URBS 350, Exam II REVIEW Political Economy 1. What are the institutions of globalization? 2. What impact has globalization had on the world’s poor and poverty ? 3. Who has benefited from globalization and how/why have they benefited? 4. What is comparative advantage? What is the role of opportunity cost in comparative advantage? 5. What are some of the negative impacts of globalization and how can we mitigate these impacts? 6. Differentiate between monetary and fiscal policy. I may ask you questions within the context of a current example such as the ongoing crisis in Europe. 7. What is money? 8. What role(s) do the IMF, World Bank and WTO play in today’s economy? 9. Why is democracy important, specifically with regard to capitalism and free markets? 10. What are pros and cons associated with ‘free markets’? 11. What are the reasons for market failure? What can the government do to prevent market failure? 12. What are the different types of value (e.g. use value, exchange value). 13. How do we measure income? What is PPP and why do we make PPP adjustments? 14. How do we measure income distribution? What are the implications of equal/unequal income distributions? 15. What impacts ‘price’? 16. What are the characteristics of least developed countries? Study the map. 17. How do we measure poverty in the US (2 ways). How is the middle class defined in the US (w/ respect to AMI). 18. What are the causes of poverty? How can we reduce poverty? What areas have experience poverty reductions (and which have not). 19. What are the three “D’s” of development articulated by the worldbank (see video). 20. What is microcredit? What are its features? Why is it important? Please watch the videos on Grameen Bank and Dr. Yunnus/Dr. Sachs. 21. What are the features of an inclusive financial sector? 22. What are the prospects for development in India (see video)? What are the problems currently afflicting India? 23. Understand the impact on price levels (eq. price) based on changes in supply and demand. 24. Readings: Diagnosing Development Bottle Necks, World Bank Poverty Supplement, UNDP Human Development Primer, Developing World’s Bulging but Vulnerable Middle Class, Does Globalization Help or Hurt the Poor, New Middle Class in Emerging Markets, India’s slowing