According to World-Systems Theory, Why Must the Global Economic System

question 12

Multiple Choice

According to world-systems theory, why must the global economic system be approached as a single capitalist unit?

• A) The current system of world capitalism is not a collection of independent countries.
• B) The current system of world capitalism has reached the limits of its growth as individual nations.
• C) Such an analysis allows for a clearer calculation of Gini coefficients.
• D) Poverty in poor nations cannot be solved except by the united effort of all capitalist countries.

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Definitions:

Inelastic Portion

A segment of the demand curve where consumers are relatively unresponsive to changes in price, meaning demand does not significantly decrease as the price increases.

Revenue Maximizer

Describes a strategy or approach focused on increasing the total revenue received, regardless of profits or costs.

Profit Maximizer

A strategy or process employed by businesses to increase their net profits to the highest possible level given their resources, constraints, and market conditions.

U-Shaped Average

This term seems unclear; possibly referring to the 'U-shaped' curve of the average cost, which decreases, reaches a minimum, and then increases with production volume.