Political Science Final Exam Review

Political Science Final Exam Review - - - - - - - Prisoners...

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- Prisoner’s Dilemma o A stays quiet, B stays quiet o A talks, B stays quiet o A talks, B talks o A stays quiet, B talks - Stolper-Samuelson Theorem: states that under some economic assumptions (constant returns, perfect competition)—a rise in the relative price of a good will lead to a rise in the return to that factor which is used most intensively in the production of the good, and conversely, to a fall in the return to the other factor o Basic theorem in trade theory o Describes relation between the relative prices of output goods and relative factor rewards, specifically, real wages and real returns to capital - Norm: A pattern of behavior actors adopt because it is appropriate to their identity o Thin: actors believe in accordance with the norm in response to social pressure o Thick: actors internalize the norm, acting in accordance with it because they believe it to be just o Insiders and outsiders Norms are bounded by community Threat insiders appropriately Deal with outsiders strategically - Nonrivalness: a good is nonrival when one person’s consumption does not reduce another person’s ability to consume o Example: Lighthouses Music National defense o Public goods are both nonrival and nonexcludable - Nonexcludable: a good is nonexcludable when it is not possible to prevent another persona from consuming o Example: Lighthouse Music National defense - Externality: the affect of a choice of an outsider who does not have any say in the matter o Negative externality: costs outweigh benefits Drive my car Benefits: get where I want to go Costs: gas, pollution o Positive externality: benefits outweigh costs Lance playing bagpipes Costs: Lance tired and winded Benefits: tension relieved, rest of us are spiritually uplifted
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- Mercantilism: exports are good, imports are bad o Consumers: benefit from open trade, large group, poorly organized o Exporters: benefit from trade restrictions, small group, well organized o Incentive to free ride exists o A country’s preferences on trade: Home country closed, other countries open Home country open, other countries open Home country closed, other countries closed Home country open, other countries closed - Bretton Woods: US and allies at 1944 o US expends time and effort to Write the rules Bribe everyone to follow the rules Punish states that stay outside the rules - Boer War: South African War (1899-1902) o Between British Empire and the two independent Boer republics of the Orange Free State and the South African Republic (Transvaal Republic) o Two independent republics were absorbed into the British Empire - Suez Crisis: military attack on Egypt by Britain, France, and Israel (1956) o Followed Egypt’s decision to nationalize the Suez canal after the withdrawal of an offer by Britain and the US to fund the building of the Aswan Dam - IMF: international organization that oversees the global financial system by observing exchange rates and balance of payments, as well as offering financial
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Political Science Final Exam Review - - - - - - - Prisoners...

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