The Economies of the World Are Connected and Changes in One

question 155

Multiple Choice

The economies of the world are connected and changes in one economy quickly affect others. One key reason for this is that:

• A) The amount of international trade is decreasing.
• B) The amount of international trade is difficult to forecast.
• C) The amount of international trade is increasing.
• D) The amount of international trade is unstable.
• E) The amount of international trade is stable.

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Definitions:

Reciprocity Principle

A social norm suggesting that people should return the kind of behavior they receive from others, like kindness for kindness.

Bargaining

A negotiation process between two or more parties aimed at reaching a mutually acceptable agreement.

Obligation

A duty or commitment one is bound to by law, promise, or moral responsibility.

Social Loafing

A pattern in which people working together on a task generate less total effort than they would have if they had each worked alone.