In Sen's view, development is an economic process that should be assessed primarily by material output measures such as GNI per capita.

GDP is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

If a country's economy is to sustain long-term economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

The state of Illinois was having budget difficulties, so it hired several private management consultancy firms to manage some state-owned enterprises. This is an example of privatization.

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation and entrepreneurial activity in developing nations.

Most property in poor countries is owned legally by investors.

Totalitarian states promote human freedom and human development, which facilitates economic progress.

Since the late 1980s, there has been a strong move away from a more free market economic model and toward more centrally planned and mixed economies.

Many totalitarian regimes were able to deliver economic progress to the vast bulk of their populations, which curbed the spread of democracy during the late 1980s.

New information and communication technologies have enabled the spread of democratic ideals.

Transformation from centrally planned command economies to market-based economies can be attributed to the fact that command and mixed economies failed to deliver the sustained economic performance achieved by countries adopting market-based systems.

Hong Kong has economic freedom, so it follows that it also has political freedom.

In a command economy, the prices are determined by the free interplay of demand and supply.

In mixed economies, in certain sectors the state sets prices, owns businesses, limits private enterprise, restricts investment by foreigners, and restricts international trade.

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms continue to receive subsidies from the state and if they are protected from foreign competition.

For privatization to work, it must also be accompanied by a more general deregulation and opening of the economy.

To improve airport security following a major terrorist attack, the government of a country takes over the airport security industries This is an example of privatization.

A country with a well-functioning market economy does not need laws protecting private property rights and providing mechanisms for contract enforcement.

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

A market with a large number of consumers with low living standards will have a relatively large market when measured in economic terms.

The long-run monetary benefits of doing business in a country are a function of the size of the market, the present wealth of consumers in that market, and the likely future wealth of consumers.

A country's economic system and property rights regime are reasonably good predictors of economic prospects.

Economic risks are independent of political risk.

_______ per person figures can be misleading because they don't consider differences in the cost of living.

GNI per capita can be adjusted by_____to account for differences in the cost living.

The_____ adjustment allows for a more direct comparison of living standards in different countries.

GNI and PPP data are useful because they provide a of economic development.

In a ____ , the state owns all means of production.

The economic freedom associated with a_____ and entrepreneurship than either a planned or a mixed economy.

Which of the following is a legal means by which the state can expropriate the profits from innovation?

Some_____ have fostered a market economy and strong property rights protection and have experienced rapid economic growth.

Several of the fastest-growing Asian economies adopted more_____govements during the past three decades, including South Korea and Taiwan.

The general assertion is that nations investing more in_____ growth rates.

To account for differences in the cost of living, one can adjust GNI per capita by_______ ,which allows for a more direct comparison of living standards in different countries.

Which of the following are more conducive to economic growth?

In a_______ , any individual who has an innovative idea is free to try to make money out of that idea by starting a business (by engaging in entrepreneurial activity).

GNI per person figures can be misleading because

Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living?

In some countries, the official GNI per capita measured at PPP data does not reflect the actual total annual income because

Which of the following was developed by the United Nations to measure the quality of life in different nations?

Many countries in Africa score below 0.5 on the Human Development Index. This means that these countries have

Which of the following is one of the measures that HDI is based on?

________, a Nobel Prize-winning economist, has argued that development is not just an economic process, but it is a political one as well.

According to Amartya Sen, development should be

Which of the following statements pertaining to innovation and entrepreneurship is true?

A market economy encourages innovation because

Stagnation can occur in planned economies because

_______is required for a business environment to be conducive to innovation and entrepreneurial activity.

The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

A free market economy in which property rights are protected leads to subsequent economic growth that often leads to the establishment of

The political economy of many of the world's nation-states has changed radically since the late 1980s. Which of the following is a trend that has been evident?

Political scientist_____ predicts that there will be a world that is split into different civilizations, each of which has its own value systems and ideology.

According to what political scientist's thesis is global terrorism a product of the tension between civilizations and the clash of value systems and ideology?

One of the reasons for the spread of democracy is the emergence of_____who have pushed for democratic reforms.

Since the late 1980s, there has been a spread of democracy. This is because

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ; this contributed to a wave of democratic revolutions during the late 1980s and early 1990s

Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by the

According to political scientist Samuel Huntington, the rise of Islamic fundamentalism is a response to the

Which of the following statements is true about Samuel Huntington?

Paralleling the spread of democracy since the 1980s has been the transformation from

Since the 1980s, there has been a transformation from______ economies to____economies.

Many states in Asia, Latin America, and Western Europe have shifted away from a mixed economy to a market-based economy. Which of the following measures is most likely to be promoted by such states?

Which of the following is a step in the shift toward a market-based economic system?

______ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate.

______ is seen as a way to stimulate gains in economic efficiency by giving owners a powerful incentive-the reward of greater profits-to search for increases in productivity, to enter new markets, and to exit losing ones.

______ involves removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate.

Which of the following is a step involved in the deregulation of a command economy?

Without a strong legal system in a market economy

Which of the following is an example of deregulation?

Which of the following is a characteristic of a command economy?

The finance minister of a country considers several large, state-owned iron manufacturing units to be inefficient and a source of corruption. To generate resources for public expenditure and promote economic growth, the government decides to auction an entire iron manufacturing plant to sell it to a strategic investor. This process exemplifies

Studies of privatization in central Europe have shown that the process often fails to deliver predicted benefits if the newly privatized firms

The sale of state assets through an auction is most likely to lead to

For privatization to work, it must also be accompanied by

Which of the following factors is likely to make a country a more attractive location for international business?

The benefits of doing business in a country are a function of which of the following?

Sony was a pioneer in the portable music market segment. The Sony Walkman was an innovative product that created a new category altogether and made Sony a technological leader. This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time. In this example, Sony had the

Google launched Google Plus to gain a foothold in the social media market. However, given that there are numerous social networking platforms and Facebook is already a leader in social media, Google Plus found it challenging to generate brand loyalty and establish itself in the market. This was because of

The costs of doing business in a country tend to be greater if

_____ are the advantages gained by early entrants into a market.

Countries with_____ economies in which property rights are protected tend to achieve greater economic growth rates than other economies where property rights are poorly protected.

It may be more costly to do business in relatively primitive or undeveloped economies because of

One visible indicator of_______tends to be a country's inflation rate.

The overall attractiveness of a country as a potential market or investment site for an international business depends on

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n)

A change in political regime in a country can result in laws that businesses.

By identifying and investing early in a potential future economic star, international firms can_____ and gain experience in that country's business practices.

Economic growth appears to be a function of a country's capacity for growth and its

______ are the handicaps that late entrants to a market might suffer.

Which of the following is a first-mover advantage?