macro 1.3

Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States? The U.S. contains more of the division of labor inside its borders, while the other countries need to trade across borders in order to take advantage of division of labor, specialization, and economies of scale. The U.S. is more affected by globalization than the other countries. The share of U.S. exports in proportion to the U.S. economy is well above the global average, while the share of exports in the other countries is well below the global average. The U.S. economy is heavily regulated, while the other countries have free economies.

The U.S. contains more of the division of labor inside its borders, while the other countries need to trade across borders in order to take advantage of division of labor, specialization, and economies of scale. -Interestingly, the share of U.S. exports in proportion to the U.S. economy is well below the global average, in part because large economies like the United States can contain more of the division of labor inside their national borders. However, smaller economies like Belgium, Korea, and Canada need to trade across their borders with other countries to take full advantage of division of labor, specialization, and economies of scale.

Select all of the following descriptions that are true about market economies. The government decides what methods of production will be used and how much workers will be paid. A market economy is based on private enterprise. Economic effort is devoted to goals passed down from a ruler or ruling class. A person's income is based on his or her ability to convert resources (especially labor) into something society values.

A market economy is based on private enterprise. A person's income is based on his or her ability to convert resources (especially labor) into something society values. -Market economies are based on private enterprise: the private individuals or groups of private individuals own and operate the means of production (resources and businesses). In a market economy a person's income is based on his or her ability to convert resources (especially labor) into something society values. The more society values the person's output, the higher the income (think Lady Gaga or LeBron James).

All of the following are accurate descriptions of traditional economies except: Most families are farmers who grow the crops they have always grown using traditional methods. A traditional economy is the oldest economic system. Occupations stay in the family. A person's income is based on his or her ability to convert resources (especially labor) into something society values, so there is significant economic progress and development.

A person's income is based on his or her ability to convert resources (especially labor) into something society values, so there is significant economic progress and development. -In a market economy a person's income is based on his or her ability to convert resources (especially labor) into something that society values. A traditional economy is the oldest economic system and is used in parts of Asia, Africa, and South America. Traditional economies organize their economic affairs the way they have always done (i.e., tradition). Occupations stay in the family. Most families are farmers who grow the crops using traditional methods. What you produce is what you consume. Because tradition drives the way of life, there is little economic progress or development.

Which of the following describe benefits of international trade? Worldwide production increases. The worldwide economy improves. Worldwide standards of living are higher. All of the above.

All of the above. -International trade and specialization increase worldwide production, improve the world economy, and improve standards of living all over the globe.

Which of the following best describes the term command economy? An economy, typically agricultural, where things are done in the same way as they have always been done. An economy where economic decisions are passed down from government authority and where resources are owned by the government. A system where the means of production are owned and operated by private individuals or groups of private individuals. A market where the buyers and sellers make transactions in violation of one or more government regulations.

An economy where economic decisions are passed down from government authority and where resources are owned by the government. -In a command economy, the government decides what goods and services will be produced and what prices it will charge for them. The government decides what methods of production to use and sets wages for workers. The government provides many necessities like healthcare and education for free.

True or false? In underground economies, governments are heavily involved in making decisions on the goods sold and the prices set.

False -False. The government heavily regulates decisions of what to produce and prices to charge. Heavily-regulated economies often have underground economies (or black markets), which are markets where the buyers and sellers make transactions without the government's approval. In these black markets, the buyers and sellers choose the goods and prices in their transactions.

True or false?In command economies, decision-making is decentralized.

False -In a command economy, economic effort is devoted to goals passed down from a ruler or ruling class, thus, decision-making is centralized. In market economies decision-making is decentralized.

True or false? The export/GDP ratio has generally declined worldwide in recent decades.

False -In recent decades, the export/GDP ratio has generally risen, both worldwide and for the U.S. economy. Interestingly, the share of U.S. exports in proportion to the U.S. economy is well below the global average, in part because large economies like the United States can contain more of the division of labor inside their national borders. However, smaller economies like Belgium, Korea, and Canada need to trade across their borders with other countries to take full advantage of division of labor, specialization, and economies of scale. In this sense, the enormous U.S. economy is less affected by globalization than most other countries.

