Quiz 4: World Economies

If a country has a large black, or underground, market for transactions, it will not be included in the official GDP.

The total size of the economy is a better indicator of the strength of the local economy and the market opportunity for a new consumer product than the income per person.

The GDP per person adjusted for purchasing power helps professionals to evaluate what consumers in the local market can actually afford.

The nominal per capita GDP can be misleading because actual costs in each country differ.

Companies selling expensive goods and services are more interested in economies with low per capita GDP.

The differences between the OER- and PPP-denominated GDP values for most of the wealthy industrialized countries are generally much smaller than those for the developing nations.

In a country, if the per capita GDP adjusted for purchasing power is lower than the nominal per capita GDP, it implies that local consumers can afford more with their incomes.

The greater the gender disparity in basic capabilities, the lower a country's GDI compared with its HDI.

Developed countries tend to have high human development index (HDI) rankings.

The German law guarantees free unregulated private enterprise.

The World Trade Organization (WTO) has given clear definitions for "developed" and "developing" countries.

Developing countries enjoy benefits in some WTO Agreements such as longer transition periods before they are required to fully implement the agreement.

The economies of developing countries usually rely heavily on one or more key industries, often related to commodities like oil, minerals mining, or agriculture.

One of the peculiar features of the UAE is that expatriates outnumber the local citizens, or nationals.

In some industries in the UAE, it is mandatory for companies outside the free-trade zone to have an Emirati sponsor or partner.

In the WTO, it is the preference giving country, which decides the list of developing countries that will benefit from schemes such as the Generalized System of Preferences (GSP).

Africa serves as an attractive destination for investors because of its low trade tariffs and the untapped spending power of the African population.

A single language and a homogeneous cultural identity in Africa make it easier for advertisement companies to reach a wider audience with their ads.

Companies from emerging markets should play an important role in the process of transition to the global emerging market, as they have a great deal of experience operating in conditions of non-developed economies.

The early 1980s saw the gradual transition of the Chinese economy from a centrally planned economy toward a market-driven economy.

In 1979 China instituted economic reforms, which benefitted only the urban centers and relegated the local provinces to further poverty and neglect.

Chinese economic statistics are often regarded with a degree of skepticism, as it is unclear as to where the numbers have originated from or how they have been derived.

India has become the global hub for outsourcing in the computer-programming industry with its skilled, relatively cheap, and English-speaking professional workforce.

_____ refers to the value of all the goods and services produced by a country in a single year. A) Gross domestic product per person B) Human development index C) Purchasing power parity D) Gross domestic product E) Per capita gross domestic product

Per capita gross domestic product refers to: A) the value of the GDP divided by the population of the country. B) the value of all the goods and services produced by a country in a single year. C) the value of the GDP adjusted for purchasing power. D) an economic theory that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency. E) the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

Gender-related development index (GDI) refers to the index that: A) measures achievement in the same basic capabilities as the HDI does but takes note of inequality in achievement between women and men. B) uses indicators of the most basic dimensions of deprivation, i.e. a short life, lack of basic education, and lack of access to public and private resources. C) evaluates the progress of women in political and economic forums. D) measures the economic value of the total number of hours spent by women in doing household chores. E) measures the number of women per thousand men living in a country at a particular point of time.

A nation's GDP at purchasing power parity (PPP) exchange rates refers to: A) the value of the GDP divided by the population of the country. B) the value of all the goods and services produced by a country in a single year. C) the value of the GDP adjusted for purchasing power. D) a country's average achievements in health, knowledge, and standard of living. E) the sum value of all goods and services produced in the country valued at prices prevailing in the United States.

_____ examines the extent to which women and men are able to actively participate in economic and political life and take part in decision-making. A) Gross domestic product (GDP) B) Gender-related development index (GDI) C) Gender empowerment measure (GEM) D) Human poverty index (HPI) E) Purchasing power parity(PPP)

Human development index refers to: A) the value of the GDP divided by the population of the country. B) the value of all the goods and services produced by a country in a single year. C) the value of the GDP adjusted for purchasing power. D) the index that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency. E) the measurement of a country's average achievements in health, knowledge, and a decent standard of living.

_____ refers to a market in which prices rise for a prolonged period of time. A) Currency market B) Bull market C) Labor market D) Commodity market E) Bear market

Gross domestic product per person refers to: A) the total GDP divided by the population of the country. B) the nominal per capita GDP of a country in a particular year. C) the value of the GDP adjusted for purchasing power. D) an economic theory that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency. E) the measurement of a country's average achievements in health, knowledge, and a decent standard of living.

