ECS 3003

Attached is the book. The answers are in Chapter 3 and 5. 

CHAPTER 3

1. Q. Marx and Engels claimed that they advocated scientific socialism in contrast to utopian socialism. What was the basis of their criticism of the latter? Was it justified?

2. Q. According to the Marxian labor theory of value, what is the value of a piece of capital equipment?

3. Q. Is there any relationship between the debate over orthodox Marxism and revisionism and the current debate over gradualism versus sudden “shock therapy” in the transition from command socialism to market capitalism

4. Q. How did Hayek respond to Lange’s defense of market socialism?

5. Q. Thoroughly evaluate the arguments for and against the possibility of rational economic

calculation under socialism.

6. Q. Critics of the cooperative economy suggest that it can lead to stagflation. Evaluate the pros and cons of this argument.

7. Q. There are countries whose real per capita output rose between 1989 and 1999 while their HDI declined, and there are other countries for which the opposite is true. Which are these countries and what might explain such outcomes?

8. Q. Although economic performance generally improves with the amount of transition and economic freedom, some countries are exceptions, with high rates of the former but low rates of the latter and vice versa. Which are these countries and what might explain such outcomes? (Hint: use tables 3-1 and 3-2 to support your answer)

CHAPTER 5

1. Q. How did the United States play a fundamental role in the institutional development of market capitalism?

2. Q. What led to the original movement toward regulation of the U.S. economy?

3. Q. How did the regulation movement of the 1960s and 1970s differ from the original movement, and how did the modern deregulation movement relate to these different forms of regulation?

4. Q. What are some of the reasons for U.S. leadership of global technological change?

5. Q. What are some reasons that the United States has greater degrees of income and wealth inequality than other high-income market capitalist economies?

6. Q. Some studies suggest that higher income inequality is more readily accepted by the U.S. population than it would be in other high-income countries. Why might this be true?

7. Q. Why might economic growth and higher consumption levels not lead to greater happiness? Why might such arguments be relevant for the U.S. economy?

8. Q. How has the United States attempted to reform its financial sector to avoid a repeat of the financial crisis of 2008 and how likely is it that these will succeed in doing so?