INB 300 Exam 2 Questions and Answers Latest Update 2025-2026
Which of the following terms refers to the broadest measure of economic development of a
country?
A.
human development index (HDI)
B.
purchasing power parity (PPP)
C.
gross domestic product (GDP)
D.
gross national product (GNP) - Answers D. Gross National Product
The measure of the value of production that occurs within a country's borders without regard to
whether the production is done by domestic or foreign factors of production is its ________.
A.
net national product (NNP)
B.
gross national product (GNP)
C.
gross domestic product (GDP)
D.
gross national income (GNI) - Answers .
C. gross domestic product (GDP)
The relative ability of two countries' currencies to buy the same basket of goods in those two
countries is called ________.
A.
gross national product
B.
,purchasing power
C.
purchasing power parity
D.
gross domestic product - Answers C.
purchasing power parity
________ is the value of goods and services that can be purchased with one unit of a country's
currency.
A.
Gross domestic product
B.
Gross national product
C.
Potential output
D.
Purchasing power - Answers D.
Purchasing power
Which of the following terms is used to refer to the exchange of goods and services for other
goods and services instead of money?
A.
barter
B.
fiat money
C.
guanxi
D.
,letter of credit - Answers A.
barter
The GDP per capita of a country is lower than that of France. If the GDP per capita of the country
is adjusted for PPP, the country's revised GDP is higher than that of France. Which of the
following is most likely true about the country?
A.
The cost of living in the country is lower than that of France.
B.
The cost of living in the country is approximately equal to that of France.
C.
The cost of living in the country is higher than that of France.
D.
The cost of living in the country has increased over the past decade. - Answers A.
The cost of living in the country is lower than that of France.
The GDP per capita of a country is higher than that of Thailand. If the GDP per capita of the
country is adjusted for PPP, the country's revised GDP is lower than that of Thailand. Which of
the following is most likely true about the country?
A.
There are fewer goods available for purchase in the country than in Thailand.
B.
It costs less to buy everyday goods in the country than in Thailand.
C.
The cost to buy everyday goods in the country is approximately the same as in Thailand.
D.
It costs more to buy everyday goods in the country than in Thailand. - Answers D.
It costs more to buy everyday goods in the country than in Thailand.
Which of the following measures the extent to which a government equitably provides its people
, with a long and healthy life, an education, and a decent standard of living?
A.
category development index
B.
gross national product index
C.
human development index
D.
purchasing power index - Answers C.
human development index
Which of the following statements is true of national production?
A.
Volunteer work and unpaid household work are considered in GDP and GNP.
B.
Per capita numbers provide a detailed picture of development of the entire country.
C.
Marketers use GDP or GNP figures to determine whether a country's population is wealthy
enough to purchase its products.
D.
Gross product figures accurately indicate whether a nation's economy is growing or shrinking. -
Answers C.
Marketers use GDP or GNP figures to determine whether a country's population is wealthy
enough to purchase its products.
Nations having the poorest infrastructures and lowest personal incomes are called ________.
A.
developed countries
B.
Which of the following terms refers to the broadest measure of economic development of a
country?
A.
human development index (HDI)
B.
purchasing power parity (PPP)
C.
gross domestic product (GDP)
D.
gross national product (GNP) - Answers D. Gross National Product
The measure of the value of production that occurs within a country's borders without regard to
whether the production is done by domestic or foreign factors of production is its ________.
A.
net national product (NNP)
B.
gross national product (GNP)
C.
gross domestic product (GDP)
D.
gross national income (GNI) - Answers .
C. gross domestic product (GDP)
The relative ability of two countries' currencies to buy the same basket of goods in those two
countries is called ________.
A.
gross national product
B.
,purchasing power
C.
purchasing power parity
D.
gross domestic product - Answers C.
purchasing power parity
________ is the value of goods and services that can be purchased with one unit of a country's
currency.
A.
Gross domestic product
B.
Gross national product
C.
Potential output
D.
Purchasing power - Answers D.
Purchasing power
Which of the following terms is used to refer to the exchange of goods and services for other
goods and services instead of money?
A.
barter
B.
fiat money
C.
guanxi
D.
,letter of credit - Answers A.
barter
The GDP per capita of a country is lower than that of France. If the GDP per capita of the country
is adjusted for PPP, the country's revised GDP is higher than that of France. Which of the
following is most likely true about the country?
A.
The cost of living in the country is lower than that of France.
B.
The cost of living in the country is approximately equal to that of France.
C.
The cost of living in the country is higher than that of France.
D.
The cost of living in the country has increased over the past decade. - Answers A.
The cost of living in the country is lower than that of France.
The GDP per capita of a country is higher than that of Thailand. If the GDP per capita of the
country is adjusted for PPP, the country's revised GDP is lower than that of Thailand. Which of
the following is most likely true about the country?
A.
There are fewer goods available for purchase in the country than in Thailand.
B.
It costs less to buy everyday goods in the country than in Thailand.
C.
The cost to buy everyday goods in the country is approximately the same as in Thailand.
D.
It costs more to buy everyday goods in the country than in Thailand. - Answers D.
It costs more to buy everyday goods in the country than in Thailand.
Which of the following measures the extent to which a government equitably provides its people
, with a long and healthy life, an education, and a decent standard of living?
A.
category development index
B.
gross national product index
C.
human development index
D.
purchasing power index - Answers C.
human development index
Which of the following statements is true of national production?
A.
Volunteer work and unpaid household work are considered in GDP and GNP.
B.
Per capita numbers provide a detailed picture of development of the entire country.
C.
Marketers use GDP or GNP figures to determine whether a country's population is wealthy
enough to purchase its products.
D.
Gross product figures accurately indicate whether a nation's economy is growing or shrinking. -
Answers C.
Marketers use GDP or GNP figures to determine whether a country's population is wealthy
enough to purchase its products.
Nations having the poorest infrastructures and lowest personal incomes are called ________.
A.
developed countries
B.
