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Mixed Economy and Economic Freedom

Chapter 4 Study Guide The Economic Environment 1) The recent global economic financial crises have led to proposals of more or less regulations? 2) Income, purchasing power, market size, and market type are all key elements of the political or the economic environment? 3) From the sass to the most recent global economic crisis, did countries turn away from the principles and practices of free markets or adopt 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.

What are they? 5) Gross national income (IN), the broadest measure of economic activity for a country, is defined as . 6) In computing IN, the value of a Ford car that is manufactured in Mexico using capital from the United States would be added to the IN of which: United States or Mexico? 7) 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 commonly referred to as the . ) To determine whether the standard of living within a country is rising or falling,

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economists would cost likely use which of the following measures? 9) Some argue that gross national income, and its expression in terms of per capita, growth rate, or PIP refinements, focuses too much on thereby only partially representing the scale and scope of a country’s level of development. 10) The United Nations’ measures life expectancy, educational attainment, and the standard of living in a given country. 1) The Human Development Index measures the average achievements in a country on three basic dimensions of human development, including . 12) The starts with the same accounting framework used to calculate GAP but then adjusts or values assigned to environmental quality, population health, livelihood security, equity, free time, and educational attainment. 13) A worrisome outcome of chronic inflation is that it tends to is a general, sustained rise in prices measured against a standard level of purchasing power. 5) In order to reduce or control inflation, a government would most likely do which of the following?

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