Economics 515 AU12 Midterm 3 Review The exam will have 10, 10-point questions on it from the questions below. 1. Explain briefly how guns and steel aided in Europeans’ attempts to conquer the native population of Africa and the Americas. How did germs work in favor of European conquest against the Incas? How did germs work against the Europeans in their imperialist efforts in Africa? 2. Describe the attempt of Europeans to colonize Africa depicted in Guns, Germs, and Steel. Specifically, how successful were they in South Africa? What happened when they encountered the Khoisan tribes?
How about the Zulu? Were they able to successfully settle the interior? Why or why not? 3. List 3 positive impacts on standards of living due to industrialization. List 3 negative consequences of industrialization. Did British Standards of Living rise 1800-1850? Why or Why not? How about after 1850? 4. What do data on wages tell us about changes in the standard of living during the Industrial Revolution? How about changes in consumption? In what way does looking at biological measures tell a different story? 5. (NOTE: NUMBERS MAY CHANGE ON EXAM! ) Suppose the U. S. an produce 100 pairs of shoes or 1,000 lines of computer code per day per worker and Malaysia can produce 50 pairs of shoes per day per worker or 10 lines of computer code per day per worker. What is the opportunity cost of a pair of shoes in the U. S? What is the opportunity cost of a line of computer code for Malaysia? In the production of what good(s) does the U. S. have absolute advantage? In the production of what good(s) does Malaysia have absolute advantage? In the production of what good(s) does the U. S. have comparative advantage? 6. What is the Hecksher-Ohlin Theory of Comparative Advantage?
Apply this model to explain trade between Great Britain and the United States in mid-nineteenth century. 7. What were the Corn Laws? Explain how and why they were finally repealed. List the major provisions of the Cobden-Chevalier Treaty (Anglo-French Treaty). What is the “most-favored nation” clause? 8. What was the Zollverein? List 2 other similar arrangements in the Free-Trade Era of Europe. Who were the Junkers? How and why did they successful lobby for protectionist tariffs? Who agitated the passage of the Meline tariff of 1892 and why? 9. Describe important developments in communications and transportation during the Transition Period.
Talk about how the backward linkages and forward linkages from these innovations increased growth. 10. Provide three detailed examples of how government interventions promoted economic development during Transition period, 1830-1870. 11. In what two aspects was the 2nd Industrial Revolution different than the 1st Industrial Revolution? List 3 inventions of the 2nd Industrial Revolution. What was the American System of Manufacturing? List 2 industries in which this system was utilized by the Second Industrial Revolution. 12. Discuss the increase in steel production during the Second Industrial Revolution.
Specifically, what technological improvements led to greater mass production? Quantify this increase. List 2 forward linkages from the steel industry. 13. Discuss how Great Britain’s macroeconomic growth lagged that of other countries since the 2nd Industrial Revolution. Which countries had higher growth rates and due to innovations in which industries? Compare the growth of British per capita income to that of other nations. 14. In what ways were the German and French educational systems superior to the British system by the 2nd Industrial Revolution? How was the corporate tructure in U. S. and German firms superior to the predominant structure in Great Britain? 15. Provide three detailed explanations for the entrepreneurial failures resulting in the British Climacteric. 16. Explain how increased trade flows and the prevalence of Bills of Exchange, led to the formation of merchant banking. Explain the process of discounting bills. Explain the formation of the House of Baring. 17. With respect to the International Gold Standard, what is the mint par exchange rate? What is the market exchange rate? What is arbitrage? What are specie points? 18.
What were the advantages of the International Gold Standard? What were the disadvantages? 19. Describe the general patterns of foreign investment as markets became more integrated in the late nineteenth and early twentieth centuries. From which countries did capital flow out of? And into which countries? 20. International labor migration flows were significant from 1840-1914. Describe the general trends during this era. (Where were immigrants coming from and going to and when? ) What were the push factors? What were the pull factors? Which measurable variables had a significant correlation with high emigration rates?