doc3 - Te i Economics 107 Midterm Examination November 3,...

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Unformatted text preview: Te i Economics 107 Midterm Examination November 3, 2004 [There are 8 pages to this exam. Check that you have all the pages. Note there are always 5 options to any multiple choice question. i sometimes put two or more options on one line to save trees.i WARNING: Experience shows that if you make an erasure on your Scantron, you run the risk that the optical' scanner - which is very sensitive - wilt score your answer incorrectly. For obvious reasons, I am going to take the optical scunner’s grading as final. So don’t make erasures. l,"Hint: score your answers on this examination paper]r and then transfer them to your Scantron SEE-E or SSE-ES when you have completed your work} There are afew hianlt Scantrons uvaiiahle in the room for 25 cents if you have spofl‘ea a Scantron. Prof M. 1. As far as Prof M. knows at the moment, the first person to identify the economic system was C_ournot In 1333. We can explain this by: a. the historical [act that there were no economic systemshei‘ore Polanyt’s Great Transformation _. h. the fact that intellectuals were all Impressed with 1lt'ico's stages and Vito wrote that economic systenn emerged in the onnnnerclal stage. )2.” the historical {act that previous thinkers thought about how to manage a polls or polity or society and had not abstracted econ omic reiationshlps from all social relationships. d. the well known biological fact that the French are just smarter than anyone else. c. All of the above I. The concept “contest” as used in Economics lll'l' denotes: {11/ a unit ot'onr own personal cognitive system. h. a conversation always having the property of multlvoclty.' c. an historical theory that gives a unified, partisan account of the historical development ol' any phenomenon of Interest. tl. a period ol‘ substantial agreement amongst economists alter a long period ofstruggle and controversy. c. None of the lbIM'EI' 3. Eric J. Chaiason in CosmicEvoiution: The Fire affornpiexinr in Nature, has argued that: a. Nature, in its evolutionary process. and due to the laws of entropy, simplifies all complex phenomena. So just lilo: Mart said, we should expect fewer producttve entitles as countries industflaltae. Eventually we shall see a world of monopolies. .5 i In. From the Big Bang that started the natural history of the Universe, complexity has been Increasing linearly. From the Big Bang that started the natural history of the Universe. Increasing complexity has had to tackl?entropy so that the rise oi complexity is very, very slow. fiiTIDm galaxies in snow flakes, from stars and planets in life itself, we are beginning to identify an underlying ubiquitous pattern penetrating the fabric of all! the natural sciences. System changes have generally been towards greater amounts of diversity and complexity. The com representing this changed by little [or vast amounts of time and then afterwards has steadily Increased steeply. c. It. is impossible to make generalizations about evolution in general |i.e. that is when both the physical and the biological realms are considered]. 4. Those who have argued that Plato was really the father of “communist” ideology rather than Karl Marx: apt-e correct. There is no private ownership to Plato‘s Republic. _ ii. have not read Plato carefully. It is only Plato's Guardians who live under conditions of communal ownership. ' c. are reading more into the historical record than actually exists. It is Adam Smith who is the Father of Communism because his Wealth ofNations inspired Karl Marx" |l shalt deduct ll] points from anyone I.Itho answers this 3.5 correctli d_ are partly correct as Plato is the first to Introduce the notion that the proletariat will eventually rise up out! overthrow the capitalist class. c. lb! and [d]. CITIIEH DOG at Mark G‘Hare " finmspai', sic-roam 23. um EWW?LIFLP‘K1H$UJIMWP MW , we aece Nineteen-new h 59:: flimmffiwa ' l. TEIHdELE-SHT'L‘ . conile ms LF'I'H'I' WWI T“ m‘ - Eve u num- {Mfitfiglpfl Files-villi Hrs-Hull. 