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					Gregory Clark                                                             Econ 110A, Fall 2006



                                         FINAL
                              A total of 100 points are possible.

Last Name:      _____________________________ First Name:           ________________________

Your Student ID Number:      __ __ __ - __ __ - __ __ __ __




                       Part A: Multiple Choice Questions (50 points)
                             (20 questions, each worth 2.5 points)


1. Edward Jenner (1749-1823), a country doctor in England, introduced vaccination against
smallpox in England in 1796. Smallpox was one of the principle causes of death in England at
that time. Suppose the Industrial Revolution had not occurred. The long run effect of Jenner’s
discovery would have been.

A.     Life expectancy same, wages same, population grows.
B.     Life expectancy same, wages fall, population grows.
C.     Life expectancy same, wages fall, population the same
D.     Life expectancy increases, wages fall, population grows.
E.     Life expectancy increases, wages fall, population the same




2. A number of factors suggest that the Chinese and Japanese seem to have been poorer in 1800
than people in Europe. Which of the following is NOT one of them?

A.     The low average heights of men
B.     The low level of real wages
C.     The small amounts of consumption of meat and alcohol
D.     The very high population densities
E.     The large share of the population engaged in agriculture




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3. The average height of modern US adult males is just above 70” (178 cm). What (roughly)
was the average height of men in the pre-industrial world?

A.      58”   (147 cm)
B.      62”   (158 cm)
C.      66”   (168 cm)
D.      70”   (178 cm)
E.      74”   (188 cm)



4. What (roughly) was the average height of men in pre-industrial Japan?

A.      58”   (147 cm)
B.      62”   (158 cm)
C.      66”   (168 cm)
D.      70”   (178 cm)
E.      74”   (188 cm)



5. Captain Cook is sailing in the Pacific in 1780. He finds a man adrift on a raft. He indicates
his island is to the west. Cook only wants to go there if it is prosperous. Which of the following
facts would be the best indicator that living standards on this island were high relative to
England in 1780?

A.      The man has some iron implements.
B.      The man is 70” tall.
C.      The man indicates that the average person on this island has only two children.
D.      The man indicates that there are 1000 people per square mile of the island.
E.      The man knows how to use a knife and fork.



6. Malthus wrote his “Essay on a Principle of Population” in 1798 because

A.   He wanted to demonstrate the importance of good government in explaining human
     welfare.
B.   He wanted to explain why the Industrial Revolution was increasing real incomes.
C.   He wanted to explain why human welfare was independent of the actions of
     government.
D.   He was a supporter of the French Revolution of 1789.
E.   He was arguing for increased subsidies to poor families by the government.




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7. Which of the following books was written before Malthus’s Essay on a Principle of
Population?

A.      Adam Smith, Wealth of Nations
B.      Frederick Engels, The Condition of the Working Classes in England in 1842
C.      Karl Marx, Capital
D.      Charles Darwin, Origin of the Species
E.      John Maynard Keynes, General Theory



8. In a Malthusian Economy what is the long run effect of a tax on wages to fund wars?

        Birth Rate    Death Rate       Population
A.      Same          Same             Falls
B.      Same          Increases        Falls
C.      Same          Increases        Increases
D.      Falls         Falls            Increases
E.      Falls         Same             Falls



9.      We know that the peoples of the Americas were much less technologically advanced than
the invading Europeans circa 1500 because

A.      Mayan pyramids were very similar to those of the Ancient Egyptians
B.      The Aztecs practiced human sacrifice
C.      Cortez and a small band of Spaniards were able to conquer the entire Aztec Empire in
        1519
D.      There were only about 25 million people in the whole of the Americas in 1492.
E.      The Incas had no written language



10. In a Malthusian economy the birth rate is 20 per thousand. What will life expectancy at birth
be in the long run?

A.      100
B.      50
C.      25
D.      20
E.      10




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11. How many children (roughly) would a woman who survived to age 50 in the average pre-
industrial society give birth to?

A.      2
B.      3
C.      5
D.      7
E.      10



12. In a Malthusian economy there is a one-time improvement in the technology. The effect of
this in the long run is:

A.      Wages go up, the birth rate stays the same, and the death rate falls.
B.      Wages go up, the birth rate and death rate both fall.
C.      Wages go down, the birth rate stays the same, and the death rate falls.
D.      Wages, birth rates and death rates all stay the same.
E.      Wages fall, birth rates and death rates stay the same.



13. Which of the following formulas would you use to calculate efficiency growth rates in
economies before 1800 (N = population, a = share of capital in income, b = share of labor in
income, c = share of land rents in income)?

A.              gA    =         agN
B.              gA     =        bgN
C.              gA     =        cgN
D.              gA     =       gQ/N – agK/N – cgN
E.              gA     =       (1-agQ/N + cgN




14. The typical rate of efficiency advance in the world before 1800 was

A.      0.05%
B.      0.2%
C.      0.5%
D.      1%
E.      2%




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15.   Which of the following was allegedly unknown to the Ancient Romans and Greeks

A.      The alphabet
B.      Numbers
C.      The wheel
D.      Glass
E.      The windmill



16. Formal legal property rights in knowledge first appeared in

A.      Ancient Egypt
B.      Ancient Greece
C.      Florence in the 12th century
D.      Venice in the 15th century
E.      England in the 18th century



17. We believe that either capital investment or productivity advances is the basic source of
growing income per person since the Industrial Revolution because:

A.    There are no other possible sources of income growth per person.
B.    Technological advances are generated by investment.
C.    Interest rates have fallen from the period before the Industrial Revolution.
D.    High income economies have both a lot of capital per person and high productivity
      levels.
E.    There are external benefits from investing in capital.



18. Suppose that in an economy prices are falling at 2%, while the payments to capital, labor and
land are all increasing at 3%. The shares of capital, labor and land in national income are not
known. The productivity growth rate is

A.      -1%
B.      2%
C.      3%
D.      5%
E.      not possible to calculate




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19. A census of a pre-industrial population records 60% of people as having ages ending in a
“0” or a “5”. What percent of this population was likely innumerate, and thus also illiterate?

A.      20%
B.      30%
C.      40%
D.      50%
E.      60%


20.   A rough approximation for the rate of growth of efficiency in modern economies which
depends on the constancy of the real rate of return on capital and the small share of land rents
would be

A.             gA     =         bgw/p
B.             gA      =       agr + bgwcgs - gp
C.             gA     =        -bgw
D.             gA      =        agr/p + bgw/pcgs/p
E.             gA     =         bgw




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               Part B: LONG ANSWER (50pts)

 1. (a) (8 points) Show that the growth rate of efficiency in an economy can be calculated as

                   gA = gQ - agK - bgL - cgZ
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 1 (b) (12 points) Show that the result in part (a) above implies that growth rate of efficiency
 in any economy can also be calculated as

                    gA = -gp + agr + bgw + cgs
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2. (20 points). Most economists assume that the explanation of the Industrial Revolution is bad
institutions in all pre-industrial societies. Using the material from this course explain why you
do, or do not believe this standard view. Answers will receive extra credit for being well
organized, coherent, and grammatical, and for using specific historical examples.

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3. (10 points) Interest rates were very high in early societies. For example in 13th century
England they were 10-12%. Explain why this seems to imply that people in early societies were
just more impatient than those by 1800. Answers will receive extra credit for being well
organized, coherent, and grammatical, and for using specific historical examples.
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