Contemporary Economic Issues
Midterm Exam
Course Introduction
This course explores the major economic issues shaping today's world, offering students insight into contemporary topics such as globalization, income inequality, environmental sustainability, innovation, financial crises, international trade, labor markets, and government policy responses. By examining real-world case studies and current events, students develop critical thinking skills and learn to analyze economic trends, evaluate policy alternatives, and understand the impact of economic decisions on society. The course emphasizes practical application of economic theory to help students interpret rapidly changing global and local economic landscapes.
Recommended Textbook
Economics 5th Edition by R. Glenn Hubbard
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Page 2
Chapter 1: Economics: Foundations and Models
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Sample Questions
Q1) Economics does not study correct or incorrect behaviors, but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits.
A) equitably
B) rationally
C) emotionally
D) selfishly
Answer: B
Q2) In economics, an organization that produces a good or service is called a A) firm.
B) company.
C) business.
D) All of the above are correct.
Answer: D
Q3) The term "market" refers only to trading arrangements that have been approved by the government.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Trade-Offs, Comparative Advantage, and the Market System
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Sample Questions
Q1) Consider a country that produces only two goods: parrots and iguanas. Suppose it is impossible for this country to increase its production of parrots without producing fewer iguanas. In this case, its current output combination is efficient.
A)True
B)False
Answer: True
Q2) All of the following are examples of spending on factors of production in the circular flow model except
A) Bima hires two students to work at his ice-cream store.
B) "Get Fit Together" purchases 3 new treadmills for its gym.
C) Iris buys a dozen roses for her mothers birthday.
D) The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.
Answer: C
Q3) The payment received by suppliers of entrepreneurial skills is called interest.
A)True
B)False
Answer: False
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Chapter 3: Where Prices Come From: the Interaction of
Demand and Supply
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Q1) An increase in the quantity of a product supplied is caused by an increase in the price of the product.
A)True
B)False
Answer: True
Q2) Refer to Figure 3-2. An increase in the expected future price of the product would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: D
Q3) When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect.
A) substitution; income
B) normal; inferior
C) substitute; complement;
D) supply; demand
Answer: A
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Chapter 4: Economic Efficiency, Government Price Setting, and Taxes
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Sample Questions
Q1) Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays.
A)True
B)False
Q2) Refer to Table 4-8. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $9.00; Q* = 370,000
B) W* = $8.50; Q* = 380,000
C) W* = $8.50; Q* = 360,000
D) W* = $9.00; Q* = 740,000
Q3) If the government implements a price ceiling on insulin, this will
A) increase the price consumers will pay for insulin.
B) decrease the quantity of insulin the manufacturers will be willing to supply.
C) have to be set above the market equilibrium price to be effective.
D) encourage manufacturers to produce and sell more of insulin to increase their profits.
Q4) What is producer surplus? What does producer surplus measure?
Q5) If marginal benefit is less than marginal cost, output is inefficiently high.
A)True
B)False
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Chapter 5: Externalities, Environmental Policy, and Public Goods
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Q1) Refer to Figure 5-13. The efficient equilibrium quantity of gasoline is ________ million gallons per month.
A) 20
B) 32
C) 48
D) 56
Q2) Private producers have no incentive to provide public goods because
A) the government subsidy granted is usually insufficient to enable private producers to make a profit.
B) production of huge quantities of public goods entails huge fixed costs.
C) they cannot avoid the tragedy of the commons.
D) once produced, it will not be possible to exclude those who do not pay for the good.
Q3) In economics, the optimal level of pollution is the level for which the net benefit from reducing the pollution is the greatest.
A)True
B)False
Q4) Explain how mandatory seat belt laws may reduce the negative externalities of risky behavior.
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Chapter 6: Elasticity: the Responsiveness of Demand and Supply
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Q1) If the demand for iPods is price elastic, then
A) the percentage change in quantity demanded is greater than the percentage change in price (in absolute value).
B) the percentage change in quantity demanded is less than the percentage change in price (in absolute value).
C) the percentage change in quantity demanded is equal to the percentage change in price.
D) quantity demanded is not responsive to changes in price.
Q2) If the quantity supplied of walkie-talkies increases by 5 percent when prices increase by 12 percent, then
A) the supply of walkie-talkies is inelastic.
B) the supply of walkie-talkies is elastic.
C) the walkie-talkie supply curve will shift to the right.
D) the walkie-talkie supply curve will shift to the left.