'I'T IS UP TD 11'? mm ' Gocn m1. (I! _ . mum-refim ”- fr— _ ID 5._ ti'ltlaen Dog is spealdng in: (I. Platonic tenses. ’ h. the language of medieval scholastlclsm. e. the language ot the Mercantilitt critique of an. d. terms lathe would have used. e. the language oil-Ionic. l5. Jus germane was: a. a doctrine ol the Catholic scholasfiu. b. was the Roman version ol‘Aristotle's doctrine that some individuals were “natural slaves". c. Roman interontionel law which embodied the principle that laws held by a number of subject nations in the Roman Empire had superior force than laws held by one nation. :1. a list of Rome‘s allies- e. None ol' the above. T. There has been a considerable debate on inst how complex life was In a Greek polls. I. In 189] |correct date} Karl Bother suggested that Greek economic life was simple and mull-scale, h. Eduard Meyer argued that “in the history;I of Greece, the seventh and siIth centuries EC. correspond to the fourteenth and fifteenth 1n the modern world, the fifth corresponds to statemeh." c. Max Weber argued that in ancient economies social relations. not abstract laws ol'aupplv and demand, fired values. 11. Sir Moses l-"inley,I argued that Ihocient Economies were qualitatively dlflenut to contemporary moqu end were predisposed to war and Imperialism ,e’hll olthe above. ll. The scholastiu, as they have been canonited in the conventional wisdom until quite recently: a. were more concerned with deduction than Induction. b. wished. to derive rules of conduct lroco known religious principles and belief. c. did not experiment. The}r eacogitated. |£tcogita1e - Transitive verb meaning “to think ont,I deviseI invent."II From the Latin etcogitalus, a past participle liming “found not by thinking." d. in the Universities made a distinction between base and divine knowledge than inhibited the growth of science.. _e-:"All of the above. ’ [Recent scholarship is considering whether there was the beginnings of an European intellectual revolution as earl}.r as the [It h century with the beginnings an empirical, scientific spirit. Prol' ML] 9. Prol M. argued that: a. the Babylonian t'.'_‘aptivit}I influenced the break up of the mcdicvat order. For a considerable period the Popes were French and located in Avignon. h. the Great Schism influenced the break up of the mediEval order. Fora time there IInc-re Popes in both Avignon and Rome, and {or a shorter time in Avignon, Home, and the Italian cit},r ot' Pica. c. technological innovation in ocean transport substantith lowered the costs oi goo-d5 and produced fiourlshtng mercantile communities. Merchants tended to ally themselves 1with monarchs who could extend then: rights. Ll. monarchs used religion as a Iool to enhance their own power./ All of the above. I J in. Machiavelli in It Principe: /a:’ rejected the belief that monarchs should be bound by moral precepts announced by a Universal Church that had determined the morality of all individual actions. b. recommended that monarch ensure that all political and economics changes increase wealth for all parties. c. sought to define Ideal Justice. :1. formulated the doctrine oi the Divine Eight of Kings. e. all at the above. 11. Domestic availability IDA} is: . /1. equal to GNP + imports - exports. II a country has an import surplus, DA is greater than GDP. b. is a mercantil'tst term tor the available surplus domestiully available for export. c. is a mercantillst term for the unemployed available for employment in caport industries: tL is always in than the GNP. e. is always greater than the GDP. 12. The distinction. between. current transactions and capital transactions In the Balance of Payments depends on: ’flbflier a particulartransactinn Involves a debt [IOU] or not. b. whether a particular n'nnsnction will occur this year or out year. c. whether a particular transaction is initiated by a foreigner or by the citizen of a particular country. d. whether a particular transaction is initiated by a private Individual or by a corporate entity. e. all at the above. 13. Clue nrft'iae following is a unilateral transier that Il'l'ill get into the Balance of Payments. I'I-‘e'llicih. one? a. The Lagrange family tram Parts visits Disneyland. Mr Legrange purchases entrance tickets for the tannly. {hf Madame Legrnnge sends her sister, in Whittier, Si] Euros for Christm. c. Madenaolnelle Legrange sends her boyfriend Istudying Economics Ill".I at UCLA 1. a copy of Paris Snr'r. cl. The chaul'l‘eurol‘ Monsieur Legrnuge orders a spare part for the Legrauge family Lexus from Carson Toyota, in Carson. Calltornla. c. All or the above. 