Political Economy 3020
STUDY GUIDE FOR FINAL EXAM
Friday, December 13, 8 a.m Noon
Identify and describe the historical significance of six of the following:
(1 hour / 30 points.)
Jack Melamed, Alyssa Zeutzius, Merrill McKenna
Group Assignment 2
Our article addresses the Advisory Committee on Immunization Practices of the
Centers for Disease Control and Preventions recommendation that boys and young men
be vaccinated against human
Prisoners Dilemna- paradox of cooperation, dominate strategy (always defect),
Public Good- (marsh= cost of fixing the marsh outweighs the benefits from fixing it),
can free ride if one lets others fix problem, selective incentives could enco
Otto Von Bismarck:
Chancellor of German 1871-1890
o After a series of wars against Denmark in 1864 and against Austria 1866, N
German Confederation was formed in 1867 under Prussian control.
Bismark directed foreign policy and maint
Study Guide for First Exam
I am the state Letat cest moi
Absolute ruler: system where ruler claims sole and uncontestable power
Although he made all decisions himself, he still depended upon his citizens for his
Post hoc, ergo propter hoc is a Latin phrase meaning After-therefore-because of. This
is falsely used as a simple explanation for many historical events. Essentially it means
because X and Y occurred, and later Z came into existence, Z was caused
The Persistence of Capitalism
It is convenient both to blame the Great Depression on classical liberalism run amok; and
to use the subsequent recovery as a justification as a triumph of government regulation
Machiavelli discusses at least five different ways in which an individual can become a prince.
One way, for example, illustrated by Agathocles who became king of ancient Syracuse in Sicily,
is to seize power through utterly wicked means. Another way, illu
7. According to Mill, an adult has a right to absolute liberty of self-regarding conduct. If
so, it seems that an adult should be free to sell himself into slavery. Yet Mill firmly
rejects this as impermissible. Can you explain why? Or is he just being in
5.) Locke claims that "every man is born with a double right: first, a right of freedom to his own
person . Secondly, a right, before any other man, to inherit with his brethren his fathers
goods"(p. 98, section 190). By virtue of the first right, a man i
According to Machiavelli, the ancient Greek writers tell how rulers should be entrusted
to Chiron the centaur, to be raised carefully by him (The Prince, p. 61). What does being raised
and taught by Chiron tell us about the character of a strong and ef
Machiavelli insists that the prince must at all costs avoid incurring the hatred of his subjects.
But he also says that the prince should take steps to inspire fear in the people if required to
maintain power. What is the difference between being hated by
According to Machiavellis view in chapter 25 of The Prince, how does a strong and effective
prince (possessing virt) deal with fortuna? Can such a prince completely control fortuna?
Explain your answer. What does Machiavellis view imply about the value of
1.) John Locke, in his Second Treatise of Government, argues that reasonable people consent
to leave the idyllic "state of nature" to enter a civil society or "commonwealth." Does their
consent to leave it suggest that the "state of nature" as he conceive
7.) According to Lockes theory, legitimate government is destroyed or "dissolved" by tyranny.
The citizens of the commonwealth have a basic right to revolt against tyrannical leaders, Locke
says, in order to restore a legitimate government that will prese
4. Mill tells us in Chapter III of On Liberty that liberty is the only unfailing and
permanent source of individuality, and that individuality . is one of the principal
ingredients of human happiness. What does he mean by individuality and why is
1. In On Liberty, John Stuart Mill briefly describes the purely self-regarding sphere of
action where the individual has a moral right to absolute independence or liberty. Using
his description, give an example of a self-regarding action. Is public expres
- Why does the natural resource curse exist, according to Sachs and Warner? What are
their major arguments concerning the resource curse?
1. Crowding out
2. Decreased export competitiveness
3. Less entrepreneurial activity
4. Less education
5. Less innova
- According to Broz, why did the UK need other countries to maintain the gold standard?
- Reasons for the decline of Keynesian ideas after 1970s, particularly ideas about the
natural rate of unemployment.
Governments gradually, and in many cases grudgingl
- What is contrast Acemoglu draws in types of institutions put in place by European
colonizers which kinds of institutions were better for development and why?
Extractive vs Developed
-Diamonds specific explanations for why geography is so important in ex
- What were similarities of countries hit by financial crises in the 1990s?
1. few regulatory checks on the lending practices
- How did Asian banks put their economies at risk?
Unholy trinity, bank borrowing from abroad to give expensive loans ER risk, ri
- What is IMF recidivism? Why is it a problem? What kind of evidence exists that shows
how effective IMF programs are?
When a country returns to IMF for borrowing. Because it highlights problems with IMF lending
structure. The completion of programs. Comp
Partisan Same as electoral model but in the partisan model, however, different political parties
pursue distinct macroeconomic objectives. Some parties use monetary policy to reduce
unemployment and are forced to float their currency. Other parties use mo
- Patterns of FDI in postwar period why do MNCs exist? What are potential drawbacks
and benefits of FDI?
Why do MNCs Exist:
Market imperfections drive internalization of transactions: Specific assets and vertical
integration, intangible assets and hori
Be able to identify the possible causes behind the collapse of Bretton Woods in the 1970s,
especially potential political explanations
$ became so popular that there were more claims on gold reserves than actual gold.
Political France argued it favo
Locational incentives for investment- some examples
Locational advantages derive from specific country characteristics that provide opportunities to
acquire raw material, produce or sell in foreign countries. Some locational advantages are:
What is current account, capital account?
Current account - records all current (nonfinancial) transactions between one countrys residents
and the rest of the world.
Capital account - registers financial flows between a country and the rest of the world.
- Horizontal integration and vertical integration of investment
Horizontal integration Also when an MNC produces the same product in many different
countries. They do so when a cost advantage is gained by placing a number of production
facilities under co
Machiavelli seems to think that it might be possible for a ruler with a high degree of virtu to
eventually always act as if he were morally virtuous in the traditional sense. After having
displayed for a time his ability to use beastly means to effectivel
*9. `Suppose that an individual suffers some natural penalties as a result of her purely
self-regarding conduct. Given that these natural penalties are harms or perceptible
injuries inflicted by other people on the agent of the self-regarding conduct, are