30 Questions
Which of the following factors can foster greater economic development?
Democratic forms of government
Which countries have high GDP?
Japan, Sweden, Switzerland, Australia, and the United States
What does Gross Domestic Product (GDP) measure?
Total monetary value of all the finished goods and services produced within a country's borders
What does Purchasing Power Parity (PPP) adjust in gross domestic product per capita?
Differences in cost of living
What do GDP and PPP data consider?
Differences in cost of living
Which countries are currently relatively poor but have rapidly growing economies?
China and India
What is the Human Development Index (HDI) used for?
Measuring quality of human life in different nations
According to Amartya Sen, what does development require?
Removal of major impediments to freedom
Which of the following are factors that can affect how attractive a nation is for doing business?
Legal systems that better enforce property rights
What do official figures of economic development often not account for?
Black economy transactions
Which of the following is NOT a potential risk associated with doing business internationally?
Technological risk
What is a key requirement for privatization to work effectively?
All of the above
Which factors are good predictors of a country's economic prospects?
Property rights regime and education system
What is the main implication of changing political economy discussed in the text?
Western ideology becoming less prevalent
What is one of the benefits of doing business internationally based on the text?
First-mover advantages
What is a key requirement for a well-functioning market economy according to the text?
All of the above
What is a potential risk mentioned in the text regarding doing business internationally?
Political risk
What is a potential implication of changing political economy mentioned in the text?
Return of totalitarian regimes
What is a key factor in determining the overall attractiveness of doing business in a country?
Costs and risks
What is a key requirement for privatization to guarantee economic growth according to the text?
Opening of the economy
Which factor is NOT necessary for innovation and entrepreneurship to thrive in an economy?
Democratic regime
What is the main reason why inadequate property protection limits economic growth in developing nations?
Risk of innovations and potential profits being stolen
According to economist Hernando de Soto, what is the impact of inadequate property protection on economic growth in developing nations?
It has a negative impact
Which type of government is more conducive to long-term economic growth, according to the text?
Democratic regimes
What is the relationship between economic growth and the establishment of democratic regimes?
Economic growth leads to the establishment of democratic regimes
According to economist Jeffrey Sachs, what is the impact of favorable geography on a country's engagement in trade and market-based systems?
It has a positive impact
What is the main reason why countries that invest in education have higher growth rates?
Their workforce is more productive
How have countries in Southeast Asia offset their geographical disadvantage?
By investing in education
What is the main reason why countries with a young and growing population have a greater growth potential?
They have a larger workforce
What has been the trend in terms of government systems since 2005, according to the text?
A shift towards more authoritarian governments
Test your knowledge on economic development and its various factors that impact a nation's attractiveness for doing business. Explore the role of democratic governments, market-based economic reforms, legal systems, and GDP in fostering greater economic development.
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