Exam 3: National Differences in Economic Development

It may be more costly to do business in relatively primitive or undeveloped economies because of:

Since the 1980s, there has been a transformation from _____ economies to _____ economies.

In a _____, any individual who has an innovative idea is free to try to make money out of that idea by starting a business (by engaging in entrepreneurial activity).

_____ per person figures can be misleading because they don't consider differences in the cost of living.

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

The benefits of doing business in a country are a function of which of the following?

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms continue to receive subsidies from the state and if they are protected from foreign competition.

The _____ adjustment allows for a more direct comparison of living standards in different countries.

A free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of:

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

Totalitarian states promote human freedom and human development, which facilitates economic progress.

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms:

A market with a large number of consumers with low living standards will have a relatively large market when measured in economic terms.

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

Why does doing business in a country with a relatively unsophisticated economy result in increased costs?

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

Which of the following is a legal means by which the state can expropriate the profits from innovation?

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

Stagnation can occur in planned economies because:

Which of the following is a step in the shift toward a market-based economic system?