WGU D080 study for OA
1. What is a developing nation?: that make the transition from economies basedon
agricultural and raw materials production to industrialized economies. They exhibit rising
levels of education, technology, and per capita incomes. Governmentsin these nations have
often made steady progress in improving the climate for busi-ness, which attracts business and
economic investment. Examples of developing nations include India and Costa Rica.2
2. What is a traditional economy?: Centered around a family or tribe and guidedby tradition
Found in hunt-gatherer and nomadic societies; everyone consumes and producesthe same
goods.
Relies on bartering
Members produce what they need with no surplus Eventually, the economy evolves to some
form of currency
3. What are the advantages of a traditional economy?: There is little or no fric- tion between
members. Each member depends on each other for support. Custom and tradition dictate
resource allocation.
All members understand their position in society and what they are expected tocontribute.
It is more sustainable.
4. What are the disadvantages of a traditional economy?: It is at the mercy ofthe climate.
There is a lower standard of living.
It is vulnerable to a more efficient market or to command economies
5. What is a command economy?: an economy in which production, investment,prices, and
incomes are determined centrally by a government.
6. What are advantages of a command economy?: Organizations can mobilizelarge amounts
of resources without fear of lawsuits or environmental regulatory issues. Therefore, large
projects can more easily be undertaken.
An entire economy can be transformed based on a leader's vision.
7. What are disadvantages of a command economy?: Rapid change can leadto the neglect of
society's needs.
The production of goods and services are not tied to demand, and, if too little is produced,
rationing is necessary.
Following the rules, not innovation, is rewarded. Black markets or shadow economies are
common
The economy is less flexible and slower to react to change
8. What is a Market economy?: In a market (decentralized) economic system,leaders make
decisions based on consumer demands. Goods and services are produced and distributed
according to the rules of supply and demand. In other words, consumers influence how much
,product and services are made availablethrough their purchasing and usage patterns.
9. What are the advantages of a market economy?: Consumers pay for thethings they want
the most, and businesses produce the goods and services thatwill earn them a profit.
Production methods are efficient in increasing both productivity and profitability.Innovation is
encouraged and rewarded.
Investments by individuals and organizations in other successful organizations driveboth
innovation and quality improvement.
is a decentralized economy in which firms and households determine how resources are allocated
based on how best to satisfy their needs.
10. What are disadvantages of a market economy?: Those who cannot compete as well, such as
people with disabilities and their caretakers, may be at a competitivedisadvantage.
Not all can reach their full potential due to their inability to access education and obtain means
to improve skills.
There is a significant divide between the privileged and the underprivileged. Societymust
choose how to balance self-interest and protect the vulnerable.
11. What is a mixed economy?: A mixed economy borrows the following charac-teristics
from a market economy: It protects private property, the laws of supply and demand
determine prices in a free market, and it is driven by self-interest. A mixed economy, like a
command economy, uses the federal government to protectthe people and the market as well
as oversee the military and international trade and national transportation (Amadeo, 2019).
Variations of this structure range fromsocial democratic welfare states, such as in Sweden, to
mixed economies where
a significant percentage of GDP comes from the state sector, such as in Norway, which ranks
among the highest countries in quality of life and equality of opportunityfor its citizens.
has less government intervention than a command economy. Supply and demandcontrol the
economy, and ideally, the government steps in when needed.
12. What are the advantages of a mixed economy?: mirror those of the marketeconomy in that
goods and services are distributed where they are most needed.Prices are set by supply and
demand, innovation is encouraged, and capital is allocated to the businesses that are the most
innovative and efficient. A mixed economy minimizes the disadvantages of a market
economy by having a more significant role for government intervention in the market.
13. What are the disadvantages of a mixed economy?: include too much gov-ernment
interference, too much or too little freedom of choice, the government restricting competition,
and the country going into debt because of government intervention
14. What is a legal risk?: the likelihood that a trading partner will opportunisticallybreak a
contract or expropriate property rights
, 15. What is civil law?: Civil law is does not rely on case rulings and precedents. It is usually
between individual plaintiffs and defendants. Most widespread law systemin the world.
