StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Short answers about Introduction to Political Economy - Essay Example

Comments (0) Cite this document
Summary
In other words, the competing companies may have a secret agreement in order to dominate the market and establish prices that excess the competitive benchmark…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Short answers about Introduction to Political Economy
Read TextPreview

Extract of sample "Short answers about Introduction to Political Economy"

Sur Introduction to Political Economy Familiarize yourself with arguments for and against progressive income taxes.
The arguments that stand for progressive income taxes include:
Vertical equity (taxes are supposed to be progressive for the purposes of vertical equity in the overall tax system)
Redistribution of income (this relates to socially aware governments that seek to combat poverty and enhance social welfare)
Benefit theory (It says: wealthier individuals benefit more from various public services. This serves as justification for progressive taxation)
Aiming to achieve equity in the overall tax system (the progressive tax is viewed as a means of compensation for regressive taxes within the tax system).
The arguments against progressive income taxes include:
Simplicity (progressive income taxes are complex due to their steeply progressive rates)
Political objection (the highest progressive tax typically applies to the minority, while the government that imposes the tax is voted for by the majority)
Economic efficiency (this kind of taxation may lead to economic inefficiency by affecting people’s incentive to work and incentive of risk-taking) (Nightingale 16)

2. Explain the causes of monopolies.
These causes are considered to be the causes of monopolies’ rise:
Need for a permission or license from Government (the statutory grant of certain privileges to a particular person/persons creates monopolistic conditions)
Control over major raw materials as well as possession of certain specialized skills (these might give monopolistic power)
Economies of scale (i.e. necessity of having vast resources creates monopoly)
Buyer’s response (Jayaram & Kotwani 37)
3. Describe the incentives for companies to compete with each other or collude with each other –
Broadly speaking, collusion among two or more companies implies that these companies decide to operate as monopoly. In other words, the competing companies may have a secret agreement in order to dominate the market and establish prices that excess the competitive benchmark (Motta, 2007, p.2). In the market, collusion takes place when competition is too intense and the outcomes of decision-making affect each of the industry’s participants. Collusion is one of the ways to lessen the existing competition. As for competition, it is seen as a process of continuous rivalry between firms that seek to win business. In a bid to take over the market, firms enhance internal efficiency, adopt new technologies, invest in innovations, and reduce inefficiency on managerial level (Office of Fair Trading 6).
4. Know how regulations affect market outcomes, and why these effects may be desirable or undesirable –
In the economic systems that are based on free markets, the latter are major determinants of market outcomes. In the situation when the market failure occurs because of the fact that this market’s quality, price, or quantity do not meet established social welfare norms, economic regulation is used. Its major aim is to prevent market failure. It is desirable since it prevents the market failure (Jacobs & Rapoport 353).

