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1 Exam 3 - Fall 2014 Code Name: Part 1: The details (70.5 points. Each question is worth 2 pts each unless noted.) # s 1 4: You are transported to the alien world of Gerbilstan. The inhabitants, intelligent Gerbils, are stuck in a classic Malthusian relationship. 1. Gerbilstan starts at point.1. on the chart at below right. Point.1. is a Malthusian equilibrium. What characterizes this (and all) Malthusian equilibrium? a. Income/capita is 'ing at a rate equal to the population. ex. +2% = + 2% b. Income/capita is 'ing at a rate equal to the population + technology. ex. +4% = + 3% + 1% c. The birth rate equals the increase in population. ex. 150 per 1,000 people = 150 per 1,000 people d. The birth rate equals the death rate. ex. 150 per 1,000 people = 150 per 1,000 people 2. Next, a one-time epidemic wipes out roughly 30% of the Gerbil population within one generation. On the chart at right, plot and label point.2., the situation Gerbalstan is in shortly after the epidemic runs its course. 3. What is true at point.2. (after the epidemic has run its course)? Check any and all that apply. (3 pts, -1 per incorrect blank) Deaths = Population Deaths > Population Living Standard (Real GDP/capita) $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 1 Deaths > Population + Births Deaths > Births Deaths = Births $ Population (Millions) Deaths < Births 4. Indicate what happens, over the next several generations (ex. 3 7), on the chart above. Point.3. is generation 3, etc. 5. What does Clark argue is true of Western Europe relative to China (and most of Asia)? a. Europe s birthrates were, on average, lower than Asia s. Rich Europeans had higher birthrates. b. Europe s birthrates were, on average, higher than Asia s. Rich Europeans had higher birthrates. c. Europe s birthrates were, on average, lower than Asia s. Rich Europeans had lower birthrates. d. Europe s birthrates were, on average, higher than Asia s. Rich Europeans had lower birthrates. 1

2 6. How did # 5, above, according to Clark, affect economic development? a. Talent, human capital (ex. literacy), and wealth became more widely distributed in Western Europe than in Asia. b. The rich in Europe had a harder time using families to keep large enterprises together. Europeans, in response, invented Joint Stock Companies. c. Rich Europeans could easily use their families to keep large enterprises together. This meant Europe could more easily achieve the economies of scale that industrialization offered. d. Overall, labor was scarcer in Europe providing Europe with an incentive to industrialize. Europe, however, had plenty of low skill workers to operate its machines and factories. # s 7 8: The graphs at right show Britain s GDP/capita (top chart) and Britain s populations from 1340 to Draw a line showing (roughly) what happened to Britain s RealGDP/capita over this period. 8. Draw a line showing (roughly) what happened to Britain s population over this period. 9. The putting out system was a system in which: a. Britain relied on temporary Irish and Flemish labor to operate most of her factories. b. one individual would oversee large amounts of production, but the individual production processes would take place in individual homes and workshops c. an inventor would retain the sole license to build his or her machines. The inventor would then rent the machines to other people and businesses. d. Britain used her colonies for raw materials, then further processed those materials in Britain. 2

3 10. Which process was being done in the first real factory? a. Cast iron and steel was being produced from iron ore. b. Cotton thread was being woven into cloth. c. Seeds were being removed from raw cotton. d. Cotton was being spun into thread. 11. Which of the following a reason to build a factory according to the film; Pants For All? a. to protect and keep secret the equipment inside the factory b. Royalist forces during the Civil War tended to burn houses but left larger structures alone. c. Parents thought factories would provide their children better learning than working at home. d. Taxes were based on what an individual produced, but not what their workers produced. 12. Which of the following is another reason early factories were first built? a. New inventions greatly increased efficiency, but also required very large scale production. b. The invention of coal fired kilns meant the price of bricks fell to about 25% of their former cost. c. In the late 1700 s, inventors learned to mount water wheels vertically rather than horizontally. d. The British military found it easier to procure supplies from large suppliers. 13. What is the name of the machine at right? 14. What is this machine making or doing? Be as specific as possible? 15. What is the name of circled part(s)? # s (1 pt each) Number the English rulers in order of their rule from 1 st to 8 th. 16. Henry VIII 17. Charles II (Stuart) 18. Oliver Cromwell 19. James I (Stuart) 20. Charles I (Stuart) 21. William and Mary 22. Elizabeth I (Tudor) 23. James II (Stuart) 23 1 / 2. _ 9 David Cameron 24. Who came to power in England s Glorious Revolution? 25. How did the above come to power in England s Glorious Revolution? a. God was seen as favoring England after freak storms sank two invasion fleets in rapid succession. b. English Parliamentary leaders invited a foreign ruler and his English wife to take over the crown. c. France successfully invaded England. The new king, however, soon broke away from France. d. Parliamentary forces became deeply religious and finally defeated the king on the battlefield. 3