14. The tact that there are “net” entries as well as “gross” entries In the Balance of Payments means that: a. governments have something to hide and are pulling the wool over our eyes. h. gross entries are citentries [in other words carriage, insurance, and treight has been paid] whereas net eon-lea are tub entries [meaning “free on board: costs are only Included only until a commodity has been loaded on a ship or other means ottrausportation] c. we are inst going to have to convert net eutriu in PPP |purchaslng power parity| prices to get to gross pflcfi. ! sifl'or some types or traded items we do not know from the data given to us the total volume of the Item traded. e. All of the above. 15. You own stock In Harlan and Wolff in Belfast, Northern Ireland and get a check for Silll euros. This Is: a. an import of an IOU and will appear on the Capital Account as an export. it. an eaport of an IDU and will appear on the lEapital Account as an import. c. actually won't appear on the US Balance at Payments but will appear In the Northern Irish nalance oi Paynseuts. Kali'l'ecorlled on the American Current Account as an earning an an investment and will appear on the export side ol'tlte Balance. e. None of the above. I15+ H country A makes a Direct investment in Country B: it. this Will Show up on the capital account oi' Country A as an import. b. this will show up on the capital account orCuoutry A as an export. fec'ihis 1will show up on the current account of Country a as an import. d .this will show up on the current account of Country A as an export. e. this will not shew up on the Balance of Payments at Country B. 11'. Some of the reasons why bullionlns and mercantilists wanted imports of gold were: a. gold imports provided “a sinew at war." . h. mnarchs by owning mints could debase currencies in times of emergency. c. I“money quickens trade”- Ii. that more gold enabled the switch from losing our language and concepts| natural to money economy. e.".ltll ot' the above. Fa. : 15.;i Mun might be viewed as making Mercantilisl thinking a tad more enlightened because: I. f I I _ I I I he argued that exporting gold to lndla was UK as this helped Britain overall to have an Import surplus. In he made a strong pitch for governments to leave business to business and stop worrying about the BOP. c. he argued monarchs should promote the natural liberties of all citizens of a country. a, he was the first person to argue for the removal of all tariffs. e. None of the above. 19. To mercantilist thinkers a Balance of Payments was “favorable” if: a. it was very small, and diminishing over time. {-biit produced an export surplus. c. it produced an import surplus. d. it enabled the purchase or luxury items tor the rich. e. it enath the pursuit of cootracyclicai policy. 1|}. Sir Thomas Mun influenced European thought on ioreig'u trade for many decades. He did this: .afddesplte the fact he clearly was involved in special pleading tor the East lndia Company. [1. by thoroughly rejecting mercantilisut c. by introducing the first systematic use of statistics into mercantilist literature. it. by agreeing with Bacon on the illusions that afl‘eet thinking. It. none nt the above. 21. One general feature of Mercantilism was that: _ alli-‘Iercantilist writers started to detach thinking about the world oi the merchant from moral concerns. "I h. Mercantilists ceased to have any concern with the power and authority of the central state. c. Mercantillsts started to think in terms of international benefits and costs instead of national benefits and costs. d. Mercantillsts began to introduce proposition formulated in mathematical ternfi that were subject to quite refined statistical techniques. _ c. All of the above. F 5 11}. Sir Francis Bacon in talking about the “illusions” that influence the creation and transmission of useful "'itnowledge: a. was providing a discussion only of use in understanding intellectual history of the slxtunth and early acumen“ century — a dead man talking about dead issues. b. was plainly wrong. As a ueoPiatonist, he was completely out of touch with the scitit'ic revolution othls times. fit his linger on problems that continue even today alt‘ect the expansion of uselul knowledge if for “illusions” we substitute “conversational stabilities" we come to the conclusion that such stabilltics are useful in the short run but may build resistance to the Introduction of new paradigms etc.! at. was merely reflecting the neoatrisioticianism of European universities ol'the day. an showed himself to he a typical English aristocrat with little concern [or the general well'are. 13. Newton's contest in physics had direct influence on the development of imnomics! a. Hume as a young person declared he would produce a Newtonian revolution in the “moral sclenecs’ — the donuin ntitnowleclgt in his time where questions about the leconontic system! were discussed. b. Smith was not only deeply influenced by Home and Hume's circle of i'rleuds In Edinburgh but had written about astronomy and physics. He was an admirer of Newton. c. Smith‘s “natural system of iibefly” In the nodal sphere is similar to Newton's system in the physical sphere, d. Both Home and Smith thought In terms of gravity. For Smith. market prices “gravitate” towards natural prices." Home also saw the amount or gold in each country flowing between countries like water until it reached a natural icvei the saute in all countries. Mall of the above. 