5. Explain the differences between capture theory and public-interest theory
The major difference between capture theory and public interest theory is that the latter believes that regulation is inherently effective: it leads to the society getting better off. By contrast, capture theories assert that regulation works in the interest of a particular group which has succeeded in making its case to some regulatory agency or some legislative body (Hovenkamp 133)
6. -Know and be able to explain the 10 planks of the Communist Manifesto
In his Communist Manifesto, Karl Marx lists 10 steps needed to destroy the system of free enterprise and replace it with system of all-powerful governmental rule. This will bring in the communist state. These steps of 10 Planks of The Communist Manifesto are 1) abolition of private property and giving all land rents for public use; 2) a heavy progressive (or graduated) income tax; 3) abolition of rights of inheritance; 4) property confiscation from all rebels and emigrants; 5) centralization of credit in the state’s hands through national bank; 6) centralization all transportation and communications in the state’s hands; 7) factories’ extension; waste lands’ cultivation; 8) equal liability of all people to labor; 9) agriculture and manufacture combination, as well as equitable population distribution around the country; 10) free education in all public schools (Sims 194).
7. Summarize the key ideological positions in economic thought from mercantilism to the present. Know the general time-line and some of the key players.
The earliest position in the timeline of economic thought in Europe was mercantilism. It evolved in the 17th century. Its basic idea was that any state’s prosperity relied on its capital supply. In its turn, the capital was represented by some kind of value (gold, for example). Within mercantilism, high positive balance of trade had to be maintained. For this, the state used a variety of protectionist tools. Two most notable figures of the mercantilist policy in Europe were Philip von Hornick and Jean-Baptiste Colbert.
Economic nationalism developed in the 19th century. It was based on ideas of mercantilism, but focused more on domestic manufacture rather than colonies. Prominent figures: theorists Alexander Hamilton, Henry Clay, and Friedrich List.
Theories of the 20th century include linear-stages-of-growth model (W.W. Rostow; focus on rapid accumulation of capital), structural-change theory (changing economic structures of the developing states from subsistence agriculture to service economy and more industrialized mode of living) (W.Lewis and Hollois Chenery); international dependence theory (international capitalist system prevents developing countries from successful development; gained prominence in 1970s; neoclassical theory (since 1980s, emphasis on free markets and on government intervention) (Todaro & Smith, 2006).
Works Cited
Hovenkamp, Herbert. Enterprise and American Law, 1836-1937. Harvard University Press, 1991. Print.
Nightingale, Kate. Taxation: Theory and practice. 2002. Pearson Education.
Jayaram, R. & Kotwani, N. Industrial economics and telecommunication regulations, 2012, PHI Learning Pvt. Ltd, Print.
Jacobs, Philip & Rapoport, John. The economics of health and medical care, 2004. Jones & Bartlett Learning. Print.
Motta, Massimo. Cartels in the European Union: Economics, Law, Practice. European University Institute, Florence and Universita di Bologna. 17 September 2007. Web. 6 Feb 2013. < http://www.barcelonagse.eu/tmp/pdf/motta_cartelseulaw.pdf >.
Office of Fair Trading. Government in Markets. 2009. Web. 6 Feb 2013. < http://www.oft.gov.uk/shared_oft/business_leaflets/general/OFT1113.pdf >.
Sims, Francwa. The Anacostia diaries. Lulu.com, Print.
Todaro, Michael & Stephen Smith. Economic Development. 9th ed. Addison-Wesley, 2006. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Short answers about Introduction to Political Economy Essay - 3”, n.d.)
Short answers about Introduction to Political Economy Essay - 3. Retrieved from https://studentshare.org/miscellaneous/1614357-short-answers-about-introduction-to-political-economy
(Short Answers about Introduction to Political Economy Essay - 3)
Short Answers about Introduction to Political Economy Essay - 3. https://studentshare.org/miscellaneous/1614357-short-answers-about-introduction-to-political-economy.
“Short Answers about Introduction to Political Economy Essay - 3”, n.d. https://studentshare.org/miscellaneous/1614357-short-answers-about-introduction-to-political-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Short answers about Introduction to Political Economy

Short answers

.../manufacturers were not paying import taxes, which could have assisted the economy of early America. This act enraged England and is noted as the starting point for the Revolutionary War. No Taxation without Representation Angry over Britains constant imposition of taxes on the colonists without their approval, the term no taxation without representation involved the early colonial American belief that taxes cannot and should not be expected to be paid (or acknowledged) without some form of governmental representation that speaks on behalf of citizens. While England maintained its grip tightly on the colonists in the mid to late 1700s, colonists argued that they had no influence in the British Parliament, therefore they...
2 Pages(500 words)Essay

Short answers

...will be $ 100. However if it produces 11 units, he will now sell it at $ 9 each, so now his total revenue will be $ 99. Therefore his MR will be $ 1, which is less then the price, $ 9, that he had charged for the last unit. Question 10 In the short run if exiting firms under perfect competition are making super normal profits, then new firms are attracted by these profits and they enter the market. When new firms enter the market, they supply their individual outputs in the market. This causes the market supply to increase, causing the market price to fall. New firms continue to enter until all the positive profits are eroded away and all the existing firms end up earning normal profits only. Similarly, if all existing...
1 Pages(250 words)Coursework

Short Answers

...) 2. The Situationist notion of the "colonization of everyday life"  The growing theory of the spectacle is old to be remarkably striking in old English, and making important classifications of the theory itself. This is attained powerfully by the changing scenerior of an inspirational moment, powerfully explored by the situationsits approach, known by its distinct approach to environmental challenges. The concept is derived from the growing list of the societal understanding of built intellectualism. The shocks that were historical identified explore remarkable moments, which are fascinating and are unique especially when important derivatives remarkably involving good moments and good political landscapes. 3. Barthess...
2 Pages(500 words)Essay

