38. _____ is regarded as a yardstick for the economic activity of a country; it measures the
total annual income received by residents of a country.
39. Which of the following statements is true about gross national income (GNI)?
40. To account for differences in the _____, one can adjust GNI per capita by purchasing
power.
41. Which of the following statements is true of purchasing power parity (PPP)?
42. In 2010, the PPP per capita of China was $7,640 and the PPP per capita of the United
States was $47,360. This means that the:
43. 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.
44. Black economy is most likely to be prevalent when:
45. The _____ is based on three measures: life expectancy at birth, educational attainment,
and average incomes based on PPP estimates.
46. The Human Development Index comes close to Amartya Sen’s conception of how
development should be measured although _____, suggested by Sen in his thesis, is not included
in the index.
47. Which of the following is an indicator of low human development in a country?
48. _____ is broadly defined as the development of new products, processes, organizations,
management practices, and strategies.
49. _____ first commercialize innovative new products and processes, and help provide much
of the dynamism in an economy.
50. Which of the following best exemplifies an entrepreneur?
51. Which of the following statements is true about innovations and entrepreneurship?
52. Which of the following creates an unfavorable environment for innovations and
entrepreneurship?
53. Which of the following creates an environment that is conducive to product and process
innovations and to entrepreneurial activity?
54. Due to strong legal protection of property rights, businesses and individuals will:
55. People in the West tend to associate a(n) _____ with a free market system, strong
property rights protection, and economic progress.
56. Only a totalitarian regime that is committed to _____ is capable of promoting economic
growth.
57. The influential Peruvian development economist Hernando de Soto has argued that much
of the developing world will fail to reap the benefits of capitalism: