AGB 302 Chapter 3 Exam With 100%
Correct Answers 2026
Gross National Income (GNI) - Correct Answer-Regarded as a yardstick for the
economic activity of a country; it measures the total annual income received by
residents of a nation
Purchasing Power Parity (PPP) - Correct Answer-Allows a more direct comparison of
living standards in different countries
Black economy or shadow economy - Correct Answer-Not all figures are reported in
India
Amartya Sen - Correct Answer-argued that development should be assessed less by
material output measures such as GNI per capita and more by the capabilities and
opportunities that people enjoy
Human Development Index (HDI) - Correct Answer-to measure the quality of human life
in different nations
Human Development Index (HDI) - Correct Answer-1) life expectancy at birth
2) educational attainment
3) whether the average incomes, based on PPP estimates, are sufficient to meet the
basic needs of life in a country
Innovation - Correct Answer-defined broadly to include not just new products but also
new processes, new organizations, new management practices, and new strategies
Entrepreneurs - Correct Answer-first commercialize innovative new products and
processes, and entrepreneurial activity provides much of the dynamism in an economy
Market Economy - Correct Answer-Innovation and entrepreneurship require a
Planned Economy - Correct Answer-In a ____ the state owns all means of production
Property Rights - Correct Answer-Innovation and entrepreneurship require strong
Deregulation - Correct Answer-Involves removing legal restrictions to the free play of
markets, the establishment of private enterprises, and the manner in which private
enterprises operate
First Mover Advantages - Correct Answer-Advantages that accrue to early entrants into
a market
Correct Answers 2026
Gross National Income (GNI) - Correct Answer-Regarded as a yardstick for the
economic activity of a country; it measures the total annual income received by
residents of a nation
Purchasing Power Parity (PPP) - Correct Answer-Allows a more direct comparison of
living standards in different countries
Black economy or shadow economy - Correct Answer-Not all figures are reported in
India
Amartya Sen - Correct Answer-argued that development should be assessed less by
material output measures such as GNI per capita and more by the capabilities and
opportunities that people enjoy
Human Development Index (HDI) - Correct Answer-to measure the quality of human life
in different nations
Human Development Index (HDI) - Correct Answer-1) life expectancy at birth
2) educational attainment
3) whether the average incomes, based on PPP estimates, are sufficient to meet the
basic needs of life in a country
Innovation - Correct Answer-defined broadly to include not just new products but also
new processes, new organizations, new management practices, and new strategies
Entrepreneurs - Correct Answer-first commercialize innovative new products and
processes, and entrepreneurial activity provides much of the dynamism in an economy
Market Economy - Correct Answer-Innovation and entrepreneurship require a
Planned Economy - Correct Answer-In a ____ the state owns all means of production
Property Rights - Correct Answer-Innovation and entrepreneurship require strong
Deregulation - Correct Answer-Involves removing legal restrictions to the free play of
markets, the establishment of private enterprises, and the manner in which private
enterprises operate
First Mover Advantages - Correct Answer-Advantages that accrue to early entrants into
a market
