1. Why is inflation less of a concern in the new world economy?
The new world economy has created a less inflation-prone environment with its twin economic and technological revolutions.
2.What is the difference between a negative feedback economy and a positive feedback economy?
Negative feedback economy is when equilibrium is restored at a lower level of demand; it is limited by short-term supply-and-demand constraints. Positive feedback economy has the capacity to become available so quickly and inexpensively that traditional supply constraints become almost unimportant.
Negative feedback economy is when equilibrium is restored at a lower level of demand; it is limited by short-term supply-and-demand constraints. Positive feedback economy has the capacity to become available so quickly and inexpensively that traditional supply constraints become almost unimportant.
3.
Give a example of how new technologies can provide developing countries
with an opportunity to catch-up with modern economies?
"In Mexico, the Monterrey Tech University has in a few years become one of the world's foremost distance learning systems, with some thirty connected campuses across Latin America offering each student access to the same star professor. In many developing countries, teacher networking over the Internet is leading to better curriculum development and rapid exchanges of best practices."
"In Mexico, the Monterrey Tech University has in a few years become one of the world's foremost distance learning systems, with some thirty connected campuses across Latin America offering each student access to the same star professor. In many developing countries, teacher networking over the Internet is leading to better curriculum development and rapid exchanges of best practices."
4. What is one prediction the author made concerning the new economy that appears to be true?
Disparities between countries have increased.
Disparities between countries have increased.
5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?
If all problem-solving is left to the market, emerging social problems will be left unattended. Also, trusting the market to find solutions to everything inevitably brings its own long-term problems as it further taxes the planet's carrying capacity beyond the already bad overload coming from the population increase.
If all problem-solving is left to the market, emerging social problems will be left unattended. Also, trusting the market to find solutions to everything inevitably brings its own long-term problems as it further taxes the planet's carrying capacity beyond the already bad overload coming from the population increase.
6.
Read and Link to a Website that provides information
about regulation and markets. Based on the information provided in the
website, what is your position on markets and regulations? Then list two
questions you have about markets and regulation.
Is a free market "free" if it's regulated?
We don't really operate under a "free-market" economy because everything is regulated. If it was truly a free market, it would be based on supply and demand solely. And, the government shouldn't be involved. We also live in a somewhat capitalist economy so having to use socialism whenever there is a crisis isn't exactly what I feel is a good idea. I guess it's because I believe in capitalism and wish there was a true free-market.
1. How can it be free if there are regulations?
2. Can we say the market we have now is really doing an exceptional job?
8. What is the cause of the crisis of complexity in the new world economy?
"...The two forces of population increase and the new world economy spew unprecedented complexity in economic, social, political, and environmental matters."
Quote:
"If we trust the market to solve all our problems, we'll end up with scores of unnecessary social stresses over the next twenty years--and a lot of protestors in the street."
Response:
I don't believe we should trust the market to solve ALL of our problems, but I do believe it having the government involved causes a few problems. And, we already have protestors in the street and unnecessary social stresses due to the market and many other aspects.
We call what we have a free-market, but we actually have what is called managed-economy.
Sources:
Rischard, J. F. (2002). High noon: 20 global problems, 20 years to solve them. (pp. 25-39). New York, New York: Basic Books.
"...The two forces of population increase and the new world economy spew unprecedented complexity in economic, social, political, and environmental matters."
Quote:
"If we trust the market to solve all our problems, we'll end up with scores of unnecessary social stresses over the next twenty years--and a lot of protestors in the street."
Response:
I don't believe we should trust the market to solve ALL of our problems, but I do believe it having the government involved causes a few problems. And, we already have protestors in the street and unnecessary social stresses due to the market and many other aspects.
We call what we have a free-market, but we actually have what is called managed-economy.
Sources:
Rischard, J. F. (2002). High noon: 20 global problems, 20 years to solve them. (pp. 25-39). New York, New York: Basic Books.
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