HTM 2314 EXAM 1 QUESTIONS AND
ANSWERS ALL CORRECT
Those who attempt to achieve the same ideologies as that of the communists without
violent revolution and totalitarian dictatorship are called - Answer-social democrats
Which of the following is most likely to be advocated by individualism - Answer-free
market ideologies should be followed for achieveing better standards of living
The government of Semput plans the goods and services that Semput produces, the
quantity of goods produced, and the prices at which goods are sold. Semput is a
_________ economy - Answer-command
If a country's economy is to sustain long-run economic growth, the business
environment must be conducive to the consistent production of product and process
innovations and to entrepreneurial activity - Answer-True
Strong legal protection of property rights is a requirement for a business environment to
be conducive to innovation, entrpreneurial activity, and hence economic growth -
Answer-True
According to Freedom House, all democracies are free countries in terms of political
and civil liberties - Answer-False
The shift toward deregulation has been easier for former command economic than for
mixed economies - Answer-False
A country's economic system and property rights regime don't influence the
attractiveness of the country as a market or investment site - Answer-False
By identifying and investing early in a potential future economic star, international firms
build brand loyalty and gain experience in that country's business practices - Answer-
True
Which of the following is based on 3 measures: life expectancy at birth, educational
attainment, and average incomes based on PPP estimates - Answer-Human
Development Index
, The country of Baloonistan is classified as having low human development (the quality
of life is poor). This means its HDI is - Answer-a score of less than 0.5 on the HDI scale
Which of the following best exemplifies an entrepreneur - Answer-Javier purchased an
invention made by his friend to start a company that processes plastic bags into
synthetic cloth
In the country of Sernia, the state owns all means of production. Sernia is a - Answer-
planned economy
Due to strong legal protection of property rights, businesses and individuals will -
Answer-invest more in innovations
Economic advances in many countries have led to the - Answer-Emergence of
increasingly prosperous middle and working classes
As a result of globalization, we have been moving toward a world in which national
economies are relatively self-contained entities - Answer-False
Today, outsourcing efforts are confined to manufacturing activites - Answer-False
The World Trade Organization, the International Monetary Fund and its sister institution
the World Bank, and the United Nations were all created by voluntary agreement
between individual nation-states - Answer-True
Foreign Direct Investment (FDI) occurs when a firm invests resources in business
activities outside its home country - Answer-True
After WWII, the advanced industrial nations of the West committed themselves to
increasing barriers to the free flow of goods, services, and capital between nations -
Answer-False
The Uruguay Round extended GATT to cover services as well as manufactured goods -
Answer-True
The lowering of trade and investment barriers allows firms to base production at the
optimal location for that activity - Answer-True
The globalization of markets and production and the resulting growth of world trade,
foreign direct investment, and imports all imply that firms are finding it easier to protect
themselves from attack by foreign competitiors - Answer-False
Moore's Law predicts, that every 18 months, the power of microprocessor technology
decreases, while its cost of production increases - Answer-False
ANSWERS ALL CORRECT
Those who attempt to achieve the same ideologies as that of the communists without
violent revolution and totalitarian dictatorship are called - Answer-social democrats
Which of the following is most likely to be advocated by individualism - Answer-free
market ideologies should be followed for achieveing better standards of living
The government of Semput plans the goods and services that Semput produces, the
quantity of goods produced, and the prices at which goods are sold. Semput is a
_________ economy - Answer-command
If a country's economy is to sustain long-run economic growth, the business
environment must be conducive to the consistent production of product and process
innovations and to entrepreneurial activity - Answer-True
Strong legal protection of property rights is a requirement for a business environment to
be conducive to innovation, entrpreneurial activity, and hence economic growth -
Answer-True
According to Freedom House, all democracies are free countries in terms of political
and civil liberties - Answer-False
The shift toward deregulation has been easier for former command economic than for
mixed economies - Answer-False
A country's economic system and property rights regime don't influence the
attractiveness of the country as a market or investment site - Answer-False
By identifying and investing early in a potential future economic star, international firms
build brand loyalty and gain experience in that country's business practices - Answer-
True
Which of the following is based on 3 measures: life expectancy at birth, educational
attainment, and average incomes based on PPP estimates - Answer-Human
Development Index
, The country of Baloonistan is classified as having low human development (the quality
of life is poor). This means its HDI is - Answer-a score of less than 0.5 on the HDI scale
Which of the following best exemplifies an entrepreneur - Answer-Javier purchased an
invention made by his friend to start a company that processes plastic bags into
synthetic cloth
In the country of Sernia, the state owns all means of production. Sernia is a - Answer-
planned economy
Due to strong legal protection of property rights, businesses and individuals will -
Answer-invest more in innovations
Economic advances in many countries have led to the - Answer-Emergence of
increasingly prosperous middle and working classes
As a result of globalization, we have been moving toward a world in which national
economies are relatively self-contained entities - Answer-False
Today, outsourcing efforts are confined to manufacturing activites - Answer-False
The World Trade Organization, the International Monetary Fund and its sister institution
the World Bank, and the United Nations were all created by voluntary agreement
between individual nation-states - Answer-True
Foreign Direct Investment (FDI) occurs when a firm invests resources in business
activities outside its home country - Answer-True
After WWII, the advanced industrial nations of the West committed themselves to
increasing barriers to the free flow of goods, services, and capital between nations -
Answer-False
The Uruguay Round extended GATT to cover services as well as manufactured goods -
Answer-True
The lowering of trade and investment barriers allows firms to base production at the
optimal location for that activity - Answer-True
The globalization of markets and production and the resulting growth of world trade,
foreign direct investment, and imports all imply that firms are finding it easier to protect
themselves from attack by foreign competitiors - Answer-False
Moore's Law predicts, that every 18 months, the power of microprocessor technology
decreases, while its cost of production increases - Answer-False
