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Economics

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Gussie Bechtelar

Lvl 9
โˆ™ 2021-10-31 18:33:43
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Cards in this guide (29)
What type of policy is a certainty that the insurance company will have to make payment

None.

What kind of loans does the World Bank make

The world bank lends money to memeber nation so that they could be carry out the work of public importance and usefulness.

Why do central banks play an important role in the global economy

Central banks control the foreign currency reserves that are used for international trade.
They also set each country's monetary policies.

Why is globalization potentially damaging to the environment

Protecting the environment increases production costs and reduces competitiveness.

Why does the growth of international trade lead to a rising global standard of living

International trade enables specialization, which brings increased efficiency and greater competition.

Why does globalization lead to a reduction in wages in developed countries

Increased mobility allows producers to move jobs to lower-cost labor markets.

What is the main goal of the WTO

To assure that international trade flows smoothly and freely

Why has globalization led to an increasing income gap between rich and poor countries

Countries with well-established infrastructure and productive capacities have more competitive industries.

How does the WTO help stabilize the global economy

By assuring that producers will have open access to necessary resources

In order for a country to specialize its production what must there be

There must be an international division of labor for a country to specialize its production.

Why does the World Bank charge little or no interest on the loans it makes

Its main purpose is to promote development, not make profits.

Besides tuition what is one cost of attending college

Missed opportunities to earn income

What kind of insurance provides replacement value for personal possessions

Brand new items to replace the items lost (APE*)

What pair of words best describes the purpose of using cost benefit analysis

To make decisions that maximize benefits.

Rational and Subjective.

Objective and systematic

pleasure (benefit) and pain (cost)

calculating and coherent

Rational and structured =making a list of costs and benefits

Why does globalization give countries an incentive to reduce wages for their workers

Lower production costs help lure foreign investment.

Why don't companies doing business in countries with repressive governments object to the human rights abuses

Companies taking advantage of low labor costs don't make trouble for repressive governments.

Why do the actions of central banks have an important effect on the global economy

Control of the money supply determines how much money is available for international trade.

Why does the IMF impose conditions on its loans

To help manage the economies of struggling countries

What characterizes developing countries

A low standard of living.

Why does the US textile industry lose jobs to foreign countries

Labor intensive production is cheaper to do in countries with lower pay rates. In the US, there's a minimum wage, other places there isn't.

Some other textile tasks, like dyeing(which is often toxic), is cheaper to do in places with less environmental restrictions.

Cheap imports can force U.S. companies out of business.


Foreign countries often accept lower salaries and poorer working conditions, meaning stuff can be made cheaper there.
When does country X have a comparative advantage in the production of coffee

When they can produce it at a lower opportunity cost than other countries.

What is Ricardo's theory of comparative advantage

Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower.

- Comparative Advantage

• A nation having absolute disadvantages in the production of two goods with respect to another nation has a comparative or relative advantage in the production of the good in which its absolute disadvantage is less

Which of these is a problem that globalization poses for the US government

Increased security concerns

When you rent an apartment you make a monthly payment to whom

A landlord

If developing countries have weak domestic industries they do not benefit from what

Free-trade policies

What can help reduce the total cost of living in an apartment

Finding a roommate

Why do lower labor costs in other countries lead to job loss in the United States

Lower labor costs in other countries lead to job less in the United States because it enables producers to undersell domestic producers.

What does absolute advantage have to do with making economic choices

Think that you're country A, wanting to buy pen and paper.

Country B produces 1 million pen and 1 BILLION paper

Country C produces 1 BILLION pen and 1 million paper

Or, country B has the absolute advantage over production of paper while

country C has the absolute advantage over production of pen.

Coming back our theory of economy of scale, we know that to a certain point, increased production would lead to lower average cost and thus, lower price.

This would mean that paper from country B is cheaper than country C whereas pen from country C is cheaper than country B.

Therefore, you would choose to trade paper with country B while trading pen with country C.

And this is why it is important to making economic choices.

What was the reason for support for the republicans

we dont knw so dont ask

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