MBS > Int Bus > Ch3: Emerging Markets

The ________ of a country is its gross national product divided by its population.

• GNP per capita

• GDP per capita

• purchasing power parity

• purchasing power

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

• gross national product

• gross domestic product

• purchasing power

• purchasing power parity

________ is the value of goods and services that can be purchased with one unit of a country's currency.

• Potential output

• Gross national product

• Purchasing power

• Gross domestic product

An investor wants to invest in a country that has a high gross national income (GNI). Which of the following countries would most likely qualify as a prospect?

• Nepal

• India

• Japan

• Vietnam

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?

• The cost of living in the country is higher than that of France.

• The cost of living in the country is lower than that of France.

• The cost of living in the country is approximately equal to that of France.

• The cost of living in the country has increased over the past decade.

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?

• There are fewer goods available for purchase in the country than in Thailand.

• The cost to buy everyday goods in the country is approximately the same as in Thailand.

• It costs less to buy everyday goods in the country than in Thailand.

• 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?

• category development index

• gross national product index

• human development index

• purchasing power index

Which of the following is true about economic development of a nation?

• The purchasing power parity is a poor indicator of a people's total well-being.

• GDP is a larger figure and includes a nation's income generated from exports, imports, and international operations.

• Illegal activities such as gambling and black market transactions are considered in GDP and GNP.

• Using gross product figures to compare production across countries accounts for different cost of living in each country.

Nations having the poorest infrastructures and lowest personal incomes are called ________.

• developed countries

• newly industrialized countries

• emerging markets

• developing countries

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n) ________.

• newly industrialized country (NIC)

• developing country

• emerging market

• developed country