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46) According to Amartya Sen, development should be
A) seen as a process of expanding the real freedoms that people experience.
B) seen as a nonpolitical concept that focuses on the net income of a country.
C) viewed as a purely economic process.
D) assessed by material output measures such as GNI per capita.
47) Which of the following statements pertaining to innovation and entrepreneurship is true?
A) They are the engines of growth.
B) They require strong legal systems.
C) They require state ownership of means of production.
D) They require a mixed economy.
48) A market economy encourages innovation because
A) state ownership of enterprises reduces risks of innovation.
B) economic freedom leads to greater incentives for innovation.
C) government-owned and funded research centers become hubs of innovation.
D) the prices of goods and services, including new products, are fixed by government.
49) Stagnation can occur in planned economies because
A) entrepreneurial individuals have few economic incentives for innovation.
B) private ownership of means of production leads to exploitation of workers.
C) prices of goods and services are fixed by market forces of supply and demand.
D) lack of barriers to trade results in increased competition for domestic producers.
50) ________ is required for a business environment to be conducive to innovation and
entrepreneurial activity.
A) State ownership of means of production
B) Strong legal protection of property rights
C) Barriers to foreign trade and investment
D) Government regulation of the market
51) 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
A) have political stability.
B) invest in infrastructural development.
C) have better defined and secure property rights.
D) have adequate market regulation.
52) 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) detailed state planning
B) restricting direct investment by foreign enterprises
C) strong property rights
D) market regulation
53) A free market economy in which property rights are protected leads to subsequent economic
growth that often leads to the establishment of
A) a democratic regime.
B) a planned economy.
C) government-owned enterprises.
D) a socialist economy.
54) 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?
A) A wave of democratic revolutions has swept the world.
B) Totalitarian governments have arisen, replacing democratically elected governments.
C) There has been a strong move toward centrally planned economies and away from free market
economic models.
D) Mixed economies are fast replacing market economies.
55) 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.
A) Samuel Huntington
B) Amartya Sen
C) Francis Fukuyama
D) Hernando de Soto
56) Which of the following is one of the three main reasons for the spread of democracy?
A) New information and communication technologies have broken down the ability of the state to
control access to uncensored information.
B) Totalitarian regimes delivered economic progress to the bulk of their populations but not
enough to the power brokers.
C) Democratic regimes failed to deliver economic progress to the vast bulk of their populations.
D) Economic advances in the past quarter-century have led to the emergence of a class of ruling
elite.
57) 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?
A) Amartya Sen
B) Samuel Huntington
C) Francis Fukuyama
D) Hernando de Soto
58) One of the reasons for the spread of democracy is the emergence of ________ who have
pushed for democratic reforms.
A) a more vocal working poor
B) better educated lower classes
C) a desperate urban poor
D) increasingly prosperous middle and working classes
59) Since the late 1980s, there has been a spread of democracy. This is because
A) a state's ability to control access to uncensored information has increased.
B) the socialist model failed to deliver economic progress to the vast bulk of their populations.
C) in many countries the middle and working classes have become less powerful.
D) in many countries state-ownership of firms has encouraged innovation and entrepreneurship.
60) 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
A) state ownership of productive resources
B) regulated markets
C) democratic reforms
D) planned economies
61) Political scientist Samuel Huntington argues that modernization in non-Western societies can
result in a retreat toward the traditional. This is exemplified by the
A) Islamic resurgence.
B) popularization of modern gadgets.
C) adoption of Western culture.
D) higher levels of literacy and education.
62) According to political scientist Samuel Huntington, the rise of Islamic fundamentalism is a
response to the
A) corruption prevalent in planned economies.
B) restricted access to formal education.
C) alienation produced by modernization.
D) restrictions associated with totalitarian regimes.
63) Which of the following statements is true about Samuel Huntington?
A) Samuel Huntington argues that there is a universal civilization based on widespread acceptance
of Western democratic ideals.
B) Samuel Huntington argues that the rise of Islamic fundamentalism is a response to the
alienation produced by modernization.
C) Samuel Huntington argues that global terrorism is a product of the static nature of traditional
values and religious systems.
D) Samuel Huntington argues that many societies, by adopting the material paraphernalia of the
modern world, are becoming more Western.
64) Paralleling the spread of democracy since the 1980s has been the transformation from
A) free-market economies to socialist economies.
B) mixed economies to collectivist economies.
C) open economies to closed economies.
D) command economies to market-based economies.
65) Since the 1980s, there has been a transformation from ________ economies to ________
economies.
A) mixed; market-based
B) centrally planned command; market-based
C) centrally planned command; mixed
D) market-based; centrally planned command
