Exam 3: National Differences in Economic Development

Since the late 1980s, there has been a spread of democracy. This is because

The political economy of many of the world's nation-states has changed radically since the late 1980s. Which of the following is a trend that has been evident?

Since the 1980s, there has been a transformation from centrally planned command economies to market-based economies. What is the rationale for this transformation?

Hong Kong has economic freedom, so it follows that it also has political freedom.

________ is seen as a way to stimulate gains in economic efficiency by giving owners a powerful incentive-the reward of greater profits-to search for increases in productivity, to enter new markets, and to exit losing ones.

The finance minister of a country considers several large, state-owned iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote economic growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies

For privatization to work, it must also be accompanied by

Which of the following is one of the measures that HDI is based on?

A market economy encourages innovation because

________ is required for a business environment to be conducive to innovation and entrepreneurial activity.

One visible indicator of ________ tends to be a country's inflation rate.

By identifying and investing early in a potential future economic star, international firms can ________ and gain experience in that country's business practices.

Transformation from centrally planned command economies to market-based economies can be attributed to the fact that command and mixed economies failed to deliver the sustained economic performance achieved by countries adopting market-based systems.

Many countries in Africa score below 0.5 on the Human Development Index. This means that these countries have

Since the late 1980s, there has been a strong move away from a more free market economic model and toward more centrally planned and mixed economies.

One of the reasons for the spread of democracy is the emergence of ________ who have pushed for democratic reforms.

Some ________ have fostered a market economy and strong property rights protection and have experienced rapid economic growth.

To account for differences in the cost of living, one can adjust GNI per capita by ________, which allows for a more direct comparison of living standards in different countries.

GNI and PPP data are useful because they provide a ________ of economic development.

Many totalitarian regimes were able to deliver economic progress to the vast bulk of their populations, which curbed the spread of democracy during the late 1980s.