Recently There Have Been Violent Protests Against the World Bank

question 166

Multiple Choice

Recently there have been violent protests against the World Bank and the World Trade Organization. The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contend that these practices make rich countries richer and poor countries poorer. How would economists feel about these protesters' views?

• A) They would disagree with the protesters because these practices will help make both rich and poor countries richer.
• B) They would disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
• C) They would disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
• D) They would disagree with the protesters about free trade and corporations, but would agree that these institutions are not necessary.

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Definitions:

Proportional Usage

Proportional usage refers to the allocation or consumption of resources, assets, or services in a manner that is in accordance with their relative proportion or share.

Algebraic Equation

A mathematical statement that shows the equality of two expressions, usually involving variables and constants, related by operations like addition, subtraction, multiplication, and division.

Sequential Method

The sequential method is an approach to allocating service department costs to production departments in a linear fashion, based on a predetermined order or sequence.

Step-Up Method

An allocation method used in cost accounting to allocate support department costs to other departments incrementally.