Problem 7
How might the bailout by an international agency of a nation that has defaulted on foreign debt lead to more corruption in the future?
Problem 7
Compare and contrast three characteristics of a developed nation and a less developed nation.
Problem 7
Comparing and Contrasting Economic Information What are three key differences between the economic transitions of the former Soviet bloc and China?
Problem 8
One measure of economic development is the extent to which a nation buys big- ticket consumer goods. Does the production of those goods also indicate a level of economic development? Explain your answer.
Problem 8
Many economists believe that a country that is rich in a particular natural resource may actually be at a developmental disadvantage. They point out that nations such as these tend to put all of their resources into this one industry. Write a paragraph about how you, as leader of a nation, would use the large income from your nation's natural resource to take other avenues to developing your economy.
Problem 8
Making Inferences and Drawing Conclusions While China has welcomed western economic principles, it has continued to come down hard on political freedoms. For example, Deng crushed protesters in Tiananmen Square in \(1989 .\) Why do you think capitalism can grow in China under a restrictive government when in the former Soviet bloc it went hand in hand with political freedom?
Problem 9
Applying Economic Concepts Explain how life in the former Soviet bloc changed for each of the following during a transition to a market economy. a. factory worker b. farmer c. consumer d. factory manager
Problem 9
Some economists argue that GDP does not give an accurate picture of a nation's well-being. They point out that GDP reflects economic activity that pollutes the environment and depletes resources as well as economic activity that counteracts the pollution. In other words, it shows both the polluting enterprises and the cost of cleaning up the pollution on the plus side of the balance sheet. Write a paragraph speculating on how to revise GDP figures to reflect this concern.
Problem 10
Challenge Do businesses from foreign nations with strong antipollution laws have a responsibility to voluntarily limit pollution when located in a less developed country with less developed pollution laws? Give reasons for your answer.