24. Prnl. M said that Locke made a valuable distinction by dividing knowledge into demonstrative and probable knowledge [true] but did not fully break out of medieval'tsnt because his partitioning_c_r_i_ter_ion - degrees of assent - was based on whether the assent was universaI or not rather than based on empirichi evidence" I'm—"F gift/His criterion rested on personal votes and these depended on the “bright reason of the mind". And it" everyone I" voted that it was true that God existed this became a proposition in the domain of demonstrative knowledge. b. His criterion rcsted on the medieval doctrine of original sin. c. His criterious derived from the undicval interpretation of in: gentlest. it. His criterion: was hated on Aristotelian logic. e] His criterion was an early example of symbolic logic, 15. Economic or preeconnmic thinking is much affected by what the state of economic NatuLe Is, that is thought about at any point in time. So Rhyslocratic thinking refleEtethefacts that: a. a major part of the French GNP originated in agriculture. h. France did not have a large volume of international trade. t. France’s internal arrangements had been much affected by mercantilist regulation which under Colbert had reached a highly detailed form. d. the French systet'n oftaa fanning was highly inefficient and corrupt and surely needed changing. /.dtll of the above as. Francois Quesnay ilfifld-ll'id] was physician to Madame de Pompadonr in H49 and the French King in “'55. He wrote dissertations on suppuration, gangrene and fe'vers. |True facts i didn't have time to tell you in class. So you are learning new on this exam] Some commentators leg. Schumpeter] speculate because William Harvey's [JETS-lost] discovery of the circulation ot blood was still fresh in the European conversation iruore n-ue facts]. Queanay was led: a. to see that a healthy circulation of money throughout the 1Whole world would prevt the disease of mercantillsm. Mo analyse the circulation of lcontrnodidcsi and expenditures in the body politic bi-I asing a Tahieaa Econtnni one. c. to invent a social security system for the French. d. to invent medical economics. c. none of the above. 2?. The Physiocrats believed in a single tax. l’impht unique, on landowners: [/afhecause for them only agriculture produced a surplus and this surplus was an unearned one + It came from the productivity oi‘Natnre. So the tax was a fair one as there was no burden to it. it. because they were Marxist revolutionaries and wanted to over throw the landowning class. c. Statement h is an example of anachronistic thinking. Mara wasn‘t even born yet. The Phyisocrats were primitive anarchists whose brains had been rotted by too rntlch French wine, and extramarital sea. d. because when you considered the internal money circulation of France only the landowners had much money. and so sheer expediency required landowners be taxed. e. because Plato had advocated that. 28. Preview? Net was a thsiocratic notion: a. and is not out of line with Aristotle’s metaphor of productivity: an apple tree is productive v it bears an apple. Craftsmen making a table merely change the form of the materials going into the table. b. And was the surplus over costs in agricultural production. - c. In the French for Net Material Product. [Be cargfufleerej. {a} and [b]. e. all ofthe above. 29. One of the advantages of promoting manufgctunis to Hume was that this: a. would give Great liar-laid}; ion—g eliminating comparative advantage in manufactured products. fbfwnuld give Great Britain a labor reserve in wartime. Labor in manufacturing industries could be ' diverted to the armed forces or to production ofconunodities needed to prosecute a war. c. would lead to a permanent export surplus and a build up of die goid needed to finance British output. do would make it possible to increase the money supply without raising prices. a. All of the above. 