30 Questions
Which type of economic system is characterized by the government playing a dominant role in the production of goods and services?
Command economy
In a market economy, what determines prices and helps achieve market clearance?
Supply and demand
Which type of economic system contains features of both command economies and market economies?
Mixed economy
In market-oriented economies, what key function does the government typically provide?
Extensive public welfare system
Which type of political system has shown success in developing a market economy with protected property rights in certain Asian countries?
Totalitarian regimes with strong property rights protection
What is a key element that impacts international business according to the text?
Technological advancements
Which of the following is NOT considered a welfare expenditure according to the text?
Education subsidies
What percentage of GDP in France did welfare expenditures amount to in 2019?
31%
Why did American and European governments acquire stakes in numerous companies during the 2008 global financial crisis?
To rescue financially struggling companies
In times of economic crises, what do welfare states typically do to support financially ailing corporations and individuals?
Offer financial support
What does 'economic development' refer to according to the text?
Transformation from low-income to modern industrial economies
Which measure is commonly used to assess a country’s economic development?
Gross National Income (GNI)
What is the principle used to make judicial decisions as mentioned in the text?
Right is what serves the people
How do private property rights impact entrepreneurship and innovation?
Incentivize entrepreneurship and innovation
In a democracy, what role does a limited government play?
Performs only essential functions for public good
How are property rights defined within democratic societies?
By market forces
What is the correlation suggested by various scholars mentioned in the text?
Correlation between democracy, economic freedom, and higher living standards
What is the function of a legal system as described in the text?
System for interpreting and enforcing laws
What are the limitations of absolute and comparative advantage trade theories based on the text?
Not accounting for transportation costs and differentiating features of goods
Which aspect is NOT considered by absolute and comparative advantage trade theories according to the text?
Branding and differentiating features
How can advantages be achieved on a firm level according to the text?
By achieving economies of scale and employing competitive business strategies
What can distort free trade according to the text?
Implementing protectionist measures like subsidies or tariffs
Which of the following is an example of a freely tradeable service according to the text?
Banking services
What aspect do absolute and comparative advantage trade theories fail to consider according to the text?
Branding and differentiating features of products
What is the main objective of a Differentiation strategy?
To obtain a competitive advantage by offering unique products or services
Which of the following is NOT an example of a tax incentive mentioned in the text?
Import tariffs reduction on raw materials
What type of policies are mentioned as part of a national industrial policy?
Monetary and fiscal policies
How did European governments support Airbus in the aviation industry?
By providing subsidies for job creation and technology advancement
What effect did devaluating the national currency have according to the text?
Promote exports
How did the Differentiation strategy contribute to Airbus's success compared to Boeing?
By offering distinguishable products through government support
Learn about the relationship between political systems and economic growth, exploring how different regimes impact economic development. Discover examples where totalitarian regimes in Asia have successfully fostered rapid economic growth by embracing market economies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
