Double Entry Journal #9

Due Thursday Midnight

High Noon 20 Global Problems 20 Years to Solve Them - Chapters 5 & 6

1. Why is inflation less of a concern in the new world economy?
Price increases don't usually stick due to hypercompetitive businesses; therefore, inflation has decreased over the years.

2.What is the difference between a negative feedback economy and a positive feedback economy?

negative feedback economy- farmers produce more while consumers buy less/lower level of demand
positive feedback economy- higher level of demand

3. Give a example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies?
New technologies can bring money and jobs into the country by making disproportionate benefits close to non-existent. Look at China with their smart cards.

4. What is one prediction the author made concerning the new economy that appears to be true?
the stresses? I don't really know the answer to this. 

5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?
As the book says, the market is a moron. There will be emerging social problems and overflowing carrying capacity.

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.
 Website about market regulating<--- I think that regulating marketing is good.
1. What kind of things can be flagged?
2. How much are markets regulated?

8. What is the cause of the crisis of complexity in the new world economy?
As we get more complex, the space we have gets scarce.