1.A large international debt may cause a government to:

1. impose wage controls.

2. increase government spending.

3. impose price controls.

4. A, B, and C.

5. A and C.

2.according to the book, economic analyses become more complex when a firm enters overseas markets because, unlike the situation for a company operating domestically:

1. the uncontrollable economic variables must be forecast.

2. Management must operate in two new environments, foreign and international.

3. analysts must now forecast the values for both socioeconomic and economic variables.

4. economists know less about foreign exchange rates.

5. A and C.

3.According to the text, most of the fast-growing cities projected to be mega cities by the year 2015 are located in

a)Europe.

b)South America.

c)developed nations.

d)developing nations.

4. According to the text, population size

a)and employment rates are sufficient for estimating consumption of low-priced, mass-consumption products such as soap and economy automobiles.

b)and GNI/capita are necessary for estimating consumption of low-priced, mass-consumption products such as soap and soft drinks.

c)provides a basis for estimating consumption of low-priced, mass-consumption products, such as cigarettes and soap.

d)alone is insufficient for estimating consumption of any product.

5.According to the text, the market analyst may determine a country is not a good market by making a simple calculation based on:

1. GNI/capita, population by province, and the number of pharmacies.

2. GNI/capita, total population, and the size of the hidden economy.

3. Pet sales, number of CD players, and per-capita lint production.

4. GDP, total population, and income distribution.

6.Because of the importance of economic information to the control and planning functions at headquarters the collection of data and preparation of reports is usually the responsibility of:

a)government economists.

b)the home office.

c)economic consultants.

d)economists in the subsidiaries where changes are occurring.

7.Even though a nation's GNI is small, if a small percentage of its population receives a large percentage of that income:

a)it may be a good market for high-volume, low-priced consumer products.

b)B and C.

c)it may be a good market for low-volume, high-priced luxury products.

d)it may be a good market for high-priced industrial products.

8.Examples of socioeconomic data are:

a) total population, population density, and population distribution.

b) GNI/capita, total population, and population distribution.

c) total population, income distribution, and population density.

d) GNI, GNI/capita, income distribution.

9.From comparisons of income distribution studies over time, it appears that in early stages of development:

a)the middle quintile grows at the expense of the upper and lower quintiles.

b)income inequality stays the same.

c)the upper and lower quintiles grow at the expense of the middle quintile.

d)income inequality decreases.

10.Generally, because of higher birth and fertility rates, developing countries have more _________ populations than industrial countries.

a)healthy

b)youthful

c)unhealthy

d)mature

11.Generally, we can assume that the higher the GNI/capita value:

a)the lower the tax rate.

b)the larger the population.

c)the smaller the population.

d)the more advanced the economy.

12.GNI/capita, the first crude estimate of purchasing power, must be further refined by:

a)an examination of the amount of income tax paid.

b)determining the amount of discretionary income.

c)a census to determine the total population.

d)incorporating data on how the national income is actually distributed.

13.Income distribution studies confirm the belief that, generally, income is more evenly distributed in the:

a)developing nations.

b)richer nations.

c)newly industrialized nations.

d)Pacific Rim nations.

14.Japan is mentioned in the age distribution section because:

a)none of the above.

b)A, B and C.

c)it is the fastest-graying nation in the industrial world.

d)its social security funds may be depleted by this future wave of retirees

e)in the future it may have twice as many retirees as children.

15.Reductions in birth rates are occurring worldwide because:

a)governments are supporting family planning programs.

b)A, B, and C.

c)of a greater degree of urbanization.

d)women are gaining an enhanced status.

e)A and C.