Review questions for material since the second midterm:
1. What are the reasons, according to Marx, for the falling rate of profit over time, capital accumulation, and crises? What are the consequences of the falling rate of profit, capital accumulation, and crises?
2. What was Jevons' main contribution to the theory of exchange?
3. Explain Jevons' determination of the length of the working day.
4. What is the water-diamond paradox? How does Jevons solve it?
5. Discuss and illustrate (using a table) Menger's ideas on total and m arginal utility.
6. Compare and contrast Menger's and Jevon's views on total and marginal utility.
7. What are Menger's views on factor price determination? How can they be used to refute the labor theory of value?
8. Explain Clark's marginal productivity theory and how it was used to counter Marx's claim that labor is exploited under capitalism.
9. What was Edgeworth's main contribution to utility theory? Explain.
10. Explain the contributions made by Edgeworth to production theory.
11. Explain why Marshall felt that economics is the most precise of all the social sciences.
12. Explain Marshall's views on consumer and producer surplus.
13. According to Marshall, what determines prices, supply or demand? Does the time period matter?
14. What factors, according to Marshall, cause firms to become more efficient as they grow? What determines whether they are increasing or decreasing cost industries? Why don't decreasing cost industries eventually become monopolized?
15. What economic conditions set the stage for the emergence of Keynesian economics? Prior to Keynesian economics, what was the prevailing view regarding government intervention to cure recessions? What was the basis for this view? What is the Keynesian view on government intervention? Broadly, how has that view changed over time?