Compare and contrast globalization as it existed in the late nineteenth century with globalization at the turn of the twenty-first century (i.e., 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.
You might also like to view...
________ is to the random walk hypothesis as ________ is to behavioral economics
A) Sober calculation; paternal guidance B) Surprise; gratification C) Rational ignorance; studied optimization D) Unpredictability; regret
When the Fed buys T-bills from banks:
A. the demand for bank reserves rises. B. the supply of T-bills rises. C. the supply of bank reserves rises. D. the supply of bank reserves falls.
Potential Pitfalls When Using Scientific Thinking
What will be an ideal response?
Suppose a market with a Cournot structure has five firms and a market price elasticity of demand equal to -2. What is a Cournot firm's Lerner Index?
A) .1 B) .2 C) .5 D) 1