In economics, a decline in output of less than __________ is referred to as a recession; a deeper contraction is called a depression.
a. 5 percent
b. 10 percent
c. 20 percent
d. 25 percent
An important conclusion in this chapter focuses on the changes in power and control by the state. This conclusion can be summed up as
a. the state's loss of control over globalization.
b. the regaining of control by the state over globalization.
c. the ability of the state to assert itself through market barriers.
d. an uneasy truce between the forces of globalization and the state.
According to the text, under globalization comparative advantage is based not in natural resource endowments but in
a. the strength of the military.
b. the combined abilities of states working within international financial institutions.
c. the accumulation of large amounts of capital.
d. factors of technology, education, and network effects.
In the past, governments had greater control over currency prices because
a. governments were stronger and more centralized.
b. governments controlled more currency than private actors.
c. the cost of exchanging currency was higher in the past.
d. governments had a monopolistic control over currency markets.
Which of the following statements is true?
a. For most countries, foreign trade is growing much faster than the domestic economy.
b. The portion of each country's economy that is either sold as exports or bought as imports is decreasing.
c. Domestic economies in most of the world are growing faster than foreign trade.
d. Trade is the only form of globalization.
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