4 26. Roughly when was England s Glorious Revolution? 27. Why is the term; Glorious Revolution used? a. Englishmen finally received complete freedom to practice whatever religion they pleased. b. Both the English rebels and the French were very happy with the outcome. c. While England chose a devout Catholic to rule, he/she strongly supported Protestant causes. d. The change was non-violent and gave England a powerful, yet restrained government. 28. When was the Magna Carta signed? a b c d e f When was the (English) Bill of Rights signed? a b c d e f # s (2 pt each) Tell me about the (English) Bill of Rights and the Magna Carta by matching each with its characteristics. 30. Magna Carta 31. Bill of Rights a. While the monarch could guide policy, an elected Parliament became the ultimate political authority. b. formed an alliance between Catholic Spain and Protestant England against the Protestant Dutch c. made the English King, rather than the Pope, the head of the church in England d. allowed the English government to convert land from common use to private use e. The monarch agreed to respect certain rights and let the barons have a say in government policy # s (1.5 pt each) Match each ruler with a major feature of their reign. 32. Henry VIII 33. Charles I 34. James I a. was ruler when Spain sent the Armada against England b. said he did not like absolutism, but was nonetheless declared Lord Protector c. broke with the Catholic church & created the (Protestant) Church of England. d. survived an attempt, by Guy Fawkes, to assassinate him and Parliament e. was beheaded 35. Which of the following is true of the Dutch Republic? The Dutch Republic: a. was split in two geographically. Roughly ½ was in the low countries, and ½ in Southern Sweden. b. was only a few miles downriver from some of Europe s best coal deposits. c. developed the first large textile factories. These, however, quickly relocated to England. d. was ruled by a Catholic dynasty, but was very tolerant of Protestants. 4

5 36. What is another thing that is true of the Dutch Republic? The Dutch Republic: a. became rich from inflows of silver from its colonies. This, however, discouraged innovation. b. exported most of its coal to England rather than using it at home. c. lacked natural defensive borders. It suffered from many foreign invasions. d. was too large and geographically divided to be ruled effectively. 37. What else is true of the Dutch Republic? The Dutch Republic: a. had kings with nearly absolute power, but these kings used their powers in a very restrained way. b. had better financial and commercial institutions than England for much of the 1600s. c. was technically a part of France, but made its own domestic policy very independent of France. d. was a true democracy in which every person age 19 and up, both male and female, voted. 38. (6 pts) Circle and label (i.e. give me the name) of 3 areas, discussed in class, that had a system of good property rights and restrained government prior to Do not circle England or Great Britain. 5

6 Essay Question : Answer 1 of the questions below (30 points). 1. In what way were the machines invented in the early Industrial Revolution revolutionary? In what ways were these machines more evolutionary? Discuss the machines themselves, what powered them, and the production system in which they were used. 2. Draw a graph showing various types of governments classified based on how much power they have and how they use that power. Make sure your graph roughly matches what we did in class. Also, give your axes very specific labels. Indicate the optimal region on this graph according to a modern economist, namely one that thinks that a system of good property rights is the key to long-run development. Briefly explain why this is the optimal point. Show, approximately, where the various rulers, during the 1600 s, were on the graph. Begin with the first Stuart king. End in the late 1600s. Briefly explain why you plotted each point where you did. This should include a brief history of the period. 6

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