Short Answers

...Short Answers Question The fundamental economic problem facing developing countries is the debt crisis. For almost every developing country, financial upheaval of the 1980s has hit off on their economic development (Ambrosio, 2009). This has led to increase in poverty levels as these countries striving to grow under this gigantic debt burden Lack of democracy is the primary political problem facing developing countries. Many of these countries have experienced leadership coups (Ambrosio, 2009). The coup leaders plunder the wealth of these developing countries through enforcing oppressive rules to avoid opposition from democrats. The central social problem facing these countries is...
2 Pages(500 words)Assignment

Short answers about Introduction to Political Economy

..., and controlling natural monopolies, especially in the electricity supply industries and the telecommunications sector. This benefits individual companies too, as regulation encourages fair competition in companies, while protecting the consumers. 5. Differences between capture theory and public-interest theory The idea of capture was developed by George Stigler and argues that, if industries capture their regulatory agencies, they can benefit from regulation. They can do this by making the regulatory agencies depend on their technology and political influence. On the other hand, public-interest theory applies in market failures, when markets fail to regulate themselves, forcing the government to step in because of 6....
2 Pages(500 words)Essay

Short answers about Introduction to Political Economy

...Here Here Here Here Economic Question Responses Arguments for the implementation of progressive income taxes includes the call for a means to prevent the wealthiest from dominating markets, the suggestion that the wealthy will suffer less from increased taxation, and eased burden on lower income classes will strengthen the economy. Those against this tax system say it is illegal due to the the equality of freedom, that it would diminish work incentives, and that it could negatively impact social structure. 2. Some of the causes of monopolization include company advantages due to size and/or economy of scale, extensive spending on irrecoverable costs over time, taking political actions to...
2 Pages(500 words)Essay

Short answers about Introduction to Political Economy

...1. Familiarize yourself with arguments for and against progressive income taxes. I understand why those who are against progressive income taxes would say that those who do well for themselves should not be fairly punished. However, I think that progressive income taxes are a good think because those who make less cannot afford to pay a high income tax rate. Because of this, higher earners are required to pay more income tax in order to make up the shortfall from lower earners. 2. Explain the causes of monopolies. Most monopolies come about when there are high barriers of entry. This prevents new market entrants from entering the market and so it strengthens the share of existing market players. Another cause of...
2 Pages(500 words)Essay

Political science- short answers- Africa

...Due: Political Science “Are there peaceful routes to consolidation?” What’s his answer? What sort ofconcrete things might be done? According to Herbst, the main question that we ask our selves is if the African nations can take transformation policies for consolidating nations without necessarily following the path of the European countries. Peaceful consolidation has to do with revising fiscal policies and government revenue. Herbst says that it is quite hard to have major reforms and increase the states’ capacity without having to rely on wars as a means to ratchet up the extractive ability of a state. Instituting key reforms when the state is running normally is difficult. Concrete things that can be...
1 Pages(250 words)Essay

3 short answers about history

...1. Discuss President Johnsons plan for reconstruction and Congresss response to that plan. President Johnson’s Reconstruction involved a series of proclamations to hold elections and reform the government. He wanted to restore the Union fast through the Reconstruction. The plan also involved returning the confiscated lands to their white owners and passed punitive laws such as Black Codes. It also involved opposing the Fourteenth Amendment that would give citizenship to Black Americans. Congress responded to impeach him which he narrowly escaped by a mere one vote from the Senate. 2. Discuss the major changes that occurred in American agriculture during the last half of the nineteenth century. During the last half... Discuss President...
1 Pages(250 words)Essay

Short answers

... bring about?  How was this designed to involve the spectator?  (p. 731) In conclusion Boccioni’s fourth revolution would bring about a national revolution with a Sorelian conflict between nations as its regenerative aim. This was designed to involve the spectator in the very politics that led to Italy’s intervention in World War I and ultimately, to the rise of Fascism in Italy.... and from this explanation the author concludes that there is a lot of brutality in the finished work, the medusa explains a masculinity vision of sexuality by like a vision of sexuality in a way that inevitably debases women. 13. Which critics and artists does Chave cite in her historiography?  How does the author read the “reception history” of Les Demoiselles...
5 Pages(1250 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Short answers about Introduction to Political Economy for FREE!

Contact Us