AU18 Midterm 2 ReviewEconomics 4130AU18 Midterm 2 ReviewThe exam will have 7, 10-point questions on it from the questions below.1. (3 points) What role did guns play in the Conquistador’s success in the New World?-Guns gave Spaniards better advantage-Incas did not have weapons·never seen gun smoke, sound factor scares them, they are teryfiying-basically wiped out a whole tribe easily (4 points) Why were the germs brought by the Spaniards so devastating to the Incans?-incas were never exposed to infectious diseases·germs from domestic animals in Spain started infectious disease-particularly smallpox. Because Europeans had been exposed to the disease over the course of centuries, their bodies had built up a natural resistance (antibodies) to these diseases. When the people of the Americas and the South African cape encountered these germs, they werekilled in massive numbers, making settlement of these lands much easier for the Europeans.(3 points) Why were the Spaniards’ weapons so much more advanced than the Incans’?- Spanish weapons·guns were best·had some of best swords smith·horses made for prime fighting posture and mobility·incas made simple bronze tools·metals introduced in fertile crescent so spread west to spain relatively fast·swords were very strong from heating and cooling process2. (5 points) Explain the significance of written language in giving the Conquistadors and advantage in their battle with the Inca. -Printing press·cortez had documented his model of attack (of Aztecs) in a book that Pizzaro then used to conquer the incas(5 points) Explain the importance of horses in this battle.- The Incas hadn’t seen horses before, and these aren’t ordinary horses, these are Spanish horses, fierce, big, fighting horses. They could get in amongst men, they would trample men and they made the most excellentplatform. From the horse, you could stab down to the left, stab down to the right, you could cut, you could scythe, hacking all about you.3. (5 pts) List the five points of the Malthusian Model discussed in class.a. Primary resource is foodb. Cultivation of new land and increased labor in response to population growthc. Law of diminishing marginal returns to labor and land kicks ind. As population grows, food supply becomes scarcee. Population must be ‘checked’ as food supply dwindles (3 pts) How is this model consistent with population changes in Europe’s First and Second Logistics. Living conditions were declining in first part of both logisticsi. Population growth resumes in 1450: 1. increase wages, less disease due to immunity, earlier marriage, increase birth rate, increase life expectancyii. Stagnation of 16001. 30 years war – 4 million Germans die2. epidemics3.decreased fertility (2 pts) Give a specific example of a positive check and a preventative check. Positive Checks a. Increase mortality: faminePreventative Check: decrease fertilitya. Abortion, abstinence4. (6 pts) Explain the evidence provided by Nathan Nunn that the African Slave Trade continues to this day to have a detrimental impact on economic development. Significant negative relationship between number of exported slaves and current GDP •Significant positive relationship between distance from slave ports and current income levels•Position: poor countries were more involved with slave trade and therefore are still poor today •Counterargument: richer countries (Kongo Kingdom) exported significantly more slaves than poor countries•Poor countries violently resisted slave trade •For slave trade: centralized government, national currency, well developed trade markets Briefly explain two channels of causality in which greater participation in this trade harmed development of the political economy ( 4 points) 1. Weakened ties between villages-ethnic fractionalization is an important determinant for economic development-Ethnic diversity is important for social connection, domestic institutions and policies, and quality of government2. Weakening and underdevelopment of states-slave trade caused long term political instability resulting in weakenedand fragmented states-parts of africa most severely impacted by slave trade tended to have least developed political system-after independence, these countries continued to have weak and unstable states as well as slower economic growth.5. (4 pts) Why did the manorial system persist so much longer in Russia than in Northwest Europe? Very sparsely populated, about 2 people per square kilometer- All the favorable conditions for serfdom slavery described by Domar- Additionally had very forcible centralized authority to impose slavery.- Very backward as a result of little economic incentive for progress.(3 pts) did Italy’s economic development lag behind that of Northwest Europe? Italy- Urban nature of Italy made it particularly susceptible to the Price revolution and plagues because of its relatively higher population density. (3 pts) Why did Scandinavia’s development also lag?Scandinavia- Remained very sparsely populated. Economy was based off of, collective agriculture and primitive stock raising. Need for timber andSwedish iron eventually integrated scandinavian countries into the western european economy.6. 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). (4 for the 1st characteristic, 3 for each of the 2nd & 3rd)1. New Industries-paper mills-gunpowder mills-cannon foundries-iron and copper -sugar refineries2. New Techniques- Mining-Pumping water from mines-new iron smelting process3. New TechnologyConversion of wood to coal for basic fuel.Steam pump-railroads7. (3 pts) What are the basic principles of Mercantilism? (3 pts) Mercantilism viewed wealth as the ultimate source of power. This was acquired through the net inflow of gold and silver while keeping net exports higher than imports. It focusedon acquiring wealth/money as well as the retention of funds. Contrast mercantilism with principles of mercantilism with that of neoclassical economics. Mercantilism viewed trade as a zero-sum game, while neoclassical economics viewed it as mutually beneficial. Mercantilism also viewed wealth purely on the amount of gold and silver a country had, while neoclassical economics viewed wealth through social measures such as GDP and GDP per