IB CHAP 4

Which of the following terms refers to the broadest measure of economic development of a country?

• gross domestic product (GDP)

• purchasing power parity (PPP)

• gross national product (GNP)

• human development index (HDI)

________ is the value of all goods and services produced by the domestic economy over a one-year period.

• Gross domestic product (GDP)

• Human development index (HDI)

• Gross national product (GNP)

• Purchasing power parity (PPP)

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

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

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

• fiat money

• letter of credit

• barter

• guanxi

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.

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

A company is conducting a research on new markets by comparing countries in terms of their human development index (HDI) scores. The company wishes to expand into a market where individuals experience a very high level of total well-being. Which of the following countries would the company most likely choose?

• Russia

• Mexico

• China

• Japan

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.