Gender empowerment measure (GEM) refers to the index that: A) takes note of inequality in achievement between women and men. B) uses indicators of the most basic dimensions of deprivation, i.e. a short life, lack of basic education, and lack of access to public and private resources. C) evaluates the progress in advancing women's standing in political and economic forums. D) measures the economic value of the total number of man hours spent by women in doing household chores. E) makes an estimate of the number of women per thousand men living in a country at a particular point of time.

_____ refers to a market in which prices steadily drop, in a downward cycle. A) Currency market B) Bull market C) Labor market D) Commodity market E) Bear market

Purchasing power parity refers to: A) the value of the GDP divided by the population of the country. B) the value of all the goods and services produced by a country in a single year. C) the value of the GDP adjusted for purchasing power. D) an economic theory that adjusts the exchange rate between countries to ensure that a good is bought for the same price in the same currency. E) the measurement of a country's average achievements in health, knowledge, and a decent standard of living.

_____ refers to giant corporate holding companies in Japan, which were dismantled after World War II. A) Sokaiya B) Nemawashi C) Keiretsu D) Chaebol E) Zaibatsu

One of the primary purposes of the EU was: A) to establish a common financial denomination for the whole world. B) to bar non-European countries from trading with the European countries. C) to transform Europe and Asia into a single political and administrative unit. D) to create a single market for business and workers accompanied by a single currency, the euro. E) to use it as a platform to further Europe's military and political goals.

The United States imports about 30 percent of its oil, despite its own massive reserves because: A) Americans consume more than what they can produce. B) Americans reroute their imported oil to other nations at a higher cost. C) the quality of oil produced in their reserves is substandard. D) the quantity of oil produced in their reserves is negligible. E) it is cheaper to export import oil than to extract it from the oil reserves.

Human poverty index (HPI) refers to the index that: A) makes an estimate of the number of rural poor as compared to the urban poor. B) uses indicators of the most basic dimensions of deprivation, i.e. a short life, lack of basic education, and lack of access to public and private resources. C) evaluates the progress in advancing women's standing in political and economic forums. D) measures the economic value of the total number of man hours spent by women in doing household chores. E) makes an estimate of the number of women per thousand men living in a country at a particular point of time.

_____ refers to a group of companies in Japan with interlocking financial and nonfinancial relationships. A) Sokaiya B) Nemawashi C) Keiretsu D) Chaebol E) Zaibatsu

The _____ refers to the Basic Law of Germany, which guarantees private enterprise and private property. A) Gesetz B) Grundgesetz C) Marktwirtschaft D) Steuer E) Schutzmann

The Soziale Marktwirtschaft refers to Germany's: A) constitutional law. B) EU membership status. C) trade partnerships. D) economic system. E) right to free enterprise.

_____ drive(s) the German economy, representing 72 percent (in 2014) of the total GDP. A) Manufacturing B) Services C) Agriculture D) Mining E) Retail trade

The "Iron Triangle" in Japan refers to the tight relationship among: A) Japanese politicians, bureaucrats, and big business leaders. B) Japanese farmers, bureaucrats and big business leaders. C) Japanese politicians, bureaucrats, and the legal system. D) Japanese politicians, legal system, and farmers. E) Japanese legal system, bureaucrats, and big business leaders.

The _____ is responsible for establishing, coordinating, and regulating specific industry policies and targets in Japan. A) Ministry of Land, Infrastructure, Transport, and Tourism B) Ministry of Health, Labor, and Welfare C) Ministry of Finance D) Ministry of Economy, Trade and Industry.Ministry of Internal Affairs and Communications

Which of the following is true for Japan? A) Japan has the largest agricultural base in the world. B) Japanese business is difficult to penetrate due to its keiretsu nature. C) Japan is the world's largest single country economy. D) Japan has abundant mineral and energy resources. E) Japan relies heavily on imports of rice, which is its main staple.

"First World" was a term coined after World War II which referred to: A) the unknown nations (cultural entities) of indigenous peoples living within or across national state boundaries. B) the states that aligned with neither the democratic-industrial countries nor with the communist-socialist states. C) the Eastern bloc of the communist-socialist states. D) the bloc of democratic-industrial countries within the American influence sphere. E) the bloc of nations that had been colonial powers and wielded significant economic and political power.

Nigeria pulled out of the IMF program in 2002 because: A) the economic and political elite of Nigeria wanted an independent economy unregulated by the whims and fancies of the IMF. B) the developed countries of the world pressed for its ouster on charges of massive violation of human rights by the Nigerian military dictatorship. C) it failed to meet the economic reform requirements, specifically failing to meet spending and exchange rate targets. D) it refused to accord the MFN status to the rest of the members of the IMF as it did to South Africa which was a violation of IMF statutes. E) it insisted on additional loans from the IMF even though it was defaulting on the repayment of the earlier loans.