Q3) Inelastic supply occurs whenever the elasticity of supply value is
A) negative and <-1.
B) any positive number.
C) positive and >1.
D) positive and <1.
Page 8
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Chapter 7: The Economics of Health Care
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Sample Questions
Q1) The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.
A)True
B)False
Q2) Refer to Figure 7-4. With insurance and a third-party payer system, what price do doctors receive for medical services?
A) $25
B) $40
C) $55
D) >$55
Q3) Health insurance typically pays for most preventive care procedures in all of the following countries except A) Canada.
B) Japan.
C) the United Kingdom.
D) the United States.
Q4) What are the main sources of health insurance in the United States?
Q5) Briefly describe the types of health care systems in Canada, Japan, and the United Kingdom.
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Chapter 8: Firms, the Stock Market, and Corporate Governance
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Sample Questions
Q1) Organizing a successful firm in a market economy has become ________ over the last century.
A) legally impossible
B) politically impossible
C) less difficult
D) more difficult
Q2) How does the owner of a sole proprietorship relate to the business?
A) The owner and the business are separate legal entities.
B) The owner and the business are not separate legal entities.
C) The assets of the owner are considered separate from the asset of the business.
D) None of these describe the legal relationship of the owner to the business.
Q3) In addition to requiring that CEOs personally certify the accuracy of financial statements, the Sarbanes-Oxley Act of 2002 also requires that
A) CEOs conduct audits of their corporations themselves.
B) firms raise funds for expansion through the sale of bonds only, not stocks.
C) auditors disclose any potential conflicts of interest.
D) corporations issue financial statements monthly rather than quarterly.
Q4) What is a firm's balance sheet?
Q5) How does the principal-agent problem extend to managers and employees?
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Chapter 9: Comparative Advantage and the Gains From International Trade
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Sample Questions
Q1) Economists believe the most persuasive argument for protectionism is to A) save jobs.
B) protect high wages.
C) protect national security.
D) protect infant industries.
Q2) Refer to Figure 9-1. Under autarky, the deadweight loss is
A) $0.
B) $15.
C) $30.
D) $40.
Q3) Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries. This protectionism will cause the greatest harm to
A) Canadian manufacturers.
B) the Canadian government.
C) manufacturers who export to Canada.
D) Canadian consumers.
Q4) a. What is the World Trade Organization?
b. When was it established?
c. How many countries are members of the World Trade Organization?
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Chapter 10: Consumer Choice and Behavioral Economics
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Q1) Which of the following is used to explain why a consumer's willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases?
A) network externalities
B) market failure
C) diminishing marginal utility
D) the income effect of a price change
Q2) Consider a downward-sloping demand curve. When the price of an inferior good increases, the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions, and quantity demanded increases.
D) work in opposite directions, and quantity demanded decreases.
Q3) Refer to Figure 10-6. Which diagram demonstrates an increase in total utility following a decrease in the price of popcorn?
A) the movement from d to e in Panel A
B) the movement from f to g in Panel B
C) the movement from h to k in Panel C
D) none of the above
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Page 12
Chapter 11: Technology, Production, and Costs
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Sample Questions
Q1) If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output?
A) $65
B) $50
C) $15
D) It is impossible to determine without additional information.
Q2) Which of the following statements is true?
A) An explicit cost is an actual cost; an implicit cost is a theoretical cost.
B) Economic costs include both explicit costs and implicit costs.
C) An explicit cost is more important, dollar for dollar, than an implicit cost.
D) Explicit costs are accounting costs, not economic costs; implicit costs are economic costs, not accounting costs.
Q3) The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1. A)True B)False
Q4) Describe how Wal-Mart has used positive technological change to manage its inventory.
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Page 13
Chapter 12: Firms in Perfectly Competitive Markets
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Q1) Refer to Figure 12-14. Consider a typical firm in a perfectly competitive industry which is incurring short-run losses. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
Q2) When plasma television sets were first introduced prices were high and few firms were in the market. Later, economic profits attracted new firms and the price of plasma televisions fell. This example illustrates
A) a decreasing-cost industry.
B) that consumers receive this new technology "free of charge" in the sense that they only have to pay a price for plasma televisions equal to the lowest production cost.
C) an industry with a low minimum efficient scale.
D) how fickle consumer demands are.
Q3) Why are individual buyers and sellers in perfect competition called price takers?
Q4) What is meant by the term "long-run competitive equilibrium"?
