Which of the Following Statements Is Incorrect

question 50

Multiple Choice

Which of the following statements is incorrect?

• A) Globalization has resulted in faster economic growth and reductions in poverty.
• B) To avoid globalization in order to avoid financial crises is to remain in poverty as the rest of the world grows richer.
• C) A closed economy can follow very bad economic policies for a long time.
• D) Globalization allows the rest of the world to respond to bad economic policies in a way that highlights the bad policy.
• E) A country with sound economic policy and good investment opportunities is rewarded with large flows of savings from the rest of the world to increase the cost of developing the local economy.

---

Definitions:

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Costly Temptations

Unnecessary expenses or indulgences that can detract from long-term financial goals and stability.

Altruistic Behaviors

Acts motivated by the intention to help or benefit another individual or group of individuals without expectation of benefit for oneself.

Impulse Buying

The act of purchasing items on the spur of the moment without premeditation, often triggered by emotions or external stimuli.