Chapter 3

Question 1

Market integration
The social institution that has one of the biggest impacts on society is the

Answer 1

economy

Question 2

economy is composed of

Answer 2

people.

Question 3

It is the social institution that organizes all production, consumption, and trade of goods in the society.

Answer 3

Economy

Question 4

– extracts raw materials natural environments.

Answer 4

Primary Sector

Question 5

– gains the raw materials and transforms them into manufactured goods.

Answer 5

Secondary sector

Question 6

– It offers services by doing things rather than making things

Answer 6

Tertiary sector

Question 7

True or False
The strength of a more powerful economy brings greater effect on other countries.

Answer 7

True

Question 8

What element is this 1st element, 2, 3, 4, or 5
the expression of currency in terms of gold or gold value to establish a par value. e.g. a 35 U.S. dollar pegged by the United States per ounce of gold is the same as 175 Nicaraguan

Answer 8

1st Element

Question 9

in each country (a central bank or its equivalent) would agree to exchange its own currency for those of other countries

Answer 9

the official monetary authority

Question 10

Most currencies are pegged to hence “Gold Standard” since it is redeemable in gold

Answer 10

gold

Question 11

individuals are no longer allowed to exchanged paper money to gold but

Answer 11

central banks only.

Question 12

What element is the establishment of an overseer for these exchange rates; thus, the International Monetary Fund (IMF)

Answer 12

third element

Question 13

This was established to administer responsibility to coordinate and regulate international monetary transaction as well as to promote economic prosperity and political stability. (Short term effects)

Answer 13

IMF – International Monetary Fund

Question 14

loans were expanded to the developing countries in the world to provide funds to finance various industrial projects. (Long term effects)

Answer 14

World Bank (before was “IBRD” or the International bank for Reconstruction and Development)

Question 15

What element eliminating restrictions on the currencies of member states in the international trade The General Agreement on Tariffs and Trade (GATT) was established in 1947 charged in crafting and policing multilateral trade agreements. Today, it is known as World Trade Organization (WTO).

Answer 15

Fourth

Question 16

The General Agreement on Tariffs and Trade (GATT) was established in charged in crafting and policing multilateral trade agreements.

Answer 16

1947

Question 17

was established in 1947 charged in crafting and policing multilateral trade agreements.

Answer 17

The General Agreement on Tariffs and Trade (GATT)

Question 18

The General Agreement on Tariffs and Trade (GATT) Today, it is known as

Answer 18

World Trade Organization (WTO).

Question 19

What element is this is that the U.S. dollar became the global currency.

Answer 19

final element

Question 20

True or false
By the 1950s and 1960s, European countries and Japan regained their economies and that undermined the economic competitiveness of the United States.

Answer 20

True

Question 21

True or false
The monopolization of US dollars led to the over valuation relative to other currencies to the extent that some countries doubted the supply of gold in the United States treasury.

Answer 21

True

Question 22

President of United States

Answer 22

Nixon

Question 23

With the pressure mounting President Nixon of United States
announced on to abandon the gold-exchange standard.

Answer 23

August 15, 1971