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Chapter 13: Monopolistic Competition: the Competitive
Model in a More Realistic Setting
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Q1) Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A) Panel A
B) Panel B
C) Panel C
D) Panel A and Panel B
Q2) Refer to Figure 13-10 to answer the following questions.
a. What is the profit-maximizing output level?
b. What is the profit-maximizing price?
c. At the profit-maximizing output level, how much profit will be realized?
d. Does this graph most likely represent the long run or the short run? Why?
Q3) Refer to Figure 13-11. The diagram depicts a firm
A) in a constant cost industry.
B) in an increasing cost industry.
C) in long-run equilibrium.
D) that is making short-run losses.
Q4) What effect does the entry of new firms in a monopolistically competitive market have on the economic profits of existing firms in the market? How might existing firms attempt to counteract this effect?
Page 15
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Chapter 14: Oligopoly: Firms in Less Competitive Markets
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Q1) A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is
A) "follow the leader" pricing.
B) price leadership.
C) retaliation pricing.
D) "tit-for-tat" pricing.
Q2) Which of the following is not a characteristic of oligopoly?
A) the ability to influence price
B) a small number of firms
C) low barriers to entry
D) interdependent firms
Q3) Refer to Table 14-8. If the firms cooperate, what prices will they select?
A) Both firms will select a low price.
B) Brawny Juice will select a high price, Power Fuel a low price.
C) Both firms will select a high price.
D) Brawny Juice will select a low price, Power Fuel a high price.
Q4) Explain why OPEC is caught in a prisoner's dilemma?
Q5) A subgame is a simultaneous game embedded in a sequential game.
A)True
B)False
Page 16
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Chapter 15: Monopoly and Antitrust Policy
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Q1) For a natural monopoly to exist,
A) a firm must continually buy up its rivals.
B) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level.
C) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
D) a firm must have a government-imposed barrier.
Q2) Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell and a Kentucky Fried Chicken. Using a broad definition of a monopoly, Joe has a monopoly.
A)True
B)False
Q3) Refer to Figure 15-10. What is the area that represents consumer surplus under a monopoly?
A) the triangle P0P1F
B) the triangle P0P2E
C) the trapezium P1P2EF
D) the rectangle P1P3HF
Q4) Explain why the monopolist has no supply curve?
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Chapter 16: Pricing Strategy
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Q1) According to the law of one price, identical products should sell for the same price everywhere if
A) consumers have knowledge of the prices charged for products in different markets.
B) transactions costs are zero.
C) firms can prevent consumers from engaging in arbitrage.
D) there are no tariffs or other restrictions on imports or exports.
Q2) In a perfectly competitive market, in the long run, arbitrage profits will be bid away. A)True
B)False
Q3) Successful price discrimination cannot take place if
A) the market is perfectly competitive.
B) the market can be segmented into different buyer groups.
C) customers are not able to resell the product.
D) the demand curve facing the firm is downward sloping.
Q4) Many book publishers use cost-plus pricing to establish prices for some of their books. Would you expect a publishing company to use a strict cost-plus pricing system for all its books? How might you determine if a publishing company actually does use cost-plus pricing for all its books?
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Page 18
Chapter 17: The Markets for Labor and Other Factors of Production
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Q1) Refer to Figure 17-2. If the wage rate is $20, how many workers should Becca hire?
A) 6
B) 5
C) 4
D) 3
Q2) The equilibrium wage and quantity of labor in the market for skilled workers is determined by
A) the strength of labor unions.
B) the monopsony power of firms.
C) the demand and supply of labor.
D) the market value created by the output of these skilled workers.
Q3) Marginal revenue product for a perfectly competitive seller is equal to
A) the output price multiplied by the total product of labor.
B) the output price multiplied by the number workers hired.
C) the change in total revenue that results from hiring another worker.
D) the marginal cost of production.
Q4) The marginal product of labor curve is the demand curve for labor.
A)True
B)False
19
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Chapter 18: Public Choice, Taxes, and the Distribution of Income
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Q1) If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps,
A) the poverty rate would be lower.
B) poverty would be eliminated.
C) income inequality would be greater.
D) the poverty rate would be overstated.
Q2) The proposition that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle is called
A) the mean (or average) voter theorem.
B) the voting paradox.
C) the Arrow impossibility theorem.
D) the median voter theorem.
Q3) Exempting food purchases from sales tax is consistent with the ability-to-pay principle, although not necessarily consistent with vertical equity.
A)True
B)False
Q4) What is the relationship between market failure and government failure?
