Final ReviewEconomics 4130 Final ReviewThe exam will have 10, 10-point questions on it from the questions below. 2 will be from 1-7, 2 from 8-14, 2 from 15-21, and 4 from 22-1. List 2 data sources researchers use to estimate historical standards of living and explain what they can infer from these sources. List three indicators of economic development other than National Income measures (NI, GDP, or GNP, level, growth rate, or per capita) that are of interest to economists and explain what can be inferred from each of these indicators.2. Explain in detail 3 weaknesses of per capita GNP (or GDP) as a measure of economic well-being. Although this measure has the flaws you just listed (and others) it is the most oft-referenced statistic when considering standard of living differences across countries. Why?3. List 4 contributions of the earliest civilizations (those that eventually formedthe Babylonian Empire) and explain how each was important to continued economic growth.4. What is meant by technological stagnation in the Greek and Roman Empires? How could “an Overdose of Slavery” be the cause? List 2 flaws of the slavery explanation. Provide an alternative explanation.5. Answer the following the questions regarding the model discussed in class in which a landlord and farmer could operate under 3 possible arrangements:fixed rent, fixed wage, or the Manorial System (shared inputs). Under a fixed rent contract: who bears the risks of a bad crop and reaps the benefits of a bumper crop? Characterize the incentive of a farmer to exert effort while working the fields. Under a fixed wage contract: who bears the risks of a bad crop and reaps the benefits of a bumper crop? Characterize the incentive of a farmer to exert effort while working the fields. Under a Manorial System: who bears the risks of a bad crop and reaps the benefits of a bumper crop? Characterize the incentive of a farmer to exert effort while working the fields.6. Explain (preferably using a graph) why the number of manors grew as the population increased in medieval Europe. What happened to wages and the prices of food and land? (Again, a graphical analysis is helpful) Why did the population increase lead to the beginning of the end of the manorial system?7. According to Jared Diamond, the ability to grow what types of crops are most favorable to economic development? Why? List and briefly explain 3 characteristics of an animal that Diamond sees as necessary for domestication of that species.8. Describe the impact of the efforts of Prince Henry the Navigator (1418-1460) on the Portugese economy? What was the impact on intercontinental trade of the successful voyage of Vasco da Gama (1497-1499)? Contrast Portuguese colonization of Africa and Asia with that of Spain in the New World.9. Why does J.U. Nef characterize the 16th Century as a First Industrial Revolution in Great Britain? (Hint: list the 3 characteristics of an industrial revolution according to Nef and provide the relevant examples of each).10. Explain Kenneth Pommeranz’ explanation for the “Great Divergence.” In particular, explain how differential factor endowments and having to simultaneously meet the following needs played a role: food, fuel (for both warmth and eventually as a source of energy), clothing, and building materials (wood vs. iron).11. Explain how each of the following contributed to the Conquistador’s successin the New World: the invention of the printing press, domestication of animals, and their ancestors’ experience in the Crusades.12. Provide a brief history of the limits placed on the British monarchy. Explainhow these limits as well as the establishment of the Bank of England were important to Britain’s early industrialization.13. Why was the development of insurance important for economic growth? Why did diffusion double-entry bookkeeping facilitate the birth of modern industry? Explain the connection between the Scientific Revolution and theIndustrial Revolution in Great Britain.14. Why are the views of Renaissance Christianity (as contrasted with Classical beliefs) thought to have fostered economic growth in the West? Provide 3 explanations as to how the Protestant Reformation also increased economic growth.15. Explain the Putting out system (cottage industry). List and generally describe 3 of the labor-saving innovations in cotton textile production that revolutionized this industry during the 18th century. What was the impact of these inventions on the cottage industry?16. What are the 3 prongs in Joel Mokyr’s theory of the “growing up” of the economy? How is this theory consistent with the estimated growth andproductivity rates for Great Britain in the eighteenth and nineteenth centuries?17. Give details as to why each of the following may explain why Great Britain industrialized first and provide any weaknesses of each argument: Geography, Social Forces, Government Policies18. What do data on wages tell us about changes in the standard of living duringthe Industrial Revolution? How about changes in consumption? In what waydoes looking at biological measures tell a different story?19. Provide three detailed examples of how government interventions promoted economic development during Transition period, 1830-1870.20. Discuss the increase in steel production during the Second Industrial Revolution. Specifically, what technological improvements led to greater mass production? Quantify this increase. List 2 forward linkages from the steel industry21. Provide three detailed explanations for the entrepreneurial failures resulting in the British Climacteric.22. Describe the attempt of Europeans to colonize Africa depicted in Guns, Germs, and Steel. Specifically, how successful were they in South Africa? What happened when they encountered the Khoisan tribes? How about the Zulu? Were they able to successfully settle the interior? Whyor why not?23. Explain briefly how guns and steel aided in Europeans’ attempts to conquer the native population of Africa and the Americas. How did germs work in favor of European conquest against the Incas? How did germs work against the Europeans in their imperialist efforts in Africa?24. Explain how increased trade flows and the prevalence of Bills of Exchange, led to the formation of merchant banking. Explain the process of discounting bills. Explain the formation of the House of Baring.25. With respect to the International Gold Standard, what is