Exam 3: National Differences in Economic Development

Most property in poor countries is owned legally by investors.

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 _____.

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

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.

What is the philosophy of Amartya Sen?

GNI per person figures can be misleading because ____.

What are the factors that determine the long-run monetary benefits of doing business in a country?

_____ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate.

The state can expropriate the profits from innovation through legal means, such as _____.

The sale of state assets through an auction is most likely to lead to _____.

Economic risks are independent of political risk.

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

For privatization to work, it must also be accompanied by a more general deregulation and opening of the economy.

Which of the following is a step involved in the deregulation of a command economy?

Countries with _____ economies in which property rights are protected tend to achieve greater economic growth rates than other economies where property rights are poorly protected.

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

Discuss Samuel Huntington's views on Islamic fundamentalism.

Why does education lead to economic development?

Several of the fastest-growing Asian economies adopted more _____ governments during the past three decades, including South Korea and Taiwan.

In Sen's view, development is an economic process that should be assessed by material output measures such as GNI per capita.