30.. Hume’s dictum is important as it underlies the positivelnormative distinction that contemporary social sciences lncindlng economics uses. Generalizing broadly, we can represent it... essentially, as saying: a. no scientist can believe in religion. I h. we have to be totally skeptical about everything. c. we should not attempt to predict about the future. if moral judgments are not relevant to explainingr the world ofohservable reality. and empirical facts alone cannot ‘— """ Elrovlde us with our moral beliefs. ‘” ''''''' h e. none of the shove. 3] . David Home defined his “degree of assurance” by: a. the root mean square deviation. h. the covariance of :t on y, divided by the variance ofz. RAral-tr following. Assume an event |p] can occur or not. Deduct the number-of times p did not occur from the times That it did. We can relate this to the number of trials by dividing the remainder by the number of trials. Thus ifan event always occur: it will have a degree of one. If it never occurs it will have a degree of zero. d. the number of faisifieations of a proposition. 1:. using Locke‘s “degrees at assent.“ - r 32, David Home would say a proposition described a tact if: a. goeryhody you asked about the proposition said it was true. #5:“ previous trials or experiments had had one particular outcome. Any time you drop lead in 't-vaterI it sinks. it is a fact that Lead sinks in water. Being a sceptic. and believing only in the evidence of our present senses. be still had a problem finding epistemological support for this proposition when it dealt with tuture droppings or lead in tuturc water. 4:. it was listed in the French Encyclopedia that the Physiocracs had produced. Home had an. intense admiration for French intellectuals. d. All of the above. It. None ol'the above. 33. Hume‘s dilemma was: a. that as he nude a dear d'fitinction between what we now cal] “positive” and "‘norlnsttive’II stated-tentsI he, lost like Adam Smith, found himself unable to even make a single normative statement. If Ethics conld not be grounded in matters oft-ct. than on ethic-ll statement toqu be justified. lb/tbal due to his scepticism, he could not find an epistemoloth basis for statements about tuture outcomes even when such outcomes shalt with the realm of the positive. 1:. that as he was a IWhig:II he could not get a Chair in a Scottish University. lliltnly Tories could occupy professor-ill chairs in Scotland. And he wanted a Chair and didn’t want to be a Tory. Tough. d. that be believed in having an import surplus but he had not figured out how paper money affected the balance of payments. e. None or the above. 34. Home gets mentioned in relation to the Phillips Curve because: a. when Hume wanted to describe the relationship between money and prices he likened it to the way Phillips, a cricketer contemporary to Hume. used to bowl the cricket baiL From then on the curve ' became known as the Phillips curve. So Hume produced the first diagram on this relationship. ,Jt.’ be. correctly. noted that when a country aoqtlit‘ed additional circulating media I"it is only in {the} interval or intermediate situations, that Ithisl is favorabie to industry” c. 11.7”. Phillips who wrote about the curve mtfli his. case minty by quoting Home’s views on the subject. d. an of the_above. e. None of the above. 35, Hume ldon't worry about the accuracy of the date] : a. rovide-d the first clear exposith ofgeneral equilibrium [in Will. . prmided the first clear statement of the {courier theory ofmonqr lid “52]. c. was the first to eapnsit the theory oil comparative advantage. d. was the first to introduce the notion of elasticity. e. All oi'tlte above. 36. Francis Hutches-on: a. wH important as the llrst major philosopher to take the Ideas In Smith‘s Theory ofMorufSeort‘menfi' and make them philosophically consistent. h. a founder ol' the Tory party was an important intellectual predecessor of Adam Smith also a Tory. . as a teacher otitdarn Smith, helped shape Smith's widely influential “political economics" and amoral theories. d. All of the above. e. None of the above. 