The Iron Law of Wages

Comparative Advantage:The Iron Law of Wages

ECON 101

International Political Economy Exam II

Take Home Essay Guide



I. Basic Terminology: Be able to incorporate as many of of the following basic political economic terms as possible into each of the two essays of choice from the second category. Class lecture notes may be used for defining the listed terms as well as the Charles Wheelan textutal readings.** Do be certain to incorporate other useful data from lectures notes, the Wheelan text, and various suggested scholarly IPE books and articles as well.**

David Ricardo, “Comparative Advantage,” “The Iron Law of Wages,” and “Theory of Rents.”

Anne-Robert Turgot and Jean-Baptiste Say


Charles Fourier and Count Sainte-Simon


Karl Marx

William Stanley Jevons and Leon Walras

Historical Economics and the Marshallian School

East Asian Model of Developement

Export Oriented Strategy

Rent Seeking

Structural Adjustment Programme

Efficiency Oriented Investment

Foreign Direct Investment

Horizontal Integration

Intangible Asset

Locational Advantages

Market Oriented Investment

Natural Resource Investment

Positive Externalities

Specific Asset

Vertical Integration

Calvo Doctrine

Export Processing Zone

Locational Incentives

Multilateral Agreement on Investment

Obsolescing Bargain Performance Requirement

Trade Related Investment Measures

United Nations on Permanent Sovereignty over Natural Resources

Balance of Payments and Balance of Payments Adjustment

Bretton Woods System

Capital Account


Current Account

Exchange Rate System and Exchange Restrictions

Fixed Exchange Rate System and Fixed but Adjustable Exchange Rate System

Floating Exchange Rate System

Foreign Exchange Market

Foreign Exchange Reserves

Fundamental Disequilibrium

Managed Float

Speculative Attacks

Stabilization Fund

European Monetary System

International Investment Position

Louvre Accord, Monetary Accord, and Plaza Accord

Target Zone

Phillips Curve

II. Essay Topics: Answer any two of the following essays with each response tallying 5-8 pages. (50 POINTS EACH).

1. Who was David Ricardo? Illustrate and explain his economic theories? Were they accurate? Might they be useful in the present?

2. In what ways did the French Enlightenment era help create the study of modern economics? Illustrate and explain all key figures

and their philosophies. Are they influences found still in the modern

global economy? If so, in which ways?

3. Who was Jean Baptiste Say? Why is he important in IPE? Explain.

4. Who were Charles Fourier and Count Saint-Simon? What economic philosophies did they create? Are their views prevalent, still?

5. Who was Karl Marx? What was his economic philosophy? How and why has his economic philosophy been so widespread as well as controversial? Explain.

6. What is Import Substitution Industrialisation? What are its’s problems? Explain.

7. What is the East Asian Model? Should the West imitate it? What are its’s strength and weaknesses?

8. What kind of economic reform is occuring in China? Is it both good and bad for China as well as the global economy?

9. What are the global community’s criticisms about the WTO’s treatment of developing countries? Are their complaints valid?

10. What are Multinational Corporations? Explain their evolution by illustrating examples of the first to evolve slowly thousands of years ago as well as the first global businesses to appear in the modern age. How are these kinds of businesses influencing the modern world economy in a positive or negative way? Should MNC’s be regulated by the international community. Defend your point.

11. What is the International Monetary System? What are its’ problems? How can payments imbalances become remedied?

12. What is the Bretton Woods System? Who created it, when, and why? Is it still used in the present? What were its’ strengths and weaknesses?

13. What International Monetary System conflicts have occured since the 1970’s? Have the international powers involved solved these problems?

14. How has the European Union cooperated in global currency exchange rates? Have they been better team players than America?

15. Why are some people as well as nations righer than others? Argue and defend your point.

16. What can financial markets indicate about becoming wealthy very quickly?

17. What does economics indicate about politics and vice versa? What are special interest groups?

18. What indicators are necessary to determine a successful and thriving economy? What factors cause economies to surpass others yet eventually decline? Does a powerful economy always indicate a prosperous society for most everyone?


19. What is the Federal Reserve? Is it a force of good, bad or both? .