MGMT 425 EVALUATION 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔________ policies control the currency supply and interest rates in a market
economy.
A) Fiscal
B) Economic
C) Monetary
D) Social - ✔✔C) Monetary
✔✔Which of the following would characterize a nation with high degree of economic
freedom?
A) low tariffs
B) strict trade policies
C) government interventions
D) flourishing black markets - ✔✔A) low tariffs
✔✔The ________ approach to national economics calls for less government
interference in commerce and greater individual economic freedom.
A) totalitarian
B) laissez-faire
C) guanxi
D) centrally planned economy - ✔✔B) laissez-faire
✔✔Which of the following would most likely characterize a nation with a low degree of
economic freedom?
A) low government intervention
B) protected property rights
C) strict trade policies
D) low tariffs - ✔✔C) strict trade policies
✔✔Which of the following terms refers to the broadest measure of economic
development of a country?
A) gross domestic product (GDP)
B) purchasing power parity (PPP)
C) gross national product (GNP)
D) human development index (HDI) - ✔✔C) gross national product (GNP)
✔✔________ is the value of all goods and services produced by the domestic economy
over a one-year period.
A) Gross domestic product (GDP)
B) Human development index (HDI)
C) Gross national product (GNP)
D) Purchasing power parity (PPP) - ✔✔A) Gross domestic product (GDP)
, ✔✔The ________ of a country is its gross national product divided by its population.
A) GNP per capita
B) GDP per capita
C) purchasing power parity
D) purchasing power - ✔✔A) GNP per capita
✔✔The relative ability of two countries' currencies to buy the same basket of goods in
those two countries is called ________.
A) gross national product
B) gross domestic product
C) purchasing power
D) purchasing power parity - ✔✔D) purchasing power parity
✔✔________ is the value of goods and services that can be purchased with one unit of
a country's currency.
A) Potential output
B) Gross national product
C) Purchasing power
D) Gross domestic product - ✔✔C) Purchasing power
✔✔An investor wants to invest in a country that has a high gross national income (GNI).
Which of the following countries would most likely qualify as a prospect?
A) Nepal
B) India
C) Japan
D) Vietnam - ✔✔C) Japan
✔✔Which of the following terms is used to refer to the exchange of goods and services
for other goods and services instead of money?
A) fiat money
B) letter of credit
C) barter
D) guanxi - ✔✔C) barter
✔✔The GDP per capita of a country is lower than that of France. If the GDP per capita
of the country is adjusted for PPP, the country's revised GDP is higher than that of
France. Which of the following is most likely true about the country?
A) The cost of living in the country is higher than that of France.
B) The cost of living in the country is lower than that of France.
C) The cost of living in the country is approximately equal to that of France.
D) The cost of living in the country has increased over the past decade. - ✔✔B) The
cost of living in the country is lower than that of France.
ANSWERS RATED A+
✔✔________ policies control the currency supply and interest rates in a market
economy.
A) Fiscal
B) Economic
C) Monetary
D) Social - ✔✔C) Monetary
✔✔Which of the following would characterize a nation with high degree of economic
freedom?
A) low tariffs
B) strict trade policies
C) government interventions
D) flourishing black markets - ✔✔A) low tariffs
✔✔The ________ approach to national economics calls for less government
interference in commerce and greater individual economic freedom.
A) totalitarian
B) laissez-faire
C) guanxi
D) centrally planned economy - ✔✔B) laissez-faire
✔✔Which of the following would most likely characterize a nation with a low degree of
economic freedom?
A) low government intervention
B) protected property rights
C) strict trade policies
D) low tariffs - ✔✔C) strict trade policies
✔✔Which of the following terms refers to the broadest measure of economic
development of a country?
A) gross domestic product (GDP)
B) purchasing power parity (PPP)
C) gross national product (GNP)
D) human development index (HDI) - ✔✔C) gross national product (GNP)
✔✔________ is the value of all goods and services produced by the domestic economy
over a one-year period.
A) Gross domestic product (GDP)
B) Human development index (HDI)
C) Gross national product (GNP)
D) Purchasing power parity (PPP) - ✔✔A) Gross domestic product (GDP)
, ✔✔The ________ of a country is its gross national product divided by its population.
A) GNP per capita
B) GDP per capita
C) purchasing power parity
D) purchasing power - ✔✔A) GNP per capita
✔✔The relative ability of two countries' currencies to buy the same basket of goods in
those two countries is called ________.
A) gross national product
B) gross domestic product
C) purchasing power
D) purchasing power parity - ✔✔D) purchasing power parity
✔✔________ is the value of goods and services that can be purchased with one unit of
a country's currency.
A) Potential output
B) Gross national product
C) Purchasing power
D) Gross domestic product - ✔✔C) Purchasing power
✔✔An investor wants to invest in a country that has a high gross national income (GNI).
Which of the following countries would most likely qualify as a prospect?
A) Nepal
B) India
C) Japan
D) Vietnam - ✔✔C) Japan
✔✔Which of the following terms is used to refer to the exchange of goods and services
for other goods and services instead of money?
A) fiat money
B) letter of credit
C) barter
D) guanxi - ✔✔C) barter
✔✔The GDP per capita of a country is lower than that of France. If the GDP per capita
of the country is adjusted for PPP, the country's revised GDP is higher than that of
France. Which of the following is most likely true about the country?
A) The cost of living in the country is higher than that of France.
B) The cost of living in the country is lower than that of France.
C) The cost of living in the country is approximately equal to that of France.
D) The cost of living in the country has increased over the past decade. - ✔✔B) The
cost of living in the country is lower than that of France.
