Exam 3: National Differences in Economic Development

The government of a country takes over the airport security industries following a major terrorist attack,to improve airport security.This is an example of privatization.

The long-run monetary benefits of doing business in a country are a function of the size of the market,the present wealth of consumers in that market,and the likely future wealth of consumers.

Political freedoms is one of the measures used by the Human Development Index (HDI)to measure the quality of human life in different nations.

What are the conditions required to encourage innovation and entrepreneurship?

GNI per person figures can be misleading because _____.

Why are democratic regimes more conducive to economic growth than dictatorships?

How does the ownership structure of newly privatized firms affect its functioning?

Which of the following statements is true about Samuel Huntington?

Stagnation can occur in planned economies because:

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

It may be more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

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

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.

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

The benefits of doing business in a country are a function of all of the following EXCEPT:

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

What is deregulation? What are the steps involved in the deregulation of a command economy?

Many states in Asia,Latin America,and Western Europe have shifted away from a mixed economy to a market-based economy.Which of the following measures is most likely to be promoted by such states?

New information and communication technologies have enabled the spread of democratic ideals.

Is privatization by itself enough to guarantee economic growth? Why? Explain using an example.