PART 2: Study Guide Political Science Final Exam

From Political Economic Systems from March 11

1. How does the government's role in the economy differ in various systems, and what are the main ways the state can be involved? Government intervention can vary in different ways such as laissez-faire economy. There can also be different ways in which the government can be involved such as during crises, regulation of industries and redistribution of wealth through taxes.

2. What does "laissez-faire" mean in a political economy, and can you give examples of countries that follow this approach? Laissez-faire is defined as a type of political system where the government chooses not to interfere in its national economy. Examples of countries that follow this approach are countries that have inherited their political-economic systems from England such as the United States, and Australia, where there is less government involvement.

3. Compare countries like Australia and the United States with those in Latin America and Europe in terms of government involvement in the economy. What factors contribute to these differences? Countries with roots in English political systems such as the United States and Australia tend to have less government intervention emphasizing the free market. Countries in Latin America and Europe tend to move to more government intervention including higher taxes and more regulation. The differences between the United States, Australia and Latin America, Europe can be attributed to historical, cultural factors.

4. Explain mercantilism as a system aiming to maximize a country's wealth. How did it work during the British Empire, and what were its consequences? Mercantilism seeks to maximize a country’s wealth by increasing exports and limiting imports. During the British Empire, their policies included discouraging the importation of competitive products in their colonies and encouraging only the importation of British products, often accomplished through taxation. It boosted the power of the empire but created conflict for the colonies, especially in the Americas, where the cost of imported goods from Britain were substantially higher than imports from other regions contributing to the Revolutionary War.

5. What is economic nationalism, and why has it seen a resurgence in the United States and Western Europe? How does it affect international trade? Economic Nationalism is defined as attempts by a state to protect or bolster its economy for nationalist goals. There has been a resurgence in the United States and Europe due to protectionism and how they prefer policies that lead to diversification of domestic production. 

6. Describe the basic principles of free market capitalism, including self-interest and limited government control. What challenges might arise in global trade with this approach? Free market capitalism promotes individual ownership, competition, and little to no government intervention in economic activities Some challenges that may arise are exploitation, and the creation of monopolies, and it can also lead to income inequality. 

7. What does Marxism criticize about free market capitalism, and what does it predict about the conflict between the working class and business owners? It argues that capitalism is destructive, corrupt, and unable to survive as an economic system. Capitalist systems inevitably lead to conflict between the working class and business owners wherein the workers would eventually rise up against those who own the means of production.

8. How did communism, based on Marxist ideas, play out in the Soviet Union? Why did it eventually collapse in 1991?  In communism, it was suggested that the state, usually dominated by one party, is in complete control of the political-economic system, including all property. It collapsed due to economic challenges and nationalist movements primarily due to the discontent of the people.

9. What is economic structuralism, and how does it address challenges in the developing world? What are the key issues it focuses on? A political economic system wherein the working class must be protected from exploitation of the capital-owning class, but on an international scale. It focuses on inequalities and promotes Import-substitution industrialization (ISI) referring to a country's attempt to reduce its dependence on foreign companies through increased domestic production. 

10. Explain social democracy as a system aiming for a more equal society through government regulation. Can you give examples of countries following this approach? Social Democracy is a political and economic system that favors heavy market regulation to achieve a more equal society. Governments levy high taxes on corporations and wealthy individuals and redistribute the collected funds to poorer members of society through social welfare programs. Types of countries like these can include Norway or Sweden which have aspects of social democracy such as progressive taxation and free healthcare, education, etc.

INTRO TO LIBERAL ECONOMICS  from Feb 22

1. What is Mercantilism (how is it organized and why did it exist)? Mercantilism means individuals starting a company need to often get permission often known as a charter from the government, the government then controls who they could trade with and often these charters gave the private individuals a monopoly that usually leds to higher prices and less innovation because there’s no one competing with him.

2. What did Adam Smith say should be the role of government in the economy? He argues that the strength of the nation isn’t in the king or how much gold and silver he has but in the work the people do and all of the restrictions the government was doing were just getting in the way of entrepreneurs who were trying to start new companies.

3. What does “invisible hand” mean? The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. An economy will comparatively work and function well if the government will leave people alone to buy and sell freely among themselves, if people were allowed to trade freely, self interested traders present in the market would compete with each other, leading markets towards the positive output with the help of an invisible hand.

4. What are the six key characteristics of a classical liberal economy?

   1. How do these ideas relate to individualism? *not explicit in video

• Private Property

• Self-reliance, hard work

• Profit motive

• Price System

• Competition

• Inequality of wealth.

1. These ideas relate to individualism because you’re responsible for all this and what motivates you, there is no government intervention and it’s just you that will have to achieve these things.

5. What are three reasons why people support classical liberal economic ideas (you were given several different reasons – pick those you think are most important)? 

• Competing to sell all your stuff = things are cheaper and there are always new products to choose from.

• People want to lern new things so they can figure out what people want.

• Business provide what people want = economy grows

6. How does supply and demand answer the three basic economic questions in a capitalist economy? With supply and demand the questions answered are what to produce, what do the people want; one must ask this question. How to produce it; the seller decides how to make it and this is determined by the seller’s goal and who gets it.

7. What were the ideas of Malthus and Ricardo? Malthus thought that populations were growing too fast and the natural limits on population through poverty and famine were being prevented by charity, he believed we need to stop giving support to those who are starving in order to control the population. Ricardo believed that government intervention with wages meant that less skilled workers were getting overpaid which them encourages them to have more kids which leads to more underskilled workers, he said to just let those skilled workers get paid what they deserve.

From Michel Foucault: Discourse and Power

1. How does Foucault's concept of surveillance relate to disciplinary power, and what example did he use to illustrate it?  Surveillance teaches us to discipline ourselves and other members of society through constantly monitoring our ways, of thinking, behavior, lifestyles, and appearances. When students go to school, they have to ensure they complete their academic requirements, follow all the rules, and behave well in front of others. They also have to look “presentable” – wearing a uniform, taking off jewellery and makeup, etc.

2. Define governmentality and biopower according to Foucault, and provide examples of how they manifest in contemporary society. The term ‘governmentality’ was coined by Foucault to describe how individuals and populations can be led to govern their own conduct themselves, through their own will. Biopower refers to policies and rules that manage the biological functions of a population – births, deaths, reproduction, and health and illness. For example how China told their ciitizens to have only 1 child.

3. How does Foucault's work challenge conventional notions of power and governance, particularly in relation to individual autonomy and societal control? He thinks power is distributed through society and not of a full control by the government, societal control is also through people and not the government and how he sees power different than the government and its structure.