Problem 8
Analyzing Cause and Effect What effect might mass media have on the erosion of traditional economies in today's world?
Problem 8
Since the fall of communism in the 1990 s, countries in Eastern Europe and the former Soviet Union have abandoned command economies in favor of market economies. How do you think economic life in these countries has changed?
Problem 8
How do command societies address the problem of scarcity? Illustrate your answer with examples.
Problem 9
How do you think the disadvantages of a market economy can be minimized while its advantages continue to operate?
Problem 9
Many nations import U.S. capital and technology by purchasing equipment that U.S. businesses manufacture. Explain how this development can benefit the American people.
Problem 9
Generalizing from Economic Information You have the following information about an economy: 1 ) People have little choice in the kinds of jobs they do. 2) Producers are not free to use resources as they wish. 3) People have little, if any, say in how the basic economic questions are answered. What kind of economy might this be? Explain your answer.
Problem 10
How do market forces operate in the global economy? Illustrate your answer with examples.
Problem 10
Adam Smith used the "invisible hand" as a metaphor for the forces that balance a free market. What might be a good metaphor for the forces at work in a command economy? Explain your answer.
Problem 10
On August \(29,2005,\) Hurricane Katrina devastated regions of the Gulf Coast states of Louisiana, Mississippi, and Alabama. Most of New Orleans, for example, was flooded after the levees protecting the city broke. How would a pure market economy respond to the devastation and loss?
