1. Jean Eden T. Dela Cruz II-D
What is global economy? Why is it important? what are the significant play-makers on this
matter?
 Global economy refers to the economic activities worldwide where multiple countries
takes place its either have a positive or negative impact to the countries involved.
Globalization runs the economy where the populations take control on how global
economy work and providing a foundation for worldwide economic growth. It is
important to have global economy it because when the population is increasing can lead
to growing markets where it will make one of the primary sources of world economic
growth. We have this long-term economic outlook where the productivity of global
economy increases or developed, and this is important in economy because the
emerging countries will help globally. The significant playmakers on this matter are the
development and the foundation of economic growth worldwide where various
countries encouraging the competitiveness of raising productivity and efficiency across
countries.
Define and Discuss income inequality and wealth inequality. How do they relate to each other
in promoting nation-development?
 Income inequality is the unequal distribution throughout population where it is one of
the major concerns around the world. The uneven distribution of income in any given
population can cause problems where equality and inequality will be questioned.
According to equalitytrust.org.uk wealth refers to the total amount of assets of an
individual or household. This may include financial assets, such as bonds and stocks,
property, and private pension rights. Wealth inequality therefore refers to the unequal
distribution of assets in a group of people.
Define, discuss, and differentiate the concept of Capitalismfrom Socialism.
 According to ThoughtCo, capitalismis an economic systemunder which the means of
production are privately owned. Production and consumer prices are based on a free-
market system of “supply and demand.” Socialismis an economic and political system
under which the means of production are publicly owned. Production and consumer
prices are controlled by the government to best meet the needs of the people.
Capitalismis most often criticized for its tendency to allow income inequality and
stratification of socio-economic classes. Also, socialismis most often criticized for its
provision of social services programs requiring high taxes that may decelerate economic
growth. Socialist governments strive to eliminate economic inequality by tightly
controlling businesses and distributing wealth through programs that benefit the poor,

2. such as free education and healthcare. Capitalism, on the other hand, holds that private
enterprise utilizes economic resources more efficiently than the government and that
society benefits when the distribution of wealth is determined by a freely operating
market. There are many differences about capitalismand socialism. When it comes to
ownership of assets, capitalismmeans of production owned by private individuals while
socialismmeans of production owned by government or cooperative. Another is when it
comes to income equality, capitalismincome determined by free market forces while
socialismincome equally distributed according to needs. Under capitalism, consumer
prices are determined by free market forces. Socialists argue that this can enable
businesses that have become monopolies to exploit their power by charging excessively
higher prices than warranted by their production costs. Under capitalism, consumer
prices are determined by free market forces. Socialists argue that this can enable
businesses that have become monopolies to exploit their power by charging excessively
higher prices than warranted by their production costs. In socialist economies,
consumer prices are usually controlled by the government. Capitalists say this can lead
to shortages and surpluses of essential products. When it comes to efficiency and
innovation, capitalismfree market competition encourages efficiency and innovation
while socialismis government-owned businesses have less incentive for efficiency and
innovation. In healthcare and taxation, socialism argue that governments have a moral
responsibility to provide essential social services. They believe that universally needed
services like healthcare, as a natural right, should be provided free to everyone by the
government. Capitalism contends that state, rather than private control, leads to
inefficiency and lengthy delays in providing healthcare services. In addition, the costs of
providing healthcare and other social services force socialist governments to impose
high progressive taxes while increasing government spending, both of which have a
chilling effect on the economy.
What is Global Stratification? What causes it? How it differs from income inequality?
 Global stratification is social stratification on a global scale. Where social stratification
draws attention to inequalities between smaller groups of people, global stratification
draws attention to inequalities between entire countries. Income, purchasing power,
and wealth are used to calculate global stratification. Global stratification also compares
the quality of life that a country's population can have. Poverty levels have been shown
to vary greatly. Income inequality occurs when a person’s position in the social hierarchy
is tied to different access to resources, and it largely depends on differences in wealth.
For example, a wealthy person may receive higher quality medical care than a poor
person, have greater access to nutritional foods, and be able to attend higher caliber

3. schools. Material resources are not distributed equally to people of all economic
statuses.