Compare and contrast globalization as it existed in the late nineteenth century with globalization today
What will be an ideal response?
I would expect my students to address the following:
• That in percentage terms, a significant portion of world economic activity was engaged in trade in both periods.
• That in the prior period, trade was mostly in agricultural products and commodities, whereas today capital goods play an increasingly important role.
• That labor may have been more mobile in the past than it is today due to changes in immigration policies.
• That capital was mobile in both periods, but might be more so today, especially given new instruments.
• That changes in transportation and communication were significant in both periods in terms of reducing transaction costs and encouraging product and factor mobility.
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Based on the figure above, curve C is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) average variable cost curve. E) average fixed cost curve.
The process by which identical products that are tradeable converge to the same price is called
A) arbitrage. B) hedging. C) speculation. D) risk aversion.
Output supply is increasing in the interest rate because
A) labor demand is increasing in the interest rate. B) labor demand is decreasing in the interest rate. C) labor supply is increasing in the interest rate. D) labor supply is decreasing in the interest rate.
A good would have a high price elasticity of demand if: a. there are many close substitutes for the good available in the market. b. the good is used every day by almost every household in the economy. c. the good has a low cost in proportion to most consumers' budgets
d. consumers cannot delay the purchase of this good.