Globalization, Digital Change & the 2007–2009 Financial Crisis — Practice · Grade 11 Social Studies

Chapter: Global Connections, Security & Historical Inquiry

What this practice covers

By the end of Globalization, Digital Change & the 2007–2009 Financial Crisis you should be able to:

6 questions, written answer, each with a worked explanation.

Vocabulary used: context, evidence, interpretation, supply chain, digital divide.

Problem 1

Why should export receipts and value added be distinguished?
Answer and explanation

Gross export value and the value added at one stage are different measures. A global supply chain can create interdependence while distributing earnings and risks unequally. Trace ownership, finance, production, transport, and consumption rather than assuming every country or worker receives the same share of a product’s price.

Problem 2

How do Internet infrastructure and the web have different roles and histories?
Answer and explanation

The Internet is a network infrastructure; the web is one system using it. Public research, universities, private firms, standards, and users contributed through different roles. A device or connection alone does not establish equal digital skills, reliable access, or control over how information is distributed.

Problem 3

Why is repeated publicity not independent corroboration?
Answer and explanation

Digital publicity and a credible record are different things. A widely shared financial claim still requires source, date, definitions, and evidence. Platform incentives can influence visibility without determining truth. Compare original documentation and independent data rather than treating repetition as corroboration.

Problem 4

How should crisis stabilization be compared with longer-term household outcomes?
Answer and explanation

Mortgage losses, leveraged institutions, and disrupted short-term funding could reinforce one another during the crisis. TARP legislation and Federal Reserve action used different tools. Compare immediate stabilization with employment, housing, distribution, and later regulation instead of assuming one intervention explains every outcome.

Problem 5

Illustrative balance sheet: assets are worth 100 units, debt is 90, and equity is 10. Assets fall to 95 while debt remains 90. Calculate the new equity and the percentage loss of equity; identify a limitation.
Answer and explanation

Equity falls from 10 to 5, a 50 percent loss after a 5 percent asset decline. The example illustrates leverage. It omits income, other assets, funding terms, and policy responses and does not describe a particular firm or offer an investment recommendation.

Compute 95 − 90 = 5 units of equity.

Compute (10 − 5) ÷ 10 = 50 percent loss.

Distinguish this simplified valuation from an entire institution.

Response criteria

  • Describe the historical context and institutions accurately.
  • Connect relevant evidence to an explained conclusion.
  • Represent particular perspectives without stereotypes or invented testimony.
  • Identify an evidentiary limitation or a distinction that qualifies the claim.

Problem 6

Why should emergency lending and government spending not be treated as the same crisis response?
Answer and explanation

They involve different institutions, balance-sheet arrangements, recipients, and intended channels. A central-bank liquidity measure addresses funding conditions, while fiscal spending or transfers can affect demand and household resources. Explain the particular instrument and evidence of outcomes rather than judging all responses through one label.

Response criteria

  • Describe the historical context and institutions accurately.
  • Connect relevant evidence to an explained conclusion.
  • Represent particular perspectives without stereotypes or invented testimony.
  • Identify an evidentiary limitation or a distinction that qualifies the claim.

Browse all courses