What Has Happened to Countries That Did Not Participate in the Globalization

question 23

Multiple Choice

What has happened to countries that did not participate in the globalization of the world economy?

• A) The fraction of the population living below the poverty line in these countries has decreased.
• B) These countries have been mired in a low-growth path and are experiencing high poverty rates.
• C) The socialist policies in these countries have caused a big change in the income distribution, something that globalization could not have achieved.
• D) The growth rate of these countries is stronger than the First World countries.
• E) The domestic industries in these countries have experienced robust growth.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Marginal Expenditure

The supplementary cost resulting from acquiring an extra unit of a good or service.

Economic Rent

Economic rent is the excess payment made to or received by a factor of production over and above what would have been needed to bring that factor into production.

Competitive Factor Market

A market for inputs where firms purchase resources necessary for production, characterized by many sellers and buyers.