16. What is Common law?: law made by judges through their decisions, notthrough specific
statutes
17. What is religious law?: Religious law is based on the interpretation of religiousdoctrines.
One example is a requirement in Sharia that people following Sharia may not borrow money. To
compensate for the inability to take on debt, an asset-based system hasbeen established.
18. What is the purpose of the IMF?: The IMF helps maintain liquidity of globalfunding by
providing a straight-forward method for nations to borrow and loan toeach other through a
mechanism called the special drawing right.
To help ensure that the IMF loans are used for the intended purpose and repaid, theIMF sets
conditions both before and during the loan phase. These conditions are not without
controversy.
The conditions put on the loan require the recipient country to have a policy of austerity. This
policy, which usually results in a cut in funding for social programs, can have a significant
effect on citizens who are living in poverty, according to criticsof the IMF.
Other criticisms of the IMF address a lack of representation by the global south, an
overrepresentation by the United States, and environmental damage.
19. What are criticisms of the world bank?: The developed countries such as the
U.S. and Europe have too much control over its decisions.
20. What does the world bank do?: The World Bank provides low-interest loans,interest-free
credits, and conditional grants to developing countries in which a government (or sovereign)
guarantees repayment.
The World Bank Group is comprised of private lending banks as well as the WorldBank.
Some criticisms of the World Bank include: an imbalance of leadership power,enforced
conditionality, and environmental impacts.
21. What is the function of the WTO?: WTO supports developing nations byproviding both
training and support.
The WTO reviews the trade policies of all nations to ensure that each country istreated fairly
and equally under the most favored nation requirement.
Criticisms of the WTO Include a lack of equal trade, ensuring adoption of laborstandards and
rights, and ignoring environmental concerns.
22. What is the criticism of the WTO?: It protects developed countries more thandeveloping
countries.
23. What is an embargo?: an official ban on trade or other commercial activity witha particular
1. What is a developing nation?: that make the transition from economies basedon
agricultural and raw materials production to industrialized economies. They exhibit rising
levels of education, technology, and per capita incomes. Governmentsin these nations have
often made steady progress in improving the climate for busi-ness, which attracts business and
economic investment. Examples of developing nations include India and Costa Rica.2
2. What is a traditional economy?: Centered around a family or tribe and guidedby tradition
Found in hunt-gatherer and nomadic societies; everyone consumes and producesthe same
goods.
Relies on bartering
Members produce what they need with no surplus Eventually, the economy evolves to some
form of currency
3. What are the advantages of a traditional economy?: There is little or no fric- tion between
members. Each member depends on each other for support. Custom and tradition dictate
resource allocation.
All members understand their position in society and what they are expected tocontribute.
It is more sustainable.
4. What are the disadvantages of a traditional economy?: It is at the mercy ofthe climate.
There is a lower standard of living.
It is vulnerable to a more efficient market or to command economies
5. What is a command economy?: an economy in which production, investment,prices, and
incomes are determined centrally by a government.
6. What are advantages of a command economy?: Organizations can mobilizelarge amounts
of resources without fear of lawsuits or environmental regulatory issues. Therefore, large
projects can more easily be undertaken.
An entire economy can be transformed based on a leader's vision.
7. What are disadvantages of a command economy?: Rapid change can leadto the neglect of
society's needs.
The production of goods and services are not tied to demand, and, if too little is produced,
rationing is necessary.
Following the rules, not innovation, is rewarded. Black markets or shadow economies are
common
The economy is less flexible and slower to react to change
8. What is a Market economy?: In a market (decentralized) economic system,leaders make
decisions based on consumer demands. Goods and services are produced and distributed
according to the rules of supply and demand. In other words, consumers influence how much
,product and services are made availablethrough their purchasing and usage patterns.
9. What are the advantages of a market economy?: Consumers pay for thethings they want
the most, and businesses produce the goods and services thatwill earn them a profit.
