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When one type of economy comes in contact with another type of economy

A) Economic equilibrium is achieved
B) Economic conflict arises
C) Economic isolation occurs
D) Economic stagnation follows

User Ketevan
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1 Answer

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Final answer:

When different economies come into contact, the outcome can vary greatly depending on several factors. While convergence might occur as economies develop, economic conflicts can also arise due to varying interests or perceived threats. Economic trade-offs between equality and output further illustrate the complexity of such interactions.

Step-by-step explanation:

When one type of economy comes in contact with another type of economy, it does not necessarily lead to any one of the outcomes listed as options A, B, C, or D by default. The actual outcome depends on various factors including the policies adopted by the governments involved, the economic conditions of the countries, and the compatibility of the economic systems. Looking at the theoretical aspect, the contact between different economies can lead to a phenomenon called convergence, meaning that societies tend to move toward similarity over time as their economies develop. However, this contact can also lead to economic conflict, particularly if the economies have competing interests or if one economy feels threatened by the other.

In the context of the information provided, society does face trade-offs, such as choosing between greater equality and economic output. These choices can lead to various outcomes, ranging from increased equality with little impact on economic output to a reduction in output if equality is aggressively pursued. This scenario illustrates the complexity of economic interactions and the balance needed to achieve desirable outcomes, such as economic equilibrium or growth.

User Knocte
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