Global Economic Sectors and Systems

Question 1

Using complete sentences, give at least three reasons why tracking the informal sector of an economy is difficult.

Revolt · Accepted Answer

Tracking the informal sector is difficult because many transactions involve undocumented cash payments that are not recorded in official systems. Additionally, businesses in this sector are often unregulated, so there is no formal oversight or data collection. Finally, activities like bartering and coerced labor do not leave any paper trail that economists can follow.

Question 2

Who or what manages the economy and determines production in a planned economy? A. a tribal leader B. the forces of supply and demand C. an elected committee of experts D. the government Please select the best answer from the choices provided.

Revolt · Accepted Answer

D

Question 3

Jobs that involve creating something out of raw materials, like constructing new homes, are part of the __________ sector of the economy. A. primary B. secondary C. tertiary D. quaternary Please select the best answer from the choices provided.

Revolt · Accepted Answer

B

Question 4

Unregulated businesses, undocumented cash payments, coerced labor, and bartering are part of the __________ sector. A. informal B. primary C. formal D. quinary Please select the best answer from the choices provided.

Revolt · Accepted Answer

A

Question 5

Read the passages below and answer the question that follows. John loves to sleep late in the morning. He also knows that school is important. This morning, John chose to wake up and get to school on time. In doing this, he gave up the opportunity to sleep in. The opportunity cost of John's choice to go to school is two or three hours of sleep. Ana loves to go camping with her family and is looking forward to their trip next weekend. Ana learns that her good friend is having a sleepover birthday party the same Saturday as the trip. For Ana, what would be the opportunity cost of going to her friend's party? Why?

Revolt · Accepted Answer

For Ana, the opportunity cost of going to her friend's party would be missing the family camping trip. She would have to give up the opportunity to go camping in order to attend the sleepover.

Question 6

Which of the following groups is the least likely to work in the informal sector of the economy? A. women B. men C. children D. elderly people Please select the best answer from the choices provided.

Revolt · Accepted Answer

B

Question 7

Why might an economist think that some jobs categorized as quaternary-sector jobs could be included in the tertiary sector?

Revolt · Accepted Answer

Some quaternary jobs, such as teaching or consulting, could be seen as providing services similar to other tertiary sector jobs. The distinction between providing information and providing a service can sometimes be blurry.

Question 8

Explain why no modern nations have a purely free-market economy.

Revolt · Accepted Answer

No modern nations have a purely free-market economy because governments always play some role in regulating businesses, protecting consumers, and providing public services. Additionally, pure free markets would not address issues like monopolies or externalities effectively.

Question 9

Using complete sentences, give at least two reasons why many women throughout the world work in the informal, rather than the formal, economic sector.

Revolt · Accepted Answer

Many women work in the informal sector because it offers more flexibility to balance work with family responsibilities like childcare. Additionally, women may face discrimination or barriers to entry in formal employment, such as lack of access to education or certain job opportunities.

Global Economic Sectors and Systems Answers

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