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:

Total Assets

The sum of all current and non-current assets owned by a company.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting a company’s profitability.

Net Income

The remaining earnings of a corporation after deducting all expenditures and tax obligations from its revenue.

Net Sales

The revenue generated from sales after deducting returns, allowances for damaged or missing goods, and discounts.