midterm exam - Jennifer Edwards Economic History of Europe...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Jennifer Edwards Economic History of Europe Prof. Alpert October 17, 2010 1. Utility maximization is important because society should aim to maximize the total utility of individuals, aiming for "the greatest happiness for the greatest number of people" One variable is religion. People in the pre mediaeval were sensible of the content from the religious elite. There were differences on the European and Middle Eastern. The Islam from the Middle Eastern approach has intended to focus attention on origins such as: ideas, groups, religious practices, etc. to explain its history. While Europeans focus on institution. Another variable is the diffusion of power and revenue sources among elite households on the one hand; and the physical propinquity of rulers, their ability to reassign revenue resources, and the relative absence of restraints on their seizure of property on the other. 2. Under North’s conceptual, present and future are related by continuity of institution. He integrates historic through his adoption of concept of path dependence. North defines property rights, law, customs, codes of conduct, taboos and traditions, from organizations- political parties, firms, farms, and other groups. Plus, organizations frequently must act on incomplete information and process. 3a. In Holland Opportunity cost of 1 pounds of cheese = 2 gallons of wine and the opportunity cost of 1 gallons of wine = ½ pounds of cheese. In Italy Opportunity cost of 1 pounds of cheese= ½ gallons of wine and the Opportunity cost of 1 gallons of wine = 2 pounds of cheese. Absolute advantage in production: World production= 7 pounds of cheese and 5 gallons of wine. Neither countries have the overall least cost of production but they have the least cost for certain products. Opportunity cost of 1 gallons of wine = ½ pounds of cheese and the Opportunity cost of 1 pounds of cheese= ½ gallons of wine The Comparative advantage is that Holland should export wine and Italy should export cheese. 3 b. Therefore: Holland can export 2 gallons of wine and it is traded for 4 pounds of cheese if so they can domestically do1 pounds of cheese. Italy exports 6 pounds of cheese and it is traded for 12 gallons of wine if so they can do domestically 3 gallons of wine. 4. The overall benefit a society composed of consumers and producers receives when a good or service is bought or sold given a quantity provided and a price attached.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
It is important because when the supply of good expands or increase the price falls and the consumer surplus will increase and this benefits two group of people. Examples: Farmers will move to the services industries since there was an agricultural surplus in labor. Wages in the services market were greater. This means people will switch industries to gain for their wage and marginal product on that industry. 5.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/21/2011 for the course ACCT 101 taught by Professor Hollies during the Fall '11 term at University of Bridgeport.

Page1 / 5

midterm exam - Jennifer Edwards Economic History of Europe...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online