In the Past There Have Been Violent Protests Against the World

question 67

Multiple Choice

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would

• A)disagree with the protesters because these practices will help make both rich and poor countries richer.
• B)disagree with the protesters about free trade,but would agree with the protesters about corporate investment.
• C)disagree with the protesters about corporate investment,but would agree with the protesters about free trade.
• D)agree with the protesters.

---

Definitions:

Long Run

A period in economics during which all inputs, including capital and labor, can be varied, allowing for full adjustment to changes.

Output

The total value of goods and services produced by an economy over a specific time period.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Corporate Bureaucracy

The administrative system governing any large institution or organization, characterized by a hierarchy of authority, rigid division of labor, and strict regulations and procedures.