FINAL EXAM REVIEW - Examples Edition

Question 1

Sherwin Rosen

Answer 1

coined the term “economics of superstars” ex. work hard in 20s to enjoy 60s

Question 2

Alexander Graham Bell

Answer 2

invented telephone; founder of AT&T

Question 3

Defacto Beers

Answer 3

diamond supplier until 1990s (monopoly)

Question 4

John Bates Clark

Answer 4

criticized monopolies, believed competition was needed and that monopolies would charger higher prices and limit output

Question 5

E.H. Chamberlain

Answer 5

Harvard; supported capitalism; emphasized merits of moComp which include how everyone has different preferences, so product differentiation is necessary

Question 6

J. Robinson

Answer 6

Cambridge; Emphasied demerits (inefficiencies) of moComp -> including excess capacity (produces less than min. ATC) and markup over marginal cost

Question 7

what kinds of companies are natural monopolies?

Answer 7

public utilities i.e. electricity, telecomms, gas; pipelines

Question 8

Farmer Jack is an example of what

Answer 8

production function; cost of labour

Question 9

Turgot

Answer 9

analyzed labour markets, proponent of commission-based wages

Question 10

Ricardo

Answer 10

accepted Turgot’s ideas

Question 11

Von Thunen

Answer 11

labour markets: productivity and wages are based of its distance from central market i.e. rental land prices

Question 12

Johan Huizinga

Answer 12

play, ritual, work

Question 13

William Petty

Answer 13

devised a way to measure a nation’s income that was not in use until 1930s

Question 14

Wesley Clair Mitchell

Answer 14

Co-founded the NBER; contributed to benefit of great depression by analyziing business cycles and economic fluctuations

Question 15

Simon Kuznets

Answer 15

developed research on national income accounting and GDP
also: secular growth of economics as time passes

Question 16

Ben Bernarke

Answer 16

helped aid through rsrch on central banks and monetary policy

Question 17

Milton friedman

Answer 17

neoclassical economist who argued lack of money supply was a cause of great depression

Question 18

China ghost towns are an example of what

Answer 18

large inventory investments -> economy wasting resources

Question 19

Black Tuesday

Answer 19

Beginning of the Great Depression

Question 20

Fixed Business Investment

Answer 20

capital equipment i.e. machines, tools

Question 21

Residential Investment

Answer 21

structures i.e. bdgs, houses, factories

Question 22

Inventory Investment

Answer 22

work in process

Question 23

Fisher Equation

Answer 23

implications for business cycle theory

Question 24

Lyndan B. Johnson

Answer 24

Vietnam War; Great Society Program

Question 25

Paul Volcker

Answer 25

controlled inflation by restricting monetary policies and increasing interest rates -> may lead to some unemployment in beginning but later prices are controlled

Question 26

Arnold J. Toynbee

Answer 26

rise and fall ofcivilizations to study growth/decline factors

Question 27

James Watt

Answer 27

invented Steam Engine during IR -> first applied to textiles in SK

Question 28

Malthusian Dynamics

Answer 28

kinda like maslow’s hierarchy. gotta survive first to take in love and support people etc.

Question 29

Peter lindert

Answer 29

introduced free public education for primary schools in the US

Question 30

Gary Beckel

Answer 30

wrote on changes in the premium (benefits_ of college education

Question 31

Robert Fogel

Answer 31

estimated in Great Britain 1 in 5 ppl were malnourished, so pushed for increase in health care expenditure where H is an investment to increase productiity

Question 32

Michael Kremer

Answer 32

theorized that over the course of human history, growth rates increased as the world’s population increased -> therefore more populated regions grow faster than less populated ones