Final answer:
The checklist approach to assessing economic risk is True. It relies on measurable indicators that reflect a country's creditworthiness and economic health, encompassing various economic activities and policies, and helps in identifying trends and making informed decisions.
Step-by-step explanation:
The statement that the checklist approach to assessing economic risk relies on easily measurable and timely criteria that reflect changes in the creditworthiness of a country is True. This approach typically involves monitoring certain indicators that can provide insights into the economic health and stability of a nation. These indicators might cover aspects such as employment rates, inflation, currency stability, fiscal policy, and external factors such as trade balances and international capital flows.
As an example, if a country were to encounter events like natural disasters, wars, or massive unemployment, these would be considered occurrences of economic risks. These events can cause economic uncertainty, leading to effects such as diminished savings or changes in government regulatory policies. In practice, a practical approach to microeconomic policy involves understanding the strengths and weaknesses of both the market and government interventions.
The checklist approach helps in identifying trends and estimating economic freedom or restrictions within a country, thus assisting in the assessment of economic risk and aiding in the decision-making process for investors, policymakers, and other stakeholders.