Htm 2314 | Chapter 3 Questions With Correct Verified Answers | 100% Pass (A+ Certified)

HTM 2314 | CHAPTER 3 QUESTIONS WITH CORRECT VERIFIED ANSWERS | 100% PASS (A+ CERTIFIED)Common measure of economic development Answer A country's gross national income per head of population The world has a general movement toward Answer - Democratic forms of govt - Market based economic reforms - Adoption of legal systems that better enforce property rights A country's GNI is regarded as Answer 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 Answer They don't consider differences in the cost of living Purchasing power parity adjustment Answer Allows one to adjust GNI per capita to account for differences in the cost of living. Creates a more direct comparison on living standards in different countries Base adjustment for the PPP Answer Cost of living in the US GNI and PPP don't Answer Indicate growth rates PPP for different countries is Answer Adjusted based off the cost of living in the US and whether it is higher or lower Nobel prize winning economist Amartya Sen has argued that Answer Development should be assessed less by material output measures such as GNI per capita and more by the capabilities and opportunities that people enjoy Major impediments to freedom Answer - Poverty, tyranny - Poor economic opportunities - Systematic social deprivation - Neglect of public facilities - Intolerance of repressive states Human Development Index was Answer Created by the UN based on 3 measures Human Development Index is based on three measures Answer - Life expectancy at birth - Educational attainment - Whether average incomes are sufficient to meet the basic needs of life in a country What two factors are the engines of growth? Answer Innovation and entrepreneurship Innovation broadly includes Answer New products, new processes, new organizations, new management practices, and new strategies Entrepreneurs Answer The first to commercialize innovative new products and processes Innovation and entrepreneurial activity help increase economic activity by Answer Creating new products and markets that did not previously exist Innovations in production and business processes lead to Answer An increase in the productivity of labor and capital, which further boosts economic growth rates