Hello friends in this post we are going to discuss about National Differences in Economic Development True False | National Differences in Economic Development Question Answers | National Differences in Economic Development MCQ with answers | National Differences in Economic Development Objective type questions
1) GDP allows a more direct comparison of living standards in different countries than other measures.
FALSE
2) In Sen’s view, development is an economic process that should be assessed primarily by material output measures such as GNI per capita.
FALSE
3) GDP is one of the measures used by the Human Development Index (HDI) to measure thequality of human life in different nations.
FALSE
4) Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.
FALSE
5) If a country’s economy is to sustain long-term economic growth, the business environment must be conducive to innovations and entrepreneurial activity.
TRUE
6) 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.
FALSE
7) 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.
TRUE
8) Most property in poor countries is owned legally by investors.
FALSE
9) Totalitarian states promote human freedom and human development, which facilitates economic progress.
FALSE
10) 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.
FALSE
11) 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.
FALSE
12) New information and communication technologies have enabled the spread of democratic ideals.
TRUE
13) 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.
TRUE
14) Hong Kong has economic freedom, so it follows that it also has political freedom.
FALSE
15) In a command economy, the prices are determined by the free interplay of demand and supply.
FALSE
16) In mixed economies, in certain sectors the state sets prices, owns businesses, limits private enterprise, restricts investment by foreigners, and restricts international trade.
TRUE
17) 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.
TRUE
18) For privatization to work, it must also be accompanied by a more general deregulation and opening of the economy.
TRUE
19) 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.
FALSE
20) A country with a well-functioning market economy does not need laws protecting private property rights and providing mechanisms for contract enforcement.
FALSE
21) 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.
TRUE
22) A market with a large number of consumers with low living standards will have a relatively large market when measured in economic terms.
FALSE
23) 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.
TRUE
24) A country’s economic system and property rights regime are reasonably good predictors of economic prospects.
TRUE
25) Economic risks are independent of political risk.
FALSE