SP22 Exam 2

Name: ___________________________ OSU dot #: _______________________ Midterm 2 SP22 Econ 4130--Cooper Part 1—Multiple Choice: Choose the 1 best answer, 2 points each. 1. In Guns, Germs, and Steel, Episode 2, did Ataxalpa, the Incan leader, underestimate or overestimate the threat of the conquistadores? A. Underestimate B. Overestimate C. Both D. It was unclear 2. What advantages did horses provide the Conquistadors? A. Speed: could run down the Inca in the open B. Platform for battle C. Intimidation as Inca had never seen such powerful beasts D. All of the above 3. Which of the following is NOT an example of a poor French domestic economic policy? A. The College of the Fishery B. Over-regulation C. Sales of offices D. All of the Above were poor economic policies of the French Crown.

Name.###___________________________ 4. Which of the following was NOT a way the Spanish repudiated their debt? A. Extended the term of bonds B. Suspended interest C. Wrote down principle D. All of the above were ways they repudiated the debt 5. Which of the following was NOT given as a reason for the Great Divergence? A. A series of calamities resulted in the loss of Chinese Iron making B. Chinese Mines were dry, which meant mining coal was avoided; meanwhile British mines were wet leading to the invention of the steam pump/engine. C. Chinese stoves were less efficient than those in Europe D. All of the Above were reasons for the Great Divergence 6. Why was the Price Revolution bad? A. Erosion of value of wealth holding B. Decline in purchasing power of wage earners C. High prices for food D. All of the Above 7. According to Nathan Nunn the Atlantic Slave trade had the following effects EXCEPT A. Increased cooperation of diverse groups B. Lower government development in the 19th century C. Lower per capita incomes in the 20th century D. All of the above were cited as effects by Nunn

Name.###___________________________ 12. Which of the following was NOT a result of the New Husbandry? A. Increased divorce rate B. Better fed livestock produced more manure C. Fallow was eliminated D. Soil renewed by nitrogen fixing crops 13 Which of the following was not a way in which Britain's geography favorable for industrialization? A. Accessible deposits of iron and coal B. Being an island isolated them from the land wars of the rest of Europe. C. Favorable conditions for growing cotton. D. Good access to water transportation. 14. Which of the following is a reason why double entry bookkeeping was important? A. Standard way of evaluating the financial position of a firm. B. Necessary for the development of credit markets. C. Allowed for absentee ownership and thus larger firms D. All of the Above 15. What do data on wages during the Industrial Revolution show? A. Wages grew throughout the First Industrial Revolution. B. Wages fell during the First Industrial Revolution. C. Wages did not rise until late in First Industrialization D. There is no data available.  

Name.###___________________________     Part 2—Short answer: 5 points each. 1. In the dual sector model discussed in class what industries were in the traditional sector during the 1 st IR? What industries were in the modern sector? If 90% was initially in the traditional sector and it grew at 2% per year, and 10% was in the modern, growing at 5% per year, what percentage would be in each sector after 15 years (table below)? What would be the growth rate of the entire economy in that 15 th year? Year Units of X Units of Y Total Units % of Sector X of Total % of Sector Y of Total 1 90.000 10.000 100.000 0.900 0.100 2 91.800 10.500 102.300 0.897 0.103 3 92.718 10.920 103.638 0.895 0.105 4 93.645 11.357 105.002 0.892 0.108 5 94.582 11.811 106.393 0.889 0.111 6 95.527 12.284 107.811 0.886 0.114 7 96.483 12.775 109.258 0.883 0.117 8 97.448 13.286 110.733 0.880 0.120 9 98.422 13.817 112.239 0.877 0.123 10 99.406 14.370 113.776 0.874 0.126 11 100.400 14.945 115.345 0.870 0.130 12 101.404 15.543 116.947 0.867 0.133 13 102.418 16.164 118.583 0.864 0.136 14 103.443 16.811 120.253 0.860 0.140 15 104.477 17.483 121.960 0.857 0.143 16 105.522 18.183 123.704 0.853 0.147 17 106.577 18.910 125.487 0.849 0.151 18 107.643 19.666 127.309 0.846 0.154 19 108.719 20.453 129.172 0.842 0.158 20 109.806 21.271 131.077 0.838 0.162

Name.###___________________________ Part 3—Critical Thinking: 1-10 point essay. Rubric on next page. Based on our study of the First Revolution, what 2 policies would you recommend to a country stuck in persistent poverty which has not yet industrialized? Defend your answer as to why these policies are important with details from the course.

Name.###___________________________