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ISU - POL 140 - POL 140 Quiz 3 Study Guide - Study Guide

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ISU - POL 140 - POL 140 Quiz 3 Study Guide - Study Guide

School: Illinois State University
Department: Politics
Course: Introduction to the Politics of Africa, Asia, and Latin America
Professor: Osaore Aideyen
Term: Spring 2016
Tags:
Name: POL 140 Quiz 3 Study Guide
Description: This is a filled out version of the study guide that Professor Aideyan sent us. I've included quotes right out of the text book and the pages they came from (as well as summarizing ideas). Hope this helps :)
Uploaded: 03/03/2016
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background image   POL 140 Section 04 – Introduction to the Politics of Africa, Asia & Latin America Quiz 3 Study Guide February 23, 2016 Our third quiz covers all of chapters five and seven of the course text. My expectation is that after diligent reading of the chapters we will be able to do the following: Chapter 5. Political Economy 1.      Define political economy and understand the relationship between states and  markets Political economy is the balance between political and market forces within a  country and is critical in determining whether it will meet the minimal  conditions to be a good society. States make market systems possible by  making the ground rules that permit market systems to work at all,  structuring how buying and selling takes place. (PAGE 112) 2.      Distinguish between markets and market systems Markets have always been with us, but market systems have not. Markets  are simply people engaging in exchange while the term market system refers to an economy in which production for profit is intended for and coordinated  through private exchanges between buyers and sellers. (PAGES 109-110) 3.      Understand the difference between the extensive and intensive growth of markets Extensive market systems are ones that diffuse over the entire globe  (countries trading with each other) and intensive ones involve more social 
background image transactions. (PAGE 110) On this page also includes examples of rules  states can make to promote or inhibit each type of growth. 4.      Show why market systems need states in order to thrive In a completely free market, people respond to shifts in the market, in the  balance between supply and demand, but no one controls it. Market systems  need states to create a common currency to facilitate trade and exchange; to enforce contracts; and to supply public goods such as transportation  networks and police networks that markets cannot furnish by themselves.  States make market systems possible by making ground rules. (PAGE 111- 112) 5.      Understand why the quality of the rules states make for markets determines why  some countries have better economic performance than others Rules that states make reduce uncertainty that contracts will be honored,  that money will retain its value, and that consumers will not be cheated but  also steer economic goals. States create welfare systems to neutralize the  natural tendency of markets toward inequality; they create regulations, such  as pollutions controls, to minimize harmful spillover effects; and they use  their budgetary powers and control the money supply to reduce the swings  in the business cycle. The countries that tend to do the best are those who  update the boundaries of what should be left to the market and what should  be determined by the state depending on their needs. (PAGE 116-117) 6.      Understand the advantages and disadvantages of market systems
background image Advantages: they are extraordinarily dynamic, promoting the development of new products and more efficient production methods and technologies; very  productive; they enhance the prospects of democracy and political rights.  Disadvantages: highly volatile (do not remain in stable equilibrium);  susceptible to boom and busts; they generate extraordinary inequality;  create harmful spillover effects/externalities. (PAGE 113-116) 7.      Show an understanding of the shifting balance between states and markets  between 1970 and 2010 Prior to 1970, people had pointed out systematic market failures as the  reason that state intervention was required but then it was argued that  growth had slowed because the welfare state had undermined the work  ethic, and other issues. Policies shifted to states being less inclined to direct  markets than to support them. After the global recession of 2007 cast doubt on this model. George W. Bush  and Barack Obama intervened dramatically in the economy by bailing out  banks, buying shares in car companies, and investing in markets to prop  them up. “Big government was back with a vengeance” and “Laissez-faire is  finished…Self-regulation as a way of solving problems is finished.” (PAGE  118) 8.      Explain the meaning of globalization and global production chains Globalization refers to the increasing flow of money, people, skills, ideas, and goods across borders (extensive development). Global production is where 

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School: Illinois State University
Department: Politics
Course: Introduction to the Politics of Africa, Asia, and Latin America
Professor: Osaore Aideyen
Term: Spring 2016
Tags:
Name: POL 140 Quiz 3 Study Guide
Description: This is a filled out version of the study guide that Professor Aideyan sent us. I've included quotes right out of the text book and the pages they came from (as well as summarizing ideas). Hope this helps :)
Uploaded: 03/03/2016
11 Pages 58 Views 46 Unlocks
  • Better Grades Guarantee
  • 24/7 Homework help
  • Notes, Study Guides, Flashcards + More!
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