Chapter 4 The Economic Environment
1) The recent global economic crisis has led to which of the following?
A) governments seeking to impose more constraints on capitalism
B) governments seeking to eliminate constraints on capitalism
C) governments seeking to increase the interdependence of developing economies
D) governments seeking to eliminate the interdependence of developing economies
2) Income, purchasing power, market size, and market type are all key elements of a(n) ________.
A) political environment
B) cultural environment
C) economic environment
D) legal environment
3) From the 1980s to the most recent global economic crisis, which of the following was the economic trend?
A) governments intervening more in economic affairs
B) governments increasing the isolation of their nations' economies
C) countries turning away from the principles and practices of free markets
D) countries adopting the principles and practices of free markets
4) There is no universal scheme to assess the performance and potential of a country's economic environment due to three conditions. Which of the following is one of those conditions?
A) the difficulty of identifying a definitive set of predictive economic indicators
B) the static nature of the marketplace
C) the isolation of most markets from each other
D) the lack of reliable economic data from developed economies
5) Gross national income (GNI), the broadest measure of economic activity for a country, is defined as ________.
A) the total of all consumption and investment that takes place in a national economy
B) the income generated in one country, regardless of who owns the productive assets
C) the total of all economic activity in one country less services, such as government administration, health services, and education
D) the income generated by both total domestic