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Difficulty: EasyEconomics in the Global Age

Source: Margaret Thatcher, Prime Minister of the United Kingdom, speech to the Conservative Party Conference, October 11, 1985.

"We have made it our mission to roll back the frontiers of the state. We have privatized major state-owned industries, returning them to public and private enterprise. By encouraging competition and reducing government intervention, we have revitalized our economy, giving individuals more control over their own lives and decisions."

The economic policies advocated in the passage are most closely aligned with which of the following trends of the late twentieth century?

  1. The global spread of free-market economic policiesAnswer
  2. B
    The establishment of mercantilist trade restrictions
  3. C
    The implementation of agricultural reforms under the Green Revolution
  4. D
    The expansion of direct colonial control in developing regions

Answer

The global spread of free-market economic policies
The correct answer is correct because Margaret Thatcher's advocacy for privatization, deregulation, and reducing the role of the state in the economy is a defining feature of the global turn toward free-market economic policies (often termed neoliberalism) during the late twentieth century.

Step-by-Step Solution

1
Analyze the stimulus document for key economic concepts.
The speaker advocates for privatization, reducing the role of the state, and encouraging competition and private enterprise.
Understanding the core argument of the source is necessary to connect it to broader historical trends.
2
Identify the historical context of the document.
The speech is from 1985, a time when governments in Western nations began moving away from state-controlled economic models.
Placing the source in its correct temporal and global context helps link it to late-twentieth-century economic developments.
3
Select the option that accurately describes this trend of privatization and deregulation.
The trend corresponds to the global spread of free-market economic policies, also known as neoliberalism.
This matches the core concepts of privatization and reduced government control described in the stimulus.

Key Concept

Economics in the Global Age
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Economics in the Global Age

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