BUS1203 Chapter 4 Revision

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its ________.

• Gross National Product (GNP)
• Gross Domestic Product (GDP)
• Net National Product (NNP)
• Net Domestic Product (NDP)

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

• gross national product

• gross domestic product

• purchasing power

• purchasing power parity

Gross national income (GNI), the broadest measure of economic activity for a country, is defined as the ________.

• total of all consumption and investment that takes place in a national economy

• income generated in one country, regardless of who owns the productive assets

• total income earned by a country's residents and businesses, including income earned abroad
• total of all economic activity in one country less services, such as government administration, health services, and education

The GDP per capita of a country is higher than that of Thailand. If the GDP per capita of the country is adjusted for PPP, the country's revised GDP is lower than that of Thailand. Which of the following is most likely TRUE about the country?

• There are fewer goods available for purchase in the country than in Thailand.

• The cost to buy everyday goods in the country is approximately the same as in Thailand.

• It costs less to buy everyday goods in the country than in Thailand.

• It costs more to buy everyday goods in the country than in Thailand.

Which results in a loss of assets, without compensation?

• Repatriation

• Confiscation

• Expropriation

• Inflation

________ is the forced transfer of assets from a company to the government with compensation.

• Privatisation

• Expropriation
• Nationalisation

• Confiscation

________ refers to the transfer of ownership of resources from the private to the public sector.

• Nationalisation

• Decentralisation

• Conversion

• Privatisation

Guanxi, in the Chinese business context, means ________.

• bribing government officials

• a government regulation
• manufacturing inexpensive products

• personal relationships

________ is the process by which a nation changes its fundamental economic organisation and creates new free-market institutions.

• Central planning

• Economic transition

• Industrialisation

• Economic liberalism

Which of the following is a major obstacle to economic transition?

• Lack of government support

• Environmental degradation

• Privatisation

• Black markets