MRU7.1: I, Rose

Q3: How many people know the full story of how a Kenyan rose ends up in a Chicago flower shop on Valentine's Day? - No one, since all roses sold in the United States are grown domestically. - Most of the people involved in any part of the global market for roses. - Several people who work in the office of the Global Rose Czar. - No one, the story is too complex.

A: No one, the story is too complex.

Q9: On Valentine's Day the demand for roses and chocolate increases. The price of roses, however, tends to increase by more than the price of chocolate on that day. Why? - Fewer people want chocolate than roses. - Chocolate is grown closer to the United States, therefore costs are lower. - Roses are perishable and chocolate can be stored. - Roses are lighter so they are cheaper to ship.

A: Roses are perishable and chocolate can be stored.

Q5: The price system is able to coordinate activity in many places around the world to deliver goods such as Valentine's Day roses, when each person: - acts in his or her own self-interest. - is well-informed about the preferences and technologies that exist in every other part of the world. - acts purely in the interest of society. - follows the directives of the Global Rose Czar.

A: acts in his or her own self-interest.

Q10: Why would a centrally planned global rose market likely fail? - because agricultural markets are too vulnerable to disturbances such as those caused by weather changes - because differing laws among countries make international trade of this sort too complicated - because all markets eventually fail - because central planners would be unlikely to have all the information necessary about all of the individuals, countries, and linked markets involved

A: because central planners would be unlikely to have all the information necessary about all of the individuals, countries, and linked markets involved

Q4: Thanks to the price system, local interests and local knowledge are: - overshadowed by global interest and global knowledge. - independent from other local interest and local knowledge in the market. - coordinated with other local interests and local knowledge across the global market. - in direct conflict with all other local interest and local knowledge.

A: coordinated with other local interests and local knowledge across the global market.

Q6: To an economist, the price system's ability to coordinate massive amounts of activity all over the world is: - well-organized and logical. - manipulative and concerning. - obvious and uninteresting. - mysterious and inspiring.

A: mysterious and inspiring.

Q7: Which part of the market for Valentine's Day roses was NOT mentioned in the video's discussion of the invisible hand? - retailers - shippers - auctioneers - regulators

A: r~egulators

Q2: There is a great amount of global cooperation in the market for roses thanks to each of the following, EXCEPT: - the invisible hand. - the incentives created by prices. - the self-interest of each individual involved. - the Global Rose Czar who coordinates global rose activity.

A: the Global Rose Czar who coordinates global rose activity.

Q1: Valentine's Day roses provide an illustration of the concept that "Markets Link the World," because: - the market for roses on Valentine's Day depends on the cooperation of many individuals in different countries around the world. - roses grown in the United States for Valentine's Day are exported all over the world. - every developed country in the world has its own independent market for growing, shipping, and selling roses. - every year more and more countries take part in the Western tradition of giving roses on Valentine's Day.

A: the market for roses on Valentine's Day depends on the cooperation of many individuals in different countries around the world.

Q8: Millions more roses are demanded on Valentine's Day than on any other day. How do rose farmers in Kenya know to produce enough roses? - from requests made by U.S. flower retailers - by command of the Global Rose Czar - from their understanding of Valentine's Day - through the price system

A: through the price system