Economics 103

1. Define or identify (3 points each)

a. T. Veblen
b. J.S. Mill
c. capital
d. enclosure
e. guilds vs. putting out system

2. What is the role of an ideology in an economic system? What happens if there is no "agreed to" ideology? Explain. (15 points)

3. What is an economic system? What are the goals of most economic systems? Give some (brief) examples. (15 points)

4. Adam Smith discusses value in use and value in exchange. Why is it that diamonds have a high value in exchange and little use value while water has a high use value but little value in exchange? Explain. (5 points)

5. The North American colonies were products of the British Mercantile system. Explain how mercantilism functioned in the colonies. What are the characteristics of mercantilism?

After independence, the U.S. economy began to develop from one dominated by mercantile influences into one of industrial capitalism. What factors and institutions made this possible. Explain. (25 points)

6. Why did Marx condemn capitalism? Explain his reasoning. What "parts" or aspects inherent to capitalism contained "contradictions?" Explain or illustrate these contradictions. Why have Marx's "predictions" about capitalism fallen short? In what ways has capitalism changed since Marx's time? (25 points)