_______________ is the expanding cultural, political, and economic connections between people around the world. Democracy Private enterprise Global banking Globalization

Globalization -Recent decades have seen a trend toward globalization, which is the expanding cultural, political, and economic connections between people around the world. One measure of this is the increased buying and selling of goods, services, and assets across national borders—in other words, international trade and financial capital flows.

command economy versus market economy

In a command economy, economic effort is devoted to goals passed down from a ruler or ruling class, thus, decision-making is centralized. In market economies decision-making is decentralized.

Which of the following are accurate statements regarding globalization? International agreements and treaties between countries have contributed to globalization. One way to measure globalization is examining the amount of imports and exports. Higher income countries have experienced a decline in globalization in recent decades. Smaller economies like Belgium, Korea, and Pakistan are better equipped to take full advantage of division of labor, specialization, and economies of scale within their own borders.

International agreements and treaties between countries have contributed to globalization. One way to measure globalization is examining the amount of imports and exports. -Recent decades have seen a trend toward globalization, which is the expanding cultural, political, and economic connections between people around the world. One measure of this is the increased buying and selling of goods, services, and assets across national borders—in other words, international trade and financial capital flows. Another measure is that international agreements and treaties between countries have encouraged greater trade.

True or false?In market economies, economic decisions are determined by market forces.

True -In market economies, economic decisions are determined by market forces. In a market economy, decision-making is decentralized. Market economies are based on private enterprise: the private individuals or groups of private individuals own and operate the means of production (resources and businesses). Businesses supply goods and services based on demand. (In a command economy, by contrast, the government owns resources and businesses.) Supply of goods and services depends on what the demands are. A person's income is based on his or her ability to convert resources (especially labor) into something that society values. The more society values the person's output, the higher the income (think Lady Gaga or LeBron James). In this scenario, market forces, not governments, determine economic decisions.

True or false? Globalization is the trend in which buying and selling in markets has increasingly crossed national borders.

True -Recent decades have seen a trend toward globalization, which is the expanding cultural, political, and economic connections between people around the world. One measure of this is the increased buying and selling of goods, services, and assets across national borders—in other words, international trade and financial capital flows.

True or false? The U.S. economy is less affected by globalization than most other countries relative to its GDP.

True -While the US has large levels of exports and imports in a nominal sense, they are often smaller than those of other countries when considered as proportion of GDP. The vast array of geographic conditions and natural resources available within the US allow it to be self-sufficient to a greater extent than many of the smaller countries of the world.

True or false?The U.S. economy is less affected by globalization than most other countries relative to its GDP.

True -While the US has large levels of exports and imports in a nominal sense, they are often smaller than those of other countries when considered as proportion of GDP. The vast array of geographic conditions and natural resources available within the US allow it to be self-sufficient to a greater extent than many of the smaller countries of the world.

What is the best definition of an underground economy? an economy where the government decides what methods of production will be used and how much workers will be paid the oldest economic system a market where the buyers and sellers make transactions without the government's approval a market where transactions take place with the government's support

a market where the buyers and sellers make transactions without the government's approval -Heavily regulated economies often have underground economies (or black markets), which are markets where the buyers and sellers make transactions without the government's approval.

The trend toward globalization encompasses which type(s) of connections between people around the world? cultural economic political all of the above

all of the above -Recent decades have seen a trend toward globalization, which is the expanding cultural, political, and economic connections between people around the world. -While international trade is a crucial component of globalization, the phenomenon encompasses far more than just economic exchange. Expanding cultural, political, social, and technological connections are important too.

Businesses typically support globalization because globalization _________________________. allows for the creation of monopolies allows for greater control over prices allows access to more markets leads to easier management

allows access to more markets -Globalization implies that firms get unrestricted or less restricted access to global markets, allowing greater ability to buy and sell.

globalization

recent decades have seen a trend toward globalization, which is the expanding cultural, political, and economic connections between people around the world. One measure of this is the increased buying and selling of goods, services, and assets across national borders—in other words, international trade and financial capital flows.

Which type of an economy, typically agricultural, can be described as where things are done in the same way as they have always been done? traditional economy command economy market economy underground economy

traditional economy -Traditional economies organize their economic affairs the way they have always done (i.e., tradition). Occupations stay in the family. Most families are farmers who grow the crops using traditional methods. What you produce is what you consume. Because tradition drives the way of life, there is little economic progress or development.