Around the World Activity

Chapter 14(25) Macroeconomic Policy: Challenges in a Global Economy—Around the World

Read the following articles and pages in order to answer the below questions.

"Financial Markets Are Not 'Every Man For Himself'", Mercatus Center
"First Cuban Product to be Sold in U.S.: Coffee-- Sorry no Cigar", USA Today

Question

1. According to the blog post “Financial Markets Are Not 'Every Man for Himself',” what point is made about common items such as a shirt?

Markets would not be able to produce items such as standard shirts, so governments should aid markets through public policy.

Markets make it cheaper to produce goods like shirts, depressing the wages of individuals in the third world.

Markets coordinate efforts and resources from around the globe, allowing consumers to have access to goods they would not be able to enjoy in the absence of international trade.

Markets are able to produce both mundane and extraordinary items without externalities.

Question

2. How does engaging in trade improve goods and services over time?

directed by dictators

It is not possible to improve goods and services.

through specialization

government committees

Question

3. The USA Today article mentions which specific Cuban goods that are currently unavailable in the United States?

Cuban coffee, rum and cigars

Cuban tea, whiskey, and textiles

Cuban oranges, electronics, and beef

Cuban spices, medicinals, and iron

Question

4. According to the USA Today article, what is required for private farmers to export their coffee to the United States?

more workers

better land

agricultural equipment

importers

Question

5. Because of new trade regulations published in April 2016, which good was allowed to be imported into the United States?

oranges

tea

spices

coffee

Question

6. Which statement BEST reflects the effect of trade on consumers?

Trade solves the fundamental economic problem by eliminating scarcity.

Trade limits the amount of goods available for consumers.

Trade creates more options for consumers.

Trade makes goods more expensive due to transportation costs.