Short Answer (50%)

1. What was the defining ethic of the feudal economies?

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2. "Doing well at one’s calling is the best way to praise God." This is a good description of –

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3. Name two of the philosophers that helped develop the ethic of Individualism.

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4. David Ricardo is known for this economic principle of trade:

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5. What is Say's Law? _________________________________________

6. Who ultimately pays for tariffs on imported goods?

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7. Match the type of imperialism with its author

1. Hobson __________	a. Mature Capitalism
2. Lenin __________	b. the search for raw materials
3. Marx __________	c. blind tradition
4. Schumpeter __________	d. "Superprofits"

Essay. Answer one—only one--of the following: (50%)

1. Discuss the determination of exchange rates. Include

a. the concept of purchasing power parity

b. the reasons exchange rates might change

2. Demonstrate the Principle of Comparative Advantage. Discuss the most common arguments against free trade, and why you agree or disagree with each.