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Economics

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Garland Schimmel

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Cards in this guide (24)
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.

What do capital controls prevent

Speculators from rushing into and out of a country's market and disrupting its economy./

What does increasing consumer confidence do

Increases purchases from producers

Foreign aid is intended to result in what

Foreign aid is intended to result in development.

How can a country respond to a trade embargo

By seeking other trading partners

it could pursue a policy of national self-sufficiency

What is the main purpose of the loans made by the World Bank

To help countries achieve sustainable development

Globalization creates greater what

Interconnections among the people and economies of the world

During the period of colonization developed countries did what

Extracted resources from their colonies

Politicians approve pork barrel spending for what purpose

To win political support

The government can prevent the shortages that accompany price ceilings by doing what

Rationing

The process of globalization involves an increase in what

The mobility of goods, services, labor, and capital

Increasing specialization within the global economy depends on what

International Trade

How might a country respond to a trade embargo

It could pursue a policy of national self-sufficiency.

Why does the IMF require countries to accept economic policy recommendations along with the loans it gives

The IMF wants to fix the economies of countries that need its help.

When might a country specialize in producing a particular good

When a country has an absolute advantage in production of that good it may specialize in producing that good.

Tariffs differ from taxes because tariffs are what

Only collected on imported goods

What does complying with consumer-protection regulations do

Complying with consumer protection regulations increases production costs and raises prices.

Which of the following does not promote increased international trade and economic growth

Type your answer here... High tariffs

What is one negative effect of current patterns in global trade

Job loss and wage decreases in developed countries.

What does predatory pricing involve

A large company charging below its production cost in order to eliminate competition

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

Free-trade policies

What's 5 percent charged on profits from selling stocks

Capital gains tax

How were slaves affected by the new republic

Some northern states made slavery against the law.

What is an example of a labor law in economics

A restriction on when a union may call a strike

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