In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.

In most cases, if the misery index of a country is high, then consumers and businesses are less likely to spend and invest.

Answer: TRUE

The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing, incomes, security, and work-life balance.

The Happy Planet Index measures well-being and perceptions of living conditions by assessing areas such as housing, incomes, security, and work-life balance.

Answer: FALSE

Between 2000 and 2008, China's economy grew at a faster rate than Japan's economy.

Between 2000 and 2008, China's economy grew at a faster rate than Japan's economy.

Answer: TRUE

The BRICs are the strongest developed economies in the world.

The BRICs are the strongest developed economies in the world.

Answer: FALSE

In response to the global credit crisis, the United States government took actions that increased economic freedom.

In response to the global credit crisis, the United States government took actions that increased economic freedom.

Answer: FALSE

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

Answer: TRUE

There is a positive correlation between economic freedom and economic growth.

There is a positive correlation between economic freedom and economic growth.

Answer: TRUE

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private, but the government intervenes in many private economic decisions.

A mixed economy is a system where economic decisions are largely market driven and ownership is largely private, but the government intervenes in many private economic decisions.

Answer: TRUE

In a mixed economy, all dimensions of economic activity, including pricing and production decisions, are determined by a central government plan.

In a mixed economy, all dimensions of economic activity, including pricing and production decisions, are determined by a central government plan.

Answer: FALSE

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Answer: FALSE

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.

In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.

Answer: TRUE

A market economy is one in which resources are primarily owned and controlled by individuals and companies.

A market economy is one in which resources are primarily owned and controlled by individuals and companies.

Answer: TRUE

A market economy gives individuals the freedom to decide where to work doing what, how to spend or save money, and whether to consume now or later.

A market economy gives individuals the freedom to decide where to work doing what, how to spend or save money, and whether to consume now or later.

Answer: TRUE

The range of economic systems in the world today, when represented on a spectrum, has one end anchored by the idea of capitalism, the other with that of socialism.

The range of economic systems in the world today, when represented on a spectrum, has one end anchored by the idea of capitalism, the other with that of socialism.

Answer: FALSE

An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.

An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.

Answer: TRUE

In a country's balance of payments, the current account and the capital account represent equal values.

In a country's balance of payments, the current account and the capital account represent equal values.

Answer: FALSE

The balance of trade is a record of a country's international transactions that take place among companies, governments, or individuals.

The balance of trade is a record of a country's international transactions that take place among companies, governments, or individuals.

Answer: FALSE

There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.

There is a strong relationship between skewed income distributions and the split between those who live in urban settings versus those who live in rural areas.

Answer: TRUE

Uneven income distribution is largely a problem confined to poorer nations.

Uneven income distribution is largely a problem confined to poorer nations.

Answer: FALSE

External debt results when the government spends more than it collects in revenues, whereas internal debt results when a government borrows money from foreign lenders.

External debt results when the government spends more than it collects in revenues, whereas internal debt results when a government borrows money from foreign lenders.

Answer: FALSE