Question : 41.Which of the following statements true of purchasing power parity : 1299224

41.Which of the following statements is true of purchasing power parity (PPP)?  

A. Purchasing power parity figures can be misleading because they don’t consider differences in the cost of living.

B. The PPP for different countries is adjusted (up or down) depending upon whether the cost of living is lower or higher than in Great Britain.

C. The PPP data gives a static picture of economic development.

D. China’s GNI PPP per capita is higher than that of the United States.

E. Purchasing power parity (PPP) adjustment, does not allow for a direct comparison of living standards in different countries.

42.In 2010, the PPP per capita of China was $7,640 and the PPP per capita of the United States was $47,360. This means that the: 

A. GNI per capita was greater in China.

B. percent of goods and services consumed in the United States was lower.

C. standard of living in China was better.

D. cost of living was lower in China.

E. annual average GDP growth rate was lower in China.

43.As a result of _____, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy.  

A. a large population

B. active bartering

C. deregulation

D. nationalization

E. closed totalitarianism

44.Black economy is most likely to be prevalent when:  

A. large amounts of economic activity are in the form of legally recorded cash transactions.

B. people engage in barter agreements to avoid paying taxes.

C. a countries GNI per capita exceeds $30,000.

D. the expenses of the government is lesser than that of its income.

E. a country is in trade surplus with another foreign country.

45.The _____ is based on three measures: life expectancy at birth, educational attainment, and average incomes based on PPP estimates.  

A. Human Development Index

B. Gross National Income

C. Gross Domestic Product

D. Cost of Living Index

E. Cash Reserve Ratio

46.The Human Development Index comes close to Amartya Sen’s conception of how development should be measured although _____, suggested by Sen in his thesis, is not included in the index.  

A. basic health care

B. political freedom

C. educational attainment

D. basic average income

E. life expectancy at birth

47.Which of the following is an indicator of low human development in a country?  

A. A score of 0.3 on the HDI scale

B. Rapid “democratization” of political communities

C. Large population due to a highly developed health care system

D. Giving citizens a voice in the important decisions made for the community

E. A higher GNI per capita than the United States

48._____ is broadly defined as the development of new products, processes, organizations, management practices, and strategies.  

A. Privatization

B. Economic deregulation

C. Boundary spanning

D. Innovation

E. Benchmarking

49._____ first commercialize innovative new products and processes, and help provide much of the dynamism in an economy.  

A. Gatekeepers

B. Category captains

C. Boundary spanners

D. Managers

E. Entrepreneurs

50.Which of the following best exemplifies an entrepreneur?  

A. Sam, an employee at a supermarket, is solely responsible for all the purchases and sales at the grocery department.

B. Joe recycles old household articles to build phones, radios, and other things for his personal use.

C. Max makes his living by investing in small companies that have the potential to grow.

D. Javier purchased an invention of his friend to start a company that processes plastic bags into synthetic cloth.

E. Ryan invented an anti-aging formulation and sold it to a major pharmaceutical firm.