Final

Question 1

Nation-State

Answer 1

Defined by territory and order

Question 2

Tribe

Answer 2

social/political associations based on descent and marriage

Question 3

city-state

Answer 3

independent cities dedicated to trade, often relied on stronger political actors for protection from invaders and thieves

Question 4

empire

Answer 4

powerful city levying tribute upon groups that are self-governing and lie far from imperial power

Question 5

nationalism

Answer 5

an imagined political community (limited and sovereign)

Question 6

4 causes of nationalism

Answer 6

urbanization, mass communication, total war, decline of the church

Question 7

Before nationalism, what cultural systems?

Answer 7

religious communities and dynastic realms

Question 8

ethnic identity

Answer 8

membership in an ascriptive category

Question 9

piketty’s fundamental force for divergence

Answer 9

rate of return on capital > growth rate, inherited wealth grows faster than output and income and capital becomes extremely concentrated increasing inequality

Question 10

piketty’s second law of capitalism

Answer 10

capital.income ratio = savings rate / growth rate, when g is low capital becomes more important than income, impacts social structures and wealth distribution

Question 11

lorenz curve

Answer 11

proportion of total wealth held by the poorest percent of the population

Question 12

property rights

Answer 12

1) Right to restrict access to an asset 2) Right to use, divide, mortgage, transform or alienate an asset 3) Right to earn income from asset and contract with others 4) Ability to have these rights predictably protected

Question 13

selective enforcement

Answer 13

enforce rights of only privileged group of asset holders

Question 14

enforcement as public good

Answer 14

protect rights of asset holders equally w/o discriminating based on political power or class

Question 15

3 P’s of property

Answer 15

1) Precision - rights are consistent and precisely defined 2) Predictability - if something happens, resolution is same because rule of law is predictable 3) Prevention of Predation - prevent theft of assets and income by people or gov

Question 16

progressive taxation

Answer 16

those who have more resources and earn the most pay higher taxes - reduces inequality

Question 17

social conflict theory

Answer 17

rulers know that institutional arrangements not good for development but works for the rulers (property rights gap can allow ruler to have tight grip on rural population)

Question 18

economic model of property rights

Answer 18

rulers needs long term horizon (Albertus argues this is not a sufficient explanation)

Question 19

median voter theorem

Answer 19

median voter sets tax rate and redistribution level - when mean income is higher than median, then expect higher taxes and high redistributions

Question 20

empathy gulf

Answer 20

people in one social stratum cannot imagine goods pursued by others

Question 21

bandit

Answer 21

extracts

Question 22

stationary bandit

Answer 22

stays in one place, extracts and in return provides public goods (eliminates anarchy, return of public good)

Question 23

roving bandit

Answer 23

moves from place to place, takes taxes, not settling down, leads to anarchy, unsettles people - rational thing is stationary bandit

Question 24

Weber state

Answer 24

human community that claims the monopoly of the legitimate use of physical force within a territory

Question 25

legitimations of domination

Answer 25

traditional, legal, charisma

Question 26

nation state (Tilly)

Answer 26

state whose people share a strong linguistic, religious, and symbolic identity (Sweden, Ireland)

Question 27

backward-looking framing

Answer 27

direct attention to the past (presents alternative as past and not progress)

Question 28

downward-looking framing

Answer 28

direct attention to less fortunate (destroy would be alliances, feeds racism, keeps middle/low classes fighting)

Question 29

physical gulfs

Answer 29

reinforce empathy gulfs

Question 30

inward-looking framing

Answer 30

forget inequality and focus on self (blame self and not institutions)

Question 31

redistributive thesis

Answer 31

favor taxing rich to help poor

Question 32

kuznets curve

Answer 32

inequality increases then decreases as country gains wealth (industrialization increases then gov involvement decreases)

Question 33

GAAP

Answer 33

Allows diverse firms with different investments to produce comparable financial statements

Question 34

PR Gap

Answer 34

when gov redistributes land but does not grant land beneficiaries property rights over that land

Question 35

social conflict theory

Answer 35

Poli elites/rules may choose bad/inefficient economic institutions even if cause stagnation