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Chapter 19: GDP: Measuring Total Production and Income
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Q1) The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.
A) CPI; real GDP; nominal GDP
B) GDP deflator; real GDP; nominal GDP
C) GDP deflator; nominal GDP; real GDP
D) PPI; nominal GDP; real GDP
E) PPI; real GDP; nominal GDP
Q2) Refer to Table 19-19. Given the information above, calculate the GDP deflator in 2013.
A) 114
B) 105
C) 95
D) 87
Q3) Nominal GDP measures the value of all final goods and services at base-year prices.
A)True
B)False
Q4) Describe briefly how the final value of an iPhone must be equal to the sum of incomes generated by the production of the iPhone.
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Chapter 20: Unemployment and Inflation
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Q1) Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the unemployment rate to decrease.
B) the labor force participation rate to decrease.
C) the number of discouraged workers to increase.
D) no change in the unemployment rate.
Q2) Structural unemployment is the result of
A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
B) the search process of matching workers with jobs.
C) the ups and downs in inflation.
D) a slowdown in the economy.
Q3) Refer to Table 20-19. Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?
A) 15%
B) 4.4%
C) -1.5%
D) -4.8%
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Page 22
Chapter 21: Economic Growth, the Financial System, and Business Cycles
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Q1) Which of the following explains the cause of the change in the unemployment rate at the end of a recession?
A) Firms are hesitant to rehire laid off workers, as they continue to operate below capacity.
B) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
C) Discouraged workers return to the labor force, and this makes the unemployment rate fall.
D) Discouraged workers leave the labor force, and this makes the unemployment rate rise.
Q2) Actual real GDP will be above potential GDP if
A) firms are producing below capacity.
B) firms are producing at capacity.
C) firms are producing above capacity.
D) inflation is rising.
Q3) Long-run economic growth requires all of the following except A) technological change.
B) increases in capital per hour worked.
C) government provision of secure property rights.
D) political instability.
Page 23
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Chapter 22: Long-Run Economic Growth: Sources and Policies
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Q1) Globalization is positively associated with A) poverty.
B) declining rates of investment.
C) declining standards of living.
D) economic growth.
Q2) If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%, which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.
A) Real GDP per capita in the United States will always be 1.9% higher than real GDP per capital in Bolivia.
B) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
C) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time.
D) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion.
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Page 24
Chapter 23: Aggregate Expenditure and Output in the Short Run
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Q1) Refer to Table 23-15. Using the table above, answer the following questions. The numbers in the table are in billions of dollars.
a. What is the equilibrium level of real GDP?
b. What is the MPC?
c. If investment spending declines by $10 billion, what will happen to equilibrium GDP?
Q2) If consumption is defined as C = 2,400 + 0.9Y, then the marginal propensity to consume is 0.9.
A)True
B)False
Q3) When Javier's income increases by $5,000, he spends an additional $3,750 dollars. This implies that his marginal propensity to consume is 0.75.
A)True
B)False
Q4) Refer to Table 23-2. Using the table above, compute aggregate expenditure and identify the macroeconomic equilibrium.
Q5) Given Table 23-6 below, fill in the values for saving. Assume taxes = $800.
Q6) What is the main reason for changes in GDP in the short run?
Page 25
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Chapter 24: Aggregate Demand and Aggregate Supply Analysis
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Q1) The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age. What did this technological change do the short-run supply curve?
A) It shifted the short-run aggregate supply curve to the left.
B) It shifted the short-run aggregate supply curve to the right.
C) It moved the economy up along a stationary short-run aggregate supply curve.
D) It moved the economy down along a stationary short-run aggregate supply curve.
Q2) German luxury car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected Germany's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right.
B) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve.
C) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve.
D) The aggregate demand curve would have shifted to the left.
Q3) Explain how the aggregate demand and aggregate supply model can be made more dynamic.
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Chapter 25: Money, Banks, and the Federal Reserve System
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Q1) The largest proportion of M1 is made up of A) currency.
B) checking account deposits.
C) traveler's checks.
D) savings account deposits.
E) time deposits.
Q2) If bankers become more uncertain regarding future deposits and withdrawals and choose to hold more excess reserves against deposits, the money multiplier will increase.
A)True
B)False
Q3) If the Fed buys U.S. Treasury securities, then this A) increases reserves, encourages banks to make more loans, and increases the money supply.
B) decreases reserves, causes banks to reduce their loans, and decreases the money supply.
