World-System Theory and Economics Quiz

World-System Theory

• Core states in Wallerstein's theory are significant centers of demand for goods, acting as processors of goods from semi-peripheral areas in the global economy
• Semi-peripheral areas process and distribute products from peripheral areas to core areas
• The statement that core states distinguish themselves from peripheral areas by being centers of significant demand for goods is FALSE
• The statement that semi-peripheral areas' role is in handling goods from peripheral areas and distributing them to core areas is TRUE

Trade and Markets

• Trade can lead to unequal wealth distribution
• Markets usually use prices to allocate resources effectively
• The statement that trade makes everyone better off is FALSE, while the statement that markets efficiently allocate resources using prices is TRUE

Inflation and Unemployment

• Society faces a short-run tradeoff between inflation and unemployment
• Reducing inflation may lead to long-term economic growth
• The statement that reducing inflation leads to long-term economic growth is FALSE. The statement that inflation is reduced when currency is not printed excessively is TRUE.

Rational Decisions

• Rational people evaluate costs and benefits at the margin
• Costs and benefits determine behavior
• The statement that rational people think at the margin is FALSE. The statement that behavior is influenced by cost and benefit is TRUE

Opportunity Cost

• People face tradeoffs, emphasizing opportunity cost
• Opportunity cost is the value of the next best alternative
• The statement that people face tradeoffs is TRUE, emphasizing the concept of opportunity cost.

Globalization and Interconnectedness

• Electric vehicles (EVs) represent environmental globalization
• Economic globalization involves the interconnectedness of political systems
• Both statements are TRUE

Philippine History

• Catholicism and Hispanic cultural elements were introduced to the Philippines during Spanish colonization
• The People Power Revolution was a turning point in Philippine history, leading to independence from Spanish rule
• Both statements are TRUE

Cultural Diversity

• The statement that technologies make cultures more alike, reducing diversity, is TRUE.
• The statement that technology isolates people is TRUE.

Technology and Communication

• Improved communication is a potential downside of technology
• Economic globalization involves national economic integration
• Both statements are TRUE

Economic Development and IFIs

• Countries' standards of living depend on their ability to produce goods and services influenced by technological advancements
• Governments intervene in market failures
• Both statements are TRUE

International Financial Institutions (IFIs)

• IFIs support economic development by providing loans and advice for infrastructure projects
• The statement correctly defines IFIs' role in economic development
• The statement is TRUE

Neoliberalism

• Neoliberalism supports free markets and personal freedom
• The statement is TRUE