multiple choices Questions / true or false

21. In the context of political economy, the past three decades have seen a general move toward:

A. autocratic forms of government.

B. command-based economic reforms.

C. adoption of legal systems that better enforce property rights.

D. an environments which is unfavorable for international business.

E. military parties monopolizing political power worldwide.

22. Which of the following statements is true of purchasing power parity (PPP)?

A. Purchasing power parity figures can be misleading because they dont consider differences in the cost of living.

B. The PPP for different countries is adjusted (up or down) depending upon whether the cost of living is lower or higher than in Great Britain.

C. The PPP data gives a static picture of economic development.

D. China's GNI PPP per capita is higher than that of the United States.

E. Purchasing power parity (PPP) adjustment, does not allow for a direct comparison of living standards in different countries.

23. As a result of _____, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy.

A. a large population

B. active bartering

C. deregulation

D. nationalization

E. closed totalitarianism

24. _____ is broadly defined as the development of new products, processes, organizations, management practices, and strategies.

A. Privatization

B. Economic deregulation

C. Boundary spanning

D. Innovation

E. Benchmarking

25. Which of the following creates an unfavorable environment for innovations and entrepreneurship?

A. Market economy

B. Economic freedom

C. State monopoly in production

D. Privatization

E. Strong legal protection of property rights

True/False questions 26. After World War II, the advanced nations of the West committed themselves to removing barriers to the free flow of goods, services, and capital between nations. 27. The economies of the world's nation-states are becoming more intertwined. As trade expands, nations are becoming increasingly dependent on each other for important goods and services. 28. The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets under attack from foreign competitors. 29. Without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be increased substantially by private and public entities. 30. Although command economies remain and totalitarian dictatorships can still be found around the world, the tide has been running in favor of free markets and democracy. 31. Dumping is viewed as a method by which firms unload excess production in their domestic markets. 32. The ultimate objective of antidumping policies is to protect domestic producers from fair foreign competition. 33. The Smoot-Hawley Act aimed to liberalize trade by eliminating tariffs, subsidies, and import quotas