IBM CHAP 3A

GDP allows a more direct comparison of living standards in different countries than other measures.

• True

• False

In Sen's view, development is an economic process that should be assessed primarily by material output measures such as GNI per capita.

• True

• False

GDP is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

• True

• False

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

• True

• False

If a country's economy is to sustain long-term economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

• True

• False

The state of Illinois was having budget difficulties, so it hired several private management consultancy firms to manage some state-owned enterprises. This is an example of privatization.

• True

• False

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation and entrepreneurial activity in developing nations.

• True

• False

Most property in poor countries is owned legally by investors.

• True

• False

Totalitarian states promote human freedom and human development, which facilitates economic progress.

• True

• False

Since the late 1980s, there has been a strong move away from a more free market economic model and toward more centrally planned and mixed economies.

• True

• False