C) decreases reserves, causes banks to reduce their loans, and increases the money supply.
D) increases reserves, causes banks to reduce their loans, and increases the money supply.
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Chapter 26: Monetary Policy
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Q1) Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level.
Q2) Federal Reserve Board Chairmen Paul Volcker, Alan Greenspan, and Ben Bernanke all have focused on which of the following as their main goal of monetary policy?
A) high employment
B) price stability
C) economic growth
D) stability of financial markets
Q3) Write out the expression for the Taylor rule. Use the Taylor rule to explain how a decline in real GDP below potential GDP will affect the Federal Reserve's target for the federal funds rate.
Q4) For purposes of monetary policy, the Federal Reserve has targeted the interest rate known as the
A) federal funds rate.
B) Treasury bill rate.
C) discount rate.
D) prime rate.
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Chapter 27: Fiscal Policy
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Sample Questions
Q1) The three categories of federal government expenditures, in addition to government purchases, are
A) interest on the national debt, grants to state and local governments, and transfer payments.
B) interest on the national debt, defense spending, and transfer payments.
C) defense spending, budgets of federal agencies, and transfer payments.
D) defense spending, Social Security, and Medicare.
Q2) The multiplier effect refers to the series of
A) autonomous increases in consumption spending that result from an initial increase in induced expenditures.
B) induced increases in consumption spending that result from an initial increase in autonomous expenditures.
C) autonomous increases in investment spending that result from an initial increase in induced expenditures.
D) induced increases in investment spending that result from an initial increase in autonomous expenditures.
Q3) Explain why the timing of fiscal policy may be more difficult than the timing of monetary policy.
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Chapter 28: Inflation, Unemployment, and Federal Reserve Policy
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257 Verified Questions
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Sample Questions
Q1) During a time when the inflation rate is increasing each year for a number of years, are adaptive expectations or rational expectations likely to give the more accurate forecasts? Briefly explain.
Q2) If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently, how can that goal be achieved, and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips curve in the short run and the long run.
Q3) What impact does monetary policy have on the long-run Phillips curve?
A) Monetary policy can only shift the long-run Phillips curve to the left.
B) Monetary policy shifts the long-run Phillips curve to the right or left, depending on whether monetary policy is expansionary or contractionary.
C) Monetary policy can only shift the long-run Phillips curve to the right.
D) Monetary policy has no impact on the long-run Phillips curve.
Q4) If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
Q5) Explain why expansionary monetary policy would not result in reduced unemployment rates if workers and firms have rational expectations.
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Chapter 29: Macroeconomics in an Open Economy
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Sample Questions
Q1) An increase in U.S. federal government budget deficits that raises U.S. interest rates relative to the rest of the world should
A) raise the trade balance.
B) increase net exports.
C) cause the dollar to depreciate.
D) lead to a current account deficit.
E) decrease foreign portfolio investment.
Q2) What is the difference between net exports and the current account balance?
Q3) Which of the following would result in a trade surplus for the United States?
A) Exports of goods = $725 billion Imports of goods = $790 billion
Exports of services = $350 billion
Imports of services = $260 billion
B) Exports of goods = $625 billion Imports of goods = $625 billion
Exports of services = $300 billion
Imports of services = $375 billion
C) Exports of goods = $550 billion Imports of goods = $575 billion
Exports of services = $275 billion
Imports of services = $300 billion
D) All of the above will result in a trade surplus.
Q4) Explain the relationship between net exports and net foreign investment.
Page 31
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Chapter 30: The International Financial System
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Sample Questions
Q1) If the GDP deflator in the United States is 114, and the GDP deflator in Ukraine is 142, which of the following changes would the theory of purchasing power parity predict? (The Ukrainian currency is the hryvnia.)
A) The demand for the dollar will rise since the dollar is undervalued.
B) The demand for the dollar will fall since the dollar is overvalued.
C) The supply of the dollar will fall since the dollar is undervalued.
D) No prediction regarding changes in the demand or supply of the dollar can be made without information on the exchange rate between the United States and Ukraine.
Q2) A currency pegged at a value above the market equilibrium exchange rate is
A) overvalued.
B) undervalued.
C) achieving purchasing power parity.
D) depreciating in value relative to its pegged currency.
Q3) Managed float exchange systems were abandoned with the implementation of the gold standard.
A)True
B)False
Q4) Briefly describe how the Bretton Woods system operated.
Q5) Which aspects of globalization help to increase growth in the world economy?
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