Which of the following countries has the largest agricultural base in the world? A) China B) Brazil C) India D) United States of America E) Japan

_____ refers to the benefit that a company gains by entering into a market first or introducing a new product or service before its competitors. A) Search retargeting B) Lead indicators C) First-mover advantage D) Holding Power E) Global start-up benefit

"Third World" was a term coined after World War II which referred to: A) the unknown nations (cultural entities) of indigenous peoples living within or across national state boundaries. B) the states aligned with neither the democratic-industrial countries nor with the communist-socialist states. C) the Eastern bloc of the communist-socialist states. D) the bloc of democratic-industrial countries within the American influence sphere. E) the bloc of nations that had been colonial powers and wielded a great deal of economic and political power.

Glasnost refers to the: A) Soviet Union's policy of openness and candor. B) Soviet Union's restructuring of the economy and political system. C) Soviet Union's efforts to preserve the positive elements of socialism. D) Soviet Union's policy of establishing trade blocs with Communist countries. E) Soviet Union's policy of nationalizing the private banks.

"Fourth World" was a term coined after World War II which referred to: A) the unknown nations (cultural entities) of indigenous peoples living within or across national state boundaries. B) the states that aligned with neither the democratic-industrial countries nor with the communist-socialist states. C) the Eastern bloc of the communist-socialist states. D) the bloc of democratic-industrial countries within the American influence sphere. E) the bloc of nations that had been colonial powers and wielded a great deal of economic and political power.

Perestroika refers to the: A) Soviet policy of disallowing trade in consumer durables with multinational companies based in the United States. B) establishment of trade blocs in Europe and according the MFN status to the members of the Soviet Union. C) takeover of the Soviet economic and financial system by the European Union. D) recommendations of the American financial experts in the Soviet Union's political as well as economic sphere. E) restructuring of the economy and political system of the Soviet Union that preserved some of the more positive elements of socialism.

_____ refers to people who have acquired substantial wealth in one generation (i.e., new money). A) De nouveaux fond B) Nouvelle robe C) Nouveau riche D) Nouvelle maison E) Nouvelle économie

"Second World" was a term coined after World War II which referred to: A) the unknown nations (cultural entities) of indigenous peoples living within or across national state boundaries. B) the states that aligned with neither the democratic-industrial countries nor with the communist-socialist states. C) the Eastern bloc of the communist-socialist states. D) the bloc of democratic-industrial countries within the American influence sphere. E) the bloc of nations that had been colonial powers and wielded a great deal of economic and political power.

Which of the following is true of the Apartheid system? A) It refers to an official policy of economic isolation of the countries ruled by dictators by the United Nations. B) It refers to an official policy of racial segregation that was practiced in South Africa against anyone who was not white. C) It refers to an official policy of ostracization of the socially disadvantaged groups in the United States of America. D) It refers to an official policy of economic isolation of the countries averse to economic reforms by the World Trade Organization. E) It refers to an official policy of economic exploitation of the developing countries by the International Monetary Fund.

_____ refers to the fund bank started by Antoine van Agtmael wherein funds were to be used to invest in the shares of the developing countries. A) Strategic Climate Fund B) Third-World Equity Fund C) Combined Services Third World Fund D) International Monetary Fund E) World Bank

CIVETS refers to: A) the group of newly emerging economies which proposes to set up a rival economic organization as an answer to the WTO. B) the group of newly emerging economies which has replaced the United States of America as the largest economy in the world. C) the group of newly emerging economies which will replace the BRIC countries of the last decade. D) the group of newly emerging economies which is working towards establishing Asian supremacy in organizations such as the IMF. E) the group of newly emerging economies whose economic growth is driven largely by oil and zero tariff tax havens.

An economic model where the market forces work in conjunction with state ownership and intervention is commonly referred to as: A) "a socialist market economy with Venezuelan characteristics." B) "a socialist market economy with Russian characteristics." C) "a socialist market economy with Cuban characteristics." D) "a socialist market economy with Indian characteristics." E) "a socialist market economy with Chinese characteristics."

The "License Raj" in India refers to: A) an intricate system of financial control through currency devaluation and reduction in the cash reserve ratio. B) an intricate system of economic governance through increasing privatization and economic decentralization. C) an intricate system of economic development through low taxes and zero custom duties. D) an intricate system of government economic control through permits and quotas. E) an intricate system of economic development through high exports and limited imports.

