Review Questions for Midterm 2
Economics 493/593
Fall 2007
1. Explain Ricardo's theory of comparative advantage.
2. Explain Ricardo's theory of distribution and why Ricardo believed that rent and profit are inversely related and that that profit and wages are inversely related
3. How does hedonism differ from utilitarianism?
4. How did Bentham's utilitarianism lead him to egalitarian reform proposals? Why didn't he advocate complete equality of income? What problems are associated with Bentham's utilitarianism?
5. According to J.B. Say, what was the fourth factor of production? How did the addition of this fourth factor of production this remove potential sources of class conflict from classical theory?
6. What is Say's law? What are the implications of Say's law?
7. Discuss Nassau William Senior's beliefs concerning positive and normative economics.
8. Discuss Nassau William Senior's views on the poor laws. What policies did he help to enact as a member of the Poor Law Inquiry Commission?
9. How did Nassau William Senior's views on rent differ from Ricardo's? How does this reduce class distinctions based upon the receipt of rent?
10. How do Mill's views on utility differ from Bentham's?
11. According to Mill, what are the three types of goods? Which is the most common?
12. What are Mill's views on government intervention?
13. Define and explain the following modes of production: Capitalism, State Capitalism, State Socialism, Utopian Socialism, Anarchism, Marxian Socialism (including the six stages of production), and Syndicalism.
14. What were Marx's views on the writings of Smith, Ricardo, Mill, Bentham, Say, and Senior? Why was he critical of much of what they wrote?
15. How are exchange values determined in Marx's framework? What solution does he suggest for the problem that the prices of goods differ from the value of the labor used in their production when capital/labor ratios differ across industries
16. Explain Marx's theory of exploitation.
17. What are the reasons, according to Marx, for the falling rate of profit over time?
18. Did Marx believe in Say's law? Explain.
19. What are cyclically recurring fluctuations and disproportionality crises?
20. What are the concentration and centralization of capital and how to they lead to the failure of capitalism?
21. Explain the three interpretations of Marx's belief that there would be increasing misery of the proletariat as capitalism developed.
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