Eugenia, a Mexican Single Mother of Three, Goes to Work

question 84

Multiple Choice

Eugenia, a Mexican single mother of three, goes to work each morning at a local factory, working all day in poor conditions. However, she does not make enough money to pay all of her family's expenses and her eldest son must also work to make ends meet. Eugenia's daily life is an example of which negative aspect of globalization outlined in the text?

• A)family employment
• B)exploitation of workers
• C) corporate advantage
• D) economic abuse

---

Definitions:

Substitution Effect

The substitution effect occurs when consumers change their consumption of goods in response to changes in relative prices, substituting cheaper goods for more expensive ones.

Quantity Demanded

Quantity demanded refers to the amount of a good or service that consumers are willing and able to purchase at a given price.

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their utility, given prices and their budget constraint.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.