PHIL/ECON 205: Wealth Creation 3 October 2011
Exam #1: Study Guide
Please remember to bring a BLUEBOOK. All of your answers must be written in your bluebook.
Some of the points will come from multiple-choice questions. Be sure to review past quizzes, as well as the basic concepts of exchange (from the “Fritz and Lou” discussions).
The majority of points on the exam will come from the essay questions. Each essay answer should be about one page long (in a full-sized bluebook). In each case, your answer should defend the position you take (either (a) or (b)), and consider the perspective of at least two of the authors listed beneath that question. Your answer WILL be graded on the quality of your grasp of the relevant issues, the quality of your argument, and your comprehension of the authors discussed. Your answer will NOT be graded on the position you defend!
You will be asked to answer TWO of the following questions. Do NOT assume you will be given a choice as to which two.
(A) “Property rights are beneficial—but especially if you’re (a) rich (b) poor.”
Imagine and describe a society with very weak property rights, or no property rights. Which members of that society would benefit most from a change to stronger property rights?
Consider at least two: De Soto, Aristotle, Hardin, Locke, Schmidtz
(B) “Markets work to everyone’s benefit—but especially if government control is (a) prevalent (b) limited.”
Imagine and describe a society governed with a high level of discretionary power, to change laws, expand regulations, facilitate selected industries, raise taxes for stimulus spending, etc. Who benefits from this arrangement? Who would benefit from reducing that power?
Consider at least two: Hayek, Bastiat, Friedman
(C) “A prosperous economy requires (a) a plan devised by a central authority (b) a lot of free, individual planners.”
Imagine and describe a society in which the production of wealth (food, clothing, housing, etc.) is directed mainly by a central authority. What does that central authority have to know in order to make a plan? What does it have to do to implement a plan? Who benefits from all of this centralized planning? Who would benefit from less centralized planning?
Consider at least two: Read, Smith, Hayek