Question 1

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

Accepted Answer

A) True 
 B)False

Question 2

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

Accepted Answer

State Capitalism is an economic system w...

Question 3

Eileen,a manager at an international restaurant chain,wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S.dollars.Which of the following is Eileen most likely trying to determine?

Accepted Answer

A)   purchasing power parity
B)   economic growth rate
C)   gross domestic income
D)   gross national productE) C) and D)
F) None of the above

Question 4

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

Accepted Answer

A)   be added to the GNI of the United States as well as to the GNI and GDP of Mexico
B)   not be added to the GNI of the United States but would be added to the GNI of Mexico
C)   only affect the computation of GDP and have no bearing on GNI
D)   be added to the GNI of the United States but not the GNI of MexicoE) B) and C)
F) C) and D)

Question 5

In most cases,if the misery index of a country is high,then consumers and businesses are less likely to spend and invest.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

Accepted Answer

A)   trade deficit
B)   Gini coefficient
C)   balance of payments
D)   purchasing power parityE) None of the above
F) A) and B)

Question 7

What issues complicate international economic analysis?

Accepted Answer

International economic analysis uses man...

Question 8

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

Accepted Answer

A) True 
 B)False

Question 9

What is inflation? How does inflation affect international business?

Accepted Answer

Inflation means that prices are going up...

Question 10

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

Accepted Answer

A)   market economy
B)   mixed economy
C)   command economy
D)   democratic economyE) C) and D)
F) B) and C)

Question 11

In a market economy,the patterns of resource allocation are most directly influenced by ________.

Accepted Answer

A)   government administrators who monitor the equilibrium of supply and demand
B)   industry coalitions that strive to improve the efficiency of production and service
C)   consumer group alliances that negotiate with firms to improve product quality
D)   consumers who "vote" by their personal decision to buy or not buy productsE) B) and C)
F) A) and D) D

Question 12

Country X has a significant amount of external debt.Which of the following is the most likely cause?

Accepted Answer

A)   The government of Country X borrowed money from local banks.
B)   The government of Country X borrowed money from other governments.
C)   The government of Country X spent more than it collected in revenues.
D)   The government of Country X received short-term credits from selling bonds.E) None of the above
F) A) and B)

Question 13

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

Accepted Answer

A) True 
 B)False

Question 14

Uneven income distribution is largely a problem confined to poorer nations.

Accepted Answer

A) True 
 B)False

Question 15

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

Accepted Answer

A)   Human Development Index
B)   Emerging Economic Stability
C)   Genuine Progress Indicator
D)   Net National ProductE) B) and C)
F) A) and D) A

Question 16

The calculation of GNI per capita takes into account the differences in the cost of living from one country to another.

Accepted Answer

A) True 
 B)False  False

Question 17

Presently,which of the following countries is best characterized as a pure example of a command economy?

Accepted Answer

A)   Russia
B)   North Korea
C)   China
D)   VietnamE) A) and B)
F) B) and C)

Question 18

The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing,incomes,security,and work-life balance.

Accepted Answer

A) True 
 B)False

Question 19

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

Accepted Answer

A)   per capita GNI
B)   GNI growth rate
C)   purchasing power parity
D)   degree of human developmentE) B) and C)
F) A) and B)

Question 20

In the U.S.,the unemployment rate indicates the ________.

Accepted Answer

A)   percentage of the labor force that wants to work full-time but can only find part-time employment
B)   number of people who have stopped looking for work because full-time jobs are unavailable
C)   percentage of unemployed workers seeking paid work relative to the total labor force
D)   number of workers eligible for government services and unemployment benefitsE) A) and C)
F) A) and B)

Exam 4: The Economic Environments Facing Businesses

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

Correct AnswerverifiedShow Answer

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

Correct AnswerverifiedState Capitalism is an economic system w...View AnswerShow Answer

Eileen,a manager at an international restaurant chain,wants to know if it will be most cost effective to buy 1,000 pounds of sugar in Country X or in Country Y using U.S.dollars.Which of the following is Eileen most likely trying to determine?

Correct AnswerverifiedShow Answer

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

Correct AnswerverifiedShow Answer

In most cases,if the misery index of a country is high,then consumers and businesses are less likely to spend and invest.

Correct AnswerverifiedShow Answer

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

Correct AnswerverifiedShow Answer

What issues complicate international economic analysis?

Correct AnswerverifiedInternational economic analysis uses man...View AnswerShow Answer

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private,but the government intervenes in many private economic decisions.

Correct AnswerverifiedShow Answer

What is inflation? How does inflation affect international business?

Correct AnswerverifiedInflation means that prices are going up...View AnswerShow Answer

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government.Which term best describes Country X?

Correct AnswerverifiedShow Answer

In a market economy,the patterns of resource allocation are most directly influenced by ________.

Correct AnswerverifiedD

Country X has a significant amount of external debt.Which of the following is the most likely cause?

Correct AnswerverifiedShow Answer

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

Correct AnswerverifiedShow Answer

Uneven income distribution is largely a problem confined to poorer nations.

Correct AnswerverifiedShow Answer

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

Correct AnswerverifiedA

The calculation of GNI per capita takes into account the differences in the cost of living from one country to another.

Correct AnswerverifiedFalse

Presently,which of the following countries is best characterized as a pure example of a command economy?

Correct AnswerverifiedShow Answer

The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing,incomes,security,and work-life balance.

Correct AnswerverifiedShow Answer

To determine whether the standard of living within a country is rising or falling,economists would most likely use which of the following measures?

Correct AnswerverifiedShow Answer

In the U.S.,the unemployment rate indicates the ________.

Correct AnswerverifiedShow Answer

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State Capitalism is an economic system w...
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International economic analysis uses man...
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Inflation means that prices are going up...
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D

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A

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False

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