1. Why is inflation less of a concern in the new world economy?
Inflation is less of a concern because we can better predict what the economy will do. The new world economy has a less inflation-prone environment.
2.What is the difference between a negative feedback economy and a positive feedback economy?
A negative feedback economy is when lower level of demand is being controlled, but is effected by short-term supply and demand constraints. A positive feedback economy moves so quickly and is so cheap that the constraints don't really matter.
3. Give a example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies?
New technologies can help other countries try to catch up by allowing them to learn modern day medical techniques. In some countries they still use "Western Remedies" to treat loved ones. If we could work closer with other countries to obtain new technology on how to cure patients they would maintain a larger population to build a stronger population, who can then focus on their struggling economy rather than there health.
4. What is one prediction the author made concerning the new economy that appears to be true?
One prediction the author made that appears to be true is the way everything relates. If something happens in one part of the global economy it really does effect the entire globe.
5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?
This is a concern because it will leave problems that will be unattended, and it will cause long term problems with in society and the market.
6. Read and Link to a Website that provides information about regulation and markets. Based on the information provided in the website, what is your position on markets and regulations? Then list two questions you have about markets and regulation.
In the website I was looking at, the article displayed was about advertisement and the battle over who and how it should be regulated. I believe that in order to create a balanced market, you have to have federal regulation involved in business, advertisements, and in all competitive markets. There needs to be an outside view and ruler that keeps everything in order. If self regulation was all we had, I believe companies and organizations would take advantage of this power and create a market that would destroy our economy. Two questions I have about regulations and the market would be, how could a company self-regulate without any outside views, without going under or getting out of control. Also I would ask, if self regulation has proven to be unsuccessful, for example the power to self-regulate was taken away in the 70's from the specific organization I was reading about, then why are they fighting so hard to try again.
8. What is the cause of the crisis of complexity in the new world economy?
The cause of the crisis of complexity in the new world economy is over the population increase and the spew of complexity that goes along with that.
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