3?. Smith in thinking about what set of social and political arrangements would but promote the Wealth of Nations came up with; ’ ——_H_h_ _ “ a. model similar to that of the Pbysiocrats whom he had met its France. His model was based on a single tax on land, on implementing the slogan “laissee-taire. Iaitzervpasser‘”. ant! on following in general a Tory approach to social problems. b. a system uflmperial Preferences. Great Britain. said Sndt'b, should build on the Navigation Acts, and regulate imperial Trade for the henth of the British and the British colonlu thus excluding Great Britain‘s international competitors like France and Holland trom Imperial markets. p4 natural system of liberty“. Basically letting producers and consumers do their own thing within a soEll'LaEwork that provided sgpii'tydolpflgerty 1. sogigt Lustice, and a natural copcern {or the poor audnntortunate would not only tacilitate Natutlflsputpnses but would make a natlon wealthier 'Esulisesfiu use.“ d. the idea of a “market order” in which all markets national and international are totally tree and the only role of government Is to provide “police”. a: Carlyle said: “Anarchy plus a constable." e. None of the above. .a‘ 38. Smith in thinking about the division of labor: a. basically foliowed Plato. Piato believed that persons are born with innate skills and an Idea] City was one in which each person could be employed to produce what the innate skills permitted. This is a supplyvslde determination of the division of labor. /h.’ thought it to be bastcally driven by the size of the market. So the division of labor was demand side ,—u-—- --- t_. — . .. --n-—u--_...- driven and would alggsjfilgsize of grew. c. never tit—dught out slittiin what happened as market sizes grew. He, and other classical economists, had a presumption in favor ot thinking that productive entities would simply grow bigger, and the division oi labor become more complex” ' o. no and to. e. All of the above. This looks contradictory but Smith ingeniously married up the demand and supply explanations so a single equilibrium plant size emerged at the intersection oi demand and supply. 39. Smith saw real capital as: a: iaciiitating iabor already in existing production; in other words it made labor more productive. b. abridging labor already in existing production; in other words it resulted in the use or less labor per unit of product c. drawing more labor into the division of production by providing capital goods tor it to use. d. as a consequce of r, adding to the total stock of labor employed In the economy. ll of the above. to. Smith’s “iovlsible hand”; a. was the hand of a benevolent monarch who listened to his ‘intpartlal spectator“ and regulated the economy in the general interest. b. was the hand oi the enlightened capitalist who by seeking to maximize hen-his own wealth. would set in motion wealth making activities that would benefit all. _ 2/1: a metaphor tor the forces that would lead to market pricescoovergiog tonaturglpyioes In a naturat_syscem of lilmo- Such WristE'sE.§E.“.Lh.‘.tstfllliilss9!§mbscterstit? credo - Itself also invisible - that ssh'ei-tuttyfihnshed the order of Nature. d. was the neoPIatonist force that would lead to an ideal division of'labor based on a genetic endowment ot'natnral slclil. e. All of the above. 41. Smith does not use the term “economic growth” oi' course, but into had been aware offlle term and had to produce a criterion to measure economic growth from the Wealth ofNitrions it seems clear that the criterion would have been: a. the size of Great Britain‘s GNP. b. the shoe ol'Great Britain's export surplus. c. the increase in per capita product otter tithe. . the increase In real per caplta consumption over time. c. the rate of increase oi Great Britain‘s stocks or bullion. 42. Smith Is very clear about what condition would not be consistent with the general welfare ota country: for he says: 3,. “no country can be puissant in foreign affairs, shouid it fail to manage the riotous behavior of its rabble.” b. “a country that sacrifices its sovereignty by permitted the iorelgner to liberally own domestic manufacturics forgets I; that defense comes before opulence." /¢ “Ho society can surely be nourishing and happy. of which the far greater part of the members are poor and " ndserable.” d. “A. country that relies on a standing army puts ltsell' Into pawn to the non benevolent instincts oflovers ot pure force, to Individuais whose impartial spectators have been dulled by constant drilling and the brutal ex ercisc ol‘ authority by the petty corpornls of society." -e. Al] oir the above. 