finalskey - Key to FINAL EXAMINATION ECONOMICS 107 If there is one statement remaining in the text below that is the correct answer If the answer is

Key to FINAL EXAMINATION, ECONOMICS 107 JUNE 12, 2002 If there is one statement remaining in the text below, that is the correct answer. If the answer is in [square brackets] that is the correct answer. I have put in some notes to clarify some of the answers. Prof M. 1. According to Eric J. Chaissan, Cosmic Evolution: The Rise of Complexity in Nature: d. order, complexity, information and organization have become more complex and exponentially so. 2. The Great Transformation according to Karl Polanyi: c. Occurred around 1800 when market relationships were dis embedded from social relationships. 3. John Von Neumann and Oskar Morgenstern, Theory of Games and Economic Behavior, 1944 remarked: "First let us be aware that there exists at present no universal system of economic theory...The reason for this is that economics is far too difficult a science to permit construction rapidly...Only those who fail to appreciate this condition are likely to attempt the construction of universal systems. Even in science which are far more advanced than economics, like physics, there is no universal system available at present. To continue the simile with physics. It happens occasionally that a physical theory appears to provide the basis for a universal system, but in all instances up to the present time this appearance has not lasted more than a decade at best." If you were Thomas Kuhn and wished to defend your work, which of the following argument do you think you would use. b. I'm not talking about a universal system but a coordinative vision, continuing areas of agreement about appropriate theoretical methods, agreed experimental protocols and an agreed epistemology and ontology. There is such a thing at any point in time as “doing standard science.” c. Revolutions in "paradigms" surely do not come along every decade. Look, many economists still fundamentally agree with most of Adam Smith's opinions. [d]. b and c. 4. Schumpeter's classical situation is a period in economics: c. when there is substantial agreement amongst economists of that period as to what are important issues and the correct theories to apply to them.. 5. Prof M.: a. thinks that there was a 4 th classical situation around the time of the publication of Samuelson’s Foundations of Economic Analysis and his textbook, Economics. In other words, the late 40s. c. Roger E. Backhouse on the other hand argues that the 1960s saw a 4 th classical situation emerge with the work of Hicks, Samuelson, Debreu, Arrow, Patinkin and the Cowles Commission. [d]. (a) and (c).