Production methods are efficient in increasing both productivity and profitability.Innovation is
encouraged and rewarded.
Investments by individuals and organizations in other successful organizations driveboth
innovation and quality improvement.
is a decentralized economy in which firms and households determine how resources are allocated
based on how best to satisfy their needs.
10. What are disadvantages of a market economy?: Those who cannot compete as well, such as
people with disabilities and their caretakers, may be at a competitivedisadvantage.
Not all can reach their full potential due to their inability to access education and obtain means
to improve skills.
There is a significant divide between the privileged and the underprivileged. Societymust
choose how to balance self-interest and protect the vulnerable.
11. What is a mixed economy?: A mixed economy borrows the following charac-teristics
from a market economy: It protects private property, the laws of supply and demand
determine prices in a free market, and it is driven by self-interest. A mixed economy, like a
command economy, uses the federal government to protectthe people and the market as well
as oversee the military and international trade and national transportation (Amadeo, 2019).
Variations of this structure range fromsocial democratic welfare states, such as in Sweden, to
mixed economies where
a significant percentage of GDP comes from the state sector, such as in Norway, which ranks
among the highest countries in quality of life and equality of opportunityfor its citizens.
has less government intervention than a command economy. Supply and demandcontrol the
economy, and ideally, the government steps in when needed.
12. What are the advantages of a mixed economy?: mirror those of the marketeconomy in that
goods and services are distributed where they are most needed.Prices are set by supply and
demand, innovation is encouraged, and capital is allocated to the businesses that are the most
innovative and efficient. A mixed economy minimizes the disadvantages of a market
economy by having a more significant role for government intervention in the market.
13. What are the disadvantages of a mixed economy?: include too much gov-ernment
interference, too much or too little freedom of choice, the government restricting competition,
and the country going into debt because of government intervention
14. What is a legal risk?: the likelihood that a trading partner will opportunisticallybreak a
contract or expropriate property rights
, 15. What is civil law?: Civil law is does not rely on case rulings and precedents. It is usually
between individual plaintiffs and defendants. Most widespread law systemin the world.
16. What is Common law?: law made by judges through their decisions, notthrough specific
statutes
17. What is religious law?: Religious law is based on the interpretation of religiousdoctrines.
One example is a requirement in Sharia that people following Sharia may not borrow money. To
compensate for the inability to take on debt, an asset-based system hasbeen established.
18. What is the purpose of the IMF?: The IMF helps maintain liquidity of globalfunding by
providing a straight-forward method for nations to borrow and loan toeach other through a
mechanism called the special drawing right.
To help ensure that the IMF loans are used for the intended purpose and repaid, theIMF sets
conditions both before and during the loan phase. These conditions are not without
controversy.
The conditions put on the loan require the recipient country to have a policy of austerity. This
policy, which usually results in a cut in funding for social programs, can have a significant
effect on citizens who are living in poverty, according to criticsof the IMF.
Other criticisms of the IMF address a lack of representation by the global south, an
overrepresentation by the United States, and environmental damage.
19. What are criticisms of the world bank?: The developed countries such as the
U.S. and Europe have too much control over its decisions.
20. What does the world bank do?: The World Bank provides low-interest loans,interest-free
credits, and conditional grants to developing countries in which a government (or sovereign)
guarantees repayment.
The World Bank Group is comprised of private lending banks as well as the WorldBank.
Some criticisms of the World Bank include: an imbalance of leadership power,enforced
conditionality, and environmental impacts.
21. What is the function of the WTO?: WTO supports developing nations byproviding both
training and support.
The WTO reviews the trade policies of all nations to ensure that each country istreated fairly
and equally under the most favored nation requirement.
Criticisms of the WTO Include a lack of equal trade, ensuring adoption of laborstandards and
rights, and ignoring environmental concerns.
22. What is the criticism of the WTO?: It protects developed countries more thandeveloping
countries.
23. What is an embargo?: an official ban on trade or other commercial activity witha particular