The _____ focused on improving farming techniques, increasing mechanization, and irrigating as well as introducing high-yielding seeds in India. A) White Revolution B) Blue Revolution C) Green Revolution D) Yellow Revolution E) Orange Revolution

General Secretary _____ was the first leader of the Soviet Union to end repressive political controls control on the media and the Russian culture in his efforts to implement a policy of glasnost. A) Eduard Shevardnadze B) Mikhail Gorbachev C) Boris Yelstin D) Leonid Brezhnev E) Yuri Andropov

The economic turbulence of the post-Gorbachev period led to the Yeltsin government instituting a series of economic measures. One of them was to galvanize the economy by: A) scrapping military expenditure and diverting money to fund economic reforms. B) encouraging unrestricted imports and banning exports. C) allowing the takeover of the Russian industries by the western multinational companies. D) reducing state interference in the private sector. E) reducing barriers to free trade.

Economic reforms in the 1990s privatized most industry in Russia, with notable exception in the _____ sector. A) textiles B) media C) defense D) agriculture E) education

The much criticized _____ initiated by the Russian government as part of the economic reforms in the 1990s, turned over major state-owned firms to politically connected 'oligarchs.' A) economic assistance scheme B) pyramid selling scheme C) loans-for-shares scheme D) cap and trade scheme E) advance fee scheme

The "lost decade" refers to that period in Brazil in the 1980s when: A) it plunged into chaos and civil war, which pushed back its economic growth by a decade. B) it plunged into a period of runaway inflation and negative growth rates. C) it plunged into a period of economic ruin when it was denied the benefits of globalization due to an economic boycott. D) it plunged into a period economic mayhem when unbridled capitalism ruined its agrarian economy. E) it plunged into a period of economic disaster in the form of an ill-planned attempt at establishing a centrally controlled economy.

Which of the following was true of the Real Plan implemented by Brazil in 1994? A) It emphasized the need for a strong currency, strict limits on government spending, and an opening up of the economy. B) It led to a period of high inflation and plunging growth rates, which forced the government to declare economic bankruptcy. C) It tried to boost the economy by encouraging unrestricted imports and banning exports. D) It tried to boost the economy by allowing the takeover of the coffee and sugar plantations by European multinational companies. E) It emphasized the need for undervalued interest rates and heavy government spending on public infrastructural projects.

Jim O'Neill coined the term _____, which refers to the group of four countries that are presently considered the hubs of economic and financial growth. A) NAFTA B) BRIC C) CIVETS D) NATO E) OPEC

Why does HDI provide a more comprehensive view of a country's development compared to the GDP?

"Poverty is not a measure of income alone." Elaborate.

What role did the zaibatsu play that led to the emergence of Japan as one of the strongest economies of the world?

UAE has one of the most culturally diverse workforces in the world. Comment.

What are the areas where emerging economies share common features?

What economic measures were taken by the Indian government to ward off the ignominy of defaulting on its foreign debt?

What was the effect of the apartheid system on the South African economy?

What are the observable changes in the South African business sector in the post-apartheid era?

What is referred to as the "the lost decade" of Brazil?

What was the Real Plan that was launched by the Brazilian government in 1994?

What do you understand by GDP at purchasing power parity (PPP)?

What is the Human Development Index and how does it differ from the GDP in measuring the development of a nation?

What were the repercussions of the political and economic reforms initiated by Russia in the 1990s?

In the Human Development Index, health is measured by _____ at birth.

HPI-2 also includes a fourth indicator to measure Human Poverty Index that measures _____ as represented by the rate of long-term unemployment.

_____ economies are postindustrial countries-typically with a high per capita income, competitive industries, transparent legal and regulatory environments, and well-developed commercial infrastructures.

The _____ represents the monetary union of twenty-seven European countries.

Honshu, Hokkaido, Kyushu, and Shikoku are the four _____ of the Japanese archipelago.

The _____ is a federation of seven states, called emirates because they are ruled by a local emir.

In the Human Development Index, _____ is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrollment ratio.

_____ are designated areas in the UAE that allow for 100 percent foreign ownership and charge no taxes.

There are two different HPI, one for developing countries (HPI-1) and another for a group of select _____ countries (HPI-2).

A market is defined as a(n) _____ when it begins to experience increasing economic freedom, gradual global integration, an expanding middle class, improving standards of living, social stability and tolerance, as well as an increase in cooperation with multilateral institutions.

Jim O'Neill coined the term _____, which refers to the group of four countries that are presently considered to be growth markets.

In the Human Development Index, the standard of living is measured by _____(PPP US$)

A(n) _____ is a country that can be defined as a society transitioning from a centrally managed economy to a free market-oriented economy.

The economic turbulence of the post-Gorbachev period forced the Yeltsin government to initiate a series of economic measures as a part of his _____ program.

Disinvestment (or divestment) from South Africa was first advocated in the 1960s, in protest of South Africa's system of _____.