D270 Final Garcia Questions With
100% Correct Answers
\Q\.System Complexity - ANSWER-✔economic systems are complex & difficult to model =
speculation. Often more data makes it worse
\Q\.Market Dynamism - ANSWER-✔what is true today ≠ tomorrow, also what is true for West
poorly transition into East
\Q\.Market Interdependence - ANSWER-✔No country is 100% isolated, actions in country 1
influence outcomes in country 2. Moderates supply, demand, and pricing.
\Q\.Developed Economy - ANSWER-✔High Income, Advanced markets, advanced industrial
economies, postindustrial economies
Generally have high income, advanced technological infrastructure and high standards of living
16% of Global population
60% of Gross World Product
\Q\.Developing Economy - ANSWER-✔low income, slight industrialization, incomplete
infrastructure, low standards of living
,85% of global population
40% of Gross World Product
\Q\.Economy in Transition - ANSWER-✔Also called Emerging Economies
exhibit improving productivity, rising income, and growing prosperity, particularly relative to
slower growing developing economies.
Approx. 30 or so in the world
\Q\.Poverty - ANSWER-✔the state of having little or no money, few or no material possessions
and limited access to education, health and community
\Q\.Base of the Pyramid - ANSWER-✔It is the largest, but poorest, socioeconomic group in the
world.
About 4 billion people who earn a few dollars per day and live primarily in developing
economies.
\Q\.Economic freedom - ANSWER-✔Formally: "absolute right of property ownership, fully
realized
freedoms of movement for labor, capital, and goods, and an absolute absence of coercion or
constraint of economic liberty beyond the extent necessary for citizens to protect and maintain
liberty itself".
Informal- holds that one has the right to work, produce, consume, save, and invest in the way
that one prefers.
, \Q\.Economic Freedom Index - ANSWER-✔Measures the absence of government coercion or
constraint on the production, distribution, or consumption of goods and services beyond the
extent necessary for citizens to protect and maintain liberty.
\Q\.state capitalism - ANSWER-✔an economic system whereby political officials shape how
assets are valued and when and where they are used
\Q\.economic system - ANSWER-✔organizes the production, distribution, and consumption of
goods and services
\Q\.Market economy - ANSWER-✔individuals rather than the government make most decisions
goal is to maximize economic freedom
Invisible hand of the Market has power
anchored in capitalism and the idea that private ownership confers inalienable property rights
\Q\.Command Economy - ANSWER-✔the state owns and controls the factors of production
Visible hand of the state has power
based on communism
can outperform free markets for short periods
100% Correct Answers
\Q\.System Complexity - ANSWER-✔economic systems are complex & difficult to model =
speculation. Often more data makes it worse
\Q\.Market Dynamism - ANSWER-✔what is true today ≠ tomorrow, also what is true for West
poorly transition into East
\Q\.Market Interdependence - ANSWER-✔No country is 100% isolated, actions in country 1
influence outcomes in country 2. Moderates supply, demand, and pricing.
\Q\.Developed Economy - ANSWER-✔High Income, Advanced markets, advanced industrial
economies, postindustrial economies
Generally have high income, advanced technological infrastructure and high standards of living
16% of Global population
60% of Gross World Product
\Q\.Developing Economy - ANSWER-✔low income, slight industrialization, incomplete
infrastructure, low standards of living
,85% of global population
40% of Gross World Product
\Q\.Economy in Transition - ANSWER-✔Also called Emerging Economies
exhibit improving productivity, rising income, and growing prosperity, particularly relative to
slower growing developing economies.
Approx. 30 or so in the world
\Q\.Poverty - ANSWER-✔the state of having little or no money, few or no material possessions
and limited access to education, health and community
\Q\.Base of the Pyramid - ANSWER-✔It is the largest, but poorest, socioeconomic group in the
world.
About 4 billion people who earn a few dollars per day and live primarily in developing
economies.
\Q\.Economic freedom - ANSWER-✔Formally: "absolute right of property ownership, fully
realized
freedoms of movement for labor, capital, and goods, and an absolute absence of coercion or
constraint of economic liberty beyond the extent necessary for citizens to protect and maintain
liberty itself".
Informal- holds that one has the right to work, produce, consume, save, and invest in the way
that one prefers.
, \Q\.Economic Freedom Index - ANSWER-✔Measures the absence of government coercion or
constraint on the production, distribution, or consumption of goods and services beyond the
extent necessary for citizens to protect and maintain liberty.
\Q\.state capitalism - ANSWER-✔an economic system whereby political officials shape how
assets are valued and when and where they are used
\Q\.economic system - ANSWER-✔organizes the production, distribution, and consumption of
goods and services
\Q\.Market economy - ANSWER-✔individuals rather than the government make most decisions
goal is to maximize economic freedom
Invisible hand of the Market has power
anchored in capitalism and the idea that private ownership confers inalienable property rights
\Q\.Command Economy - ANSWER-✔the state owns and controls the factors of production
Visible hand of the state has power
based on communism
can outperform free markets for short periods
