Category: Economics

➤ Why shouldn’t an economist say “you should never miss class”?
An economist avoids absolute rules because attendance involves trade-offs and marginal analysis. The best choice depends on marginal benefits, penalties, constraints, and personal goals. For example, skipping one lecture for a paid internship could boost lifetime income and relevant skills more than that single session, making the trade-off rational in some cases.

➤ Why does globalization increase interdependency of capital, technology, and labor?
Globalization raises interdependency by connecting production networks, financial markets, and information systems. Firms locate tasks where costs or skills are optimal, and capital flows follow investment opportunities. Technology and communication link suppliers, workers, and consumers, so shocks in one country can rapidly affect employment, prices, and supply chains elsewhere.

➤ Why is Mexico often classified as a developing country while the United States is classified as developed?
Classification uses metrics like GDP per capita, human development index, infrastructure, and institutional capacity. Mexico has lower average income, higher poverty rates, and greater inequality than the US. These economic and social gaps place Mexico in an upper-middle-income or developing category compared to the fully developed U.S. economy.

The difference between a reference cycleand a specific cycle is that a referencecycle refers to aggregate economicactivity, whereas a specific cycle relates toa specific time series only.TrueFalse

Question 12Run into does not mean the same thing as the words run and into doon their own. What is the phrase run into an example of?
a two-word verba metaphoran equivalency terma malapropismjargon