Chat with AIExam 3: National Differences in Economic Development
What is gross national income? Is it related to purchasing power parity?
(33) 
VerifiedA common measure of economic development is a country's gross national income (GNI)per head of population.GNI is regarded as a yardstick for the economic activity of a country; it measures the total annual income received by residents of a nation.GNI per person figures can be misleading because they don't consider differences in the cost of living.To account for differences in the cost of living,one can adjust GNI per capita by purchasing power.Referred to as a purchasing power parity (PPP)adjustment,it allows for a more direct comparison of living standards in different countries.
What are the factors that determine the costs of doing business in a country?
(43) VerifiedA number of political,economic,and legal factors determine the costs of doing business in a country.With regard to political factors,a company may have to pay off politically powerful entities in a country before the government allows it to do business there.With regard to economic factors,one of the most important variables is the sophistication of a country's economy.As for legal factors,it can be more costly to do business in a country where local laws and regulations set strict standards with regard to product safety,safety in the workplace,environmental pollution,and the like (since adhering to such regulations is costly).
_____ is required for a business environment to be conducive to innovation and entrepreneurial activity.
(37) VerifiedB
Anecdotal comparisons suggest that the assertion that nations that invest more in education will have higher growth rates is true.
(42) In a planned economy,the means of production are owned by private individuals.
(26) 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.
(33) The sale of state assets through an auction is most likely to lead to _____.
(33) Countries with free market economies in which property rights are protected tend to achieve lower economic growth rates than command economies where property rights are poorly protected.
(39) Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises.
(37) According to political scientist Samuel Huntington's thesis,global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.
(36) One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.
(34) Why does doing business in a country with a relatively unsophisticated economy result in increased costs?
(35) 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 _____.
(42) 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 _____.
(39) What are the factors that contribute to the risks of doing business in a country?
(37) In mixed economies,in certain sectors the state set prices,owned businesses,limited private enterprise,restricted investment by foreigners,and restricted international trade.
(35) Which of the following is a characteristic of a command economy?
(37) 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.
(33) 
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