43. Adam Smith argued that i=1 flew manufactures, or nc_w_hrao_chg_s ofcommcrcc. or in new practices in agriculture: a. blgh rates of profit wilI be established and will continue due to custom. Moves“ the trade or practice becomes thoroughly established and well icoown. the competition reduces them to the level of other trades." c. it is easy to establish monopoly, and after that vested Interests will continually maintain monopoly returns. d. the law of equal return will not apply as there is zero information about the new innovations. e the onvernment should regularly intervene to ensure social lustlte. —- -u--- 4-- -—- — '5...-|_I_d._,_'_.'H\I_\\d'l.1I'I-I 44. Putting lhe issue in contemporary language1 we can interprel Smith as essentially believing that in early societiest, the relative price of commodities depended on: . their relative marginal labor costs. its land was held in commonI and capital goods inherited1 this out“; snug] today; b. the relative amount of labor “congealed” in products. c. the relative marginal utilities. d. the relative total utilities. e. the respective costs of production. . J 45. Consider there to he three factors Land, Labor and Capital with returns Rent1 wages, and Profits. In advanced societies Smith helieved the relative prices of tivo commodities would depend on: a. the physical units of the three factors embodied in the two commodities. b. the relative amount of labor employed to produce the two commodities. c. the relative amount of wages expended [known as the Wages Fund] expended on the two commodities. . the relative average costs of production for the two commoditim. e. All of the above. 46. The necessary function of government for Emlth were: _, a. defense. _ h. provision of social order: “police” in its eighteenth century sense. c. provision ofjustice. d. providing some commoditifl not In the private interest to produce hut in the public interest to have, e.g. schools and roads when not provided commercially. H Its-ever, pay-mam; shuum he required for such puhlicly provided commodities. /all at the above. 47. The canons of taxation for Smith were: a. equity and proportionality. b. efficiency- c. convenience. d. economy. /All of the above. /_'-.‘ 48..- [i'we were to generalize about Smith‘s conttihution to diEHjIJIJ—tlflll mnry_th_en it_wpplfle_tgs_ay: sf’t'bat he had multipie theories for each of the factors of production and in general did not make a main: contribution to clarifying the important issues of distribution theoty. Some of his ideas did inspire later economists though. b. that he essentially foreshadowed the marginailsts - ail they had to do was to mathematize his ideas. e. that this is unquestionably the most important part of the wealth or Nations. d. lhl and Icl. e. that this was an area of discussion he left completely alone throughout his life. I/ 49. Smith: a. was insistent that progress could only take place in a society which enjoyed the “natural system of liberty." _ - h. thought that only socielitzs that followed the Physiocratic imperative “laissez-faire, misses—passer” would experience economic progress. c/thougltt that almost ail nations even those who had not enjoyed the most prudent and parsimonious governments / would matte progress in “tolerany quiet and peaceful times” due to the “uniform. constant. and uninten'upted effort of each man to better hit-itself."I d‘. was gloomy about the possibility of progress due to the explosive forces of population growth. c. felt the warlike propensities oi the human race would totally swamp out feelings of benevolence so human progress was not possible. 50. “Has Adam Smith Prohiem" originated in German scholarly discussions and: a. was the problem created by Smith‘s belief In free trade. German scholars tended to he protectionist. h. was the problem that Smith had taken over Giambat‘tista ‘v'ico‘s stage theories. Generally German scholars were _ repelled by stage theories of history. _ circferred to lhe heiiefof the Germans that Smith held radically different viewpoints on moral behavior in The Theory ofMorai Sentiments and Tire Wealth afflictions. The former work, according to such scholars, suggested humans were innater altruistic. The latter made hontans out to be driven by self interested motives. d. referred to Adam Smith's Freudian psychological problems. Adam Smith never married1 and was deficient in tihido, and this led him. unconsciously, to favora maternal but puritanical State that looked atter its citizens to promote virtuous activities. c. All are true except c. S_AVE THIS EXAM! REVIEW! ANALYZE ERRORS! IMPROVE EXAM TECHNIQUE F OR THE FINAL! ...
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doc3 - Te i Economics 107 Midterm Examination November 3,...

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