Exam 3: National Differences in Economic Development

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?

A well-functioning market economy requires laws protecting private property rights and providing mechanisms for contract enforcement.

A change in political regime in a country can result in laws that _____ to international businesses.

Anecdotal comparisons suggest that the assertion that nations that invest more in _____ will have higher growth rates is true.

Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living?

Political scientist _____ predicts that there will be a world that is split into different civilizations, each of which has its own value systems and ideology.

Life expectancy at birth is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they:

Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations?

_____ are the advantages gained by early entrants into a market.

Economic freedom necessarily equates with political freedom.

Economic growth appears to be a function of a country's capacity for growth and its _____.

_____ are the handicaps that late entrants to a market might suffer.

What are the factors that determine the costs of doing business in a country?

Jeffrey Sachs argues that by virtue of _____, certain societies are more likely to engage in trade than others and are thus more likely to be open to and develop market-based economic systems, which in turn promotes faster economic growth.

In some countries, the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

In a command economy, the prices are determined by the free interplay of demand and supply.

Which of the following are more conducive to economic growth?

GNI per capita can be adjusted by _____ to account for differences in the cost of living.

Which of the following factors is likely to make a country a more attractive location for international business?