP, which are the primary focus of macroeconomics.

Question 2

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

Accepted Answer

The balance of payments summarizes all economic transactions (such as exports, imports, financial transfers, and investments) between a country and the rest of the world during a given period of time. A trade deficit only refers to the difference between a country's imports and exports, while the Gini coefficient measures income inequality. Purchasing power parity (PPP) is a measure of the relative value of currencies and is not a summary of economic transactions.

Question 3

Country X has a significant amount of external debt. Which of the following is the most likely cause?

Accepted Answer

The answer of Country X has a significant amount of...

Question 4

In a country's balance of payments,the ________ tracks all trade activity in merchandise.

Accepted Answer

The current account in a country's balance of payments records all trade activity in merchandise, as well as services, income, and current transfers. The capital account measures financial transactions such as investment and lending between a country and foreign entities. The payment account and deficit account are not terms typically used to describe components of a balance of payments.

Question 5

A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.

Accepted Answer

Denmark has a well-developed monetary policy framework, which is implemented by the Danmarks Nationalbank (the central bank of Denmark). Therefore, a firm with operations in Denmark can expect significant monetary policies, making option D incorrect. However, high taxes, significant regulation, and tough job-protection laws are all common expectations for firms operating in Denmark.

Question 6

Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ________.

Accepted Answer

The Hong Kong government is known for ensuring fair competition in the market, which is beneficial for companies like Tatum Manufacturing that are just entering the market. The government does not typically monitor market prices or control natural resources, and while they may provide some innovation incentives, it is not a guarantee.

Question 7

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

Accepted Answer

High degrees of economic freedom typically indicate minimal government intervention, which is likely to be attractive to a firm looking to expand into a new market. This allows for greater flexibility in operations and potentially more favorable business conditions for the company. Standardized minimum wages and laws favoring sustainability may not be as important factors in the firm's decision-making process. State-run corporations, on the other hand, could potentially present competition or limits on foreign investment.

Question 8

Uneven income distribution ________.

Accepted Answer

Uneven income distribution exists in almost every country, meaning it is a widespread phenomenon and not limited to specific nations or populations.

Question 9

During a time of reflation,the government is most likely to ________.

Accepted Answer

The answer of During a time of reflation,the government is...

Question 10

An economic system is the set of structures and processes that ________ in a country.

Accepted Answer

An economic system is responsible for guiding the allocation of resources (such as labor, capital, and natural resources) and shaping the conduct of business activities. It establishes frameworks for economic decision-making and production, as well as the distribution of goods and services. Additionally, economic systems can shape the distribution of wealth, income, and opportunities within a society.

Question 11

Which of the following governmental actions is LEAST likely to increase national debt?

Accepted Answer

T-bond sales involve the government borrowing money from investors who purchase the bonds, which adds to the national debt. However, since the government is obligated to pay back the amount borrowed plus interest, this could potentially lead to increased revenue in the future. Macro-stimulus plans, unemployment benefits, and corporate bailouts all involve government spending and would contribute to increasing the national debt.

Question 12

Which of the following calls for economic activity that meets present needs without hindering the future needs of society?

Accepted Answer

Sustainable development involves balancing economic growth with environmental and social considerations to ensure that current needs are met without compromising the ability of future generations to meet their needs.

Question 13

Presently,which of the following countries is best characterized as a pure example of a command economy?

Accepted Answer

Libya is the only country listed that is still a pure command economy.

Question 14

The Gini coefficient estimates a country's ________.

Accepted Answer

The Gini coefficient is a measure of income inequality within a population, so the best choice is D. It does not estimate gross national product or political and legal risk, and while there may be some correlation between the Gini coefficient and economic development, it is not the primary purpose of the index.

Question 15

Which of the following is most likely a FALSE statement about income inequality?

Accepted Answer

GNI (Gross National Income) is not always an accurate measure of a nation's wealth distribution as it only accounts for the total income earned within a country and does not consider how this income is distributed among its citizens. Other factors such as the Gini coefficient, which measures the degree of income inequality within a society, may provide a more accurate picture of income inequality. Therefore, statement B is false as GNI is not the most effective tool for estimating the relative wealth of a nation's citizens.

Question 16

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?

Accepted Answer

Pender Pharmaceuticals is focusing on the BRICs, which stands for Brazil, Russia, India, and China. Therefore, the only option from the given list that falls under the BRIC category is Russia. Options A, B, and D are not BRIC countries.

Question 17

According to the concept of green economics,measuring a country's economic performance should also take into account ________.

Accepted Answer

According to the concept of green economics, measuring a country's economic performance should also take into account ecological costs, such as the impact on the environment and natural resources. This takes into consideration the long-term sustainability of economic growth and development. Market share, population size, and cost-of-living increases do not necessarily account for the environmental impact of economic activities.

Question 18

The World Bank reports that approximately ________ percent of the world's population is poor.

Accepted Answer

According to the World Bank, approximately 80% of the world's population is considered poor, which means that they live on less than $10 a day.

Question 19

The two main categories in the balance of payments are the ________.

Accepted Answer

The two main categories in the balance of payments are the current account (which includes merchandise trade, services trade, and unilateral transfers) and the capital account (which includes external debt, foreign investment, and other capital flows). Therefore, option D is the correct answer. Option A is only partially correct as it includes only the merchandise trade and services trade, and option B includes only external debt and unilateral transfers. Option C is incorrect as it only includes merchandise trade and the capital account.

Question 20

The ________ view calls for companies to develop low-cost,high-powered,resource-minimizing innovations that can be marketed to the billions of people living on less than a few dollars a day.

Accepted Answer

The Base of the Pyramid (BOP) view is centered around creating affordable and sustainable products for the billions of people living on less than a few dollars a day. This approach encourages companies to develop low-cost, high-powered, resource-minimizing innovations that can be marketed to this demographic. The other options (Hierarchy of Needs, Happy Planet Index, Gini coefficient) are not relevant to this concept.

Quiz 4: The Economic Environments Facing Businesses