Review Questions for Midterm 1
1. Why does the book choose to begin the study of the evolution of economic thought around the year 1500?
2. What factors were important in the transition from feudalism to capitalism? Discuss each factor.
3. Discuss the main features and policies associated with mercantilism.
4. Why did the mercantilists focus on exchange as the source of wealth? What was the role of the government under mercantilism?
5. What was Thomas Mun's major contribution to mercantilist ideas?
6. Discuss the ideas and contributions of Jean Babtiste Colbert.
7. Discuss the ideas and contributions of Sir William Petty.
8. Who were the Physiocrats? What policies did they advocate, and what problems did their policies address?
9. Discuss the ideas and contributions of Francois Quesnay. Explain Quesnay's Tableau Economique. Why is the table important in the history of economic thought?
10. Discuss the ideas and contributions of Anne Robert Turgot. Why was Turgot dismissed from his duties as finance minister in 1776?
11. Discuss the ideas and contributions of Richard Cantillon
12. Discuss the ideas and contributions of David Hume.
13. Discuss the ideas and contributions of Sir Dudley North.
14. What is the price-specie flow mechanism and why is it important? How do the ideas of Cantillon and Hume differ on this topic?
15. What is the essence of the classical school?
16. What is the main message of Adam Smith's book The Theory of Moral Sentiments?
17. According to Adam Smith, what are the four stages of economic and social development? What are the characteristics of each stage? How did the progression through the stages illustrate the invisible hand at work?
18. What is the role of the state according to Adam Smith? What makes for good taxes?
19. What reasons did Adam Smith give for increases in productivity brought about by the division of labor? What is the most fundamental division of labor? How does productive labor differ from unproductive labor, and why did he make this distinction? Ultimately, what is responsible for the wealth of nations?
20. Why does Adam Smith believe in free international trade? Are tariffs ever acceptable?