The World Bank tracked the performance of countries that had undergone varying degrees of globalization since the 1960s. Which of the following was a conclusion of the study?
a. The process of globalization widened the gap between rich countries and poor countries.
b. The growth rates of globalizing countries were higher than the growth rates of nonglobalizers.
c. The fraction of the very poor increased in newly globalized economies.
d. Globalization increased income inequality.
e. Unemployment increased in newly globalized countries.
b
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Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:
a. efficiency. b. consumer surplus. c. economic profit in the long run.
In the simple circular flow model containing just households and business firms, all income is received by households in exchange for
A) consumer expenditures. B) wages. C) labor services. D) product.
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology. This explanation would require that
A) workers withdraw from the labor force to learn about the new technology. B) a large number of new entrants be attracted to the labor force. C) managers be reluctant to adopt changes. D) workers time at their jobs be diverted from production to learning the technology.
Refer to Scenario 5.4. What is the pay-off of outcome C?
A) -150 B) 0 C) 25 D) 100 E) 150