(A) experts managing the nation’s commerce are appointed by elected officials.
(B) individual citizens create, exchange, and control goods and resources.
(C) charity, philanthropy, and volunteering decrease.
(D) demand and supply are decided through majority vote.
(E) government implements policies that favor businesses over consumers.
Markets are organized around one simple premise, that voluntary exchange or trade makes both parties better off. A pure market system is free of any central planning authority, and assumes that people are self-interested. A market economy assumes that by appealing to self-interest we can all get what we want out of the market economy. See City upon a Hill pages 294-295. 2. John Locke wrote his Second Treatise on Government to justify which of the following events?
(A) The signing of the Declaration of Independence
(B) The formation of the Constitution of the United States
John Locke wrote his Second Treatise in 1688 and it was formally published just after the Glorious Revolution. (Specific dates are not usually important, but it is important to know the sequence of events and what led to what.) The Whig party in England in the 1680s opposed the king, but on what grounds? John Locke wrote his treatises on government to address the question of rulers and their claim to authority. His ideas became very influential during the American Revolution and are clearly seen in the Declaration of Independence. (See City Upon a Hill pages 31-34.) 3. Which fundamental political idea is expressed in the Declaration of Independence?
(A) The government should guarantee every citizen economic security.
(B) The central government and state governments should have equal power.
(C) If the government denies its people certain basic rights, that government can be overthrown.
(D) Rulers derive their right to govern from God and are therefore bound to govern in the nation’s best interest.
The writings of John Locke expressed the idea of natural rights being those rights that all men are born with and that should be protected by a fair and just government. Locke called for “Life Liberty and Property” as natural rights. Jefferson borrowed this idea for incorporation into the Declaration of Independence. The idea of throwing off the government if they are not protecting certain basic rights was expressed by John Locke in his Second Treatise on Government and echoed by Jefferson in the Declaration of Independence.
4. The king of Pandora and its parliament have passed new laws that levy tariffs on the imports from certain countries. This has caused there to be more exports from the country than there are imports coming in. The country of Pandora is most clearly exhibiting which of the following economic systems?
(C) Market Economy
(E) Free trade
Mercantilism was the idea that the government should regulate the economy to strengthen national power. It emphasized the importance of stockpiling gold and silver to the economic power of the nation. In order to stockpile gold or silver, Britain would have to export more goods than it imported so that gold would have to be used by other countries to settle their accounts. All trade by the colonies had to go through England. The end goal of limiting manufacturing in America was to generate large exports from England. (See City Upon a Hill pages 48-49.) 5. Which of the following best captures the idea of the Christian Calling?
(A) The Christian Calling is a Calvinist idea that says workers should choose only those occupations allowed in scripture.
(B) The Christian Calling is the Calvinist (and later, Mormon) conception of doing work that helps the congregation be successful in their Sabbath worship.
(C) The Christian Calling is primarily an Amish idea that includes working together in the community to help each other, as in the collective barn raising.
(D) The Christian Calling can include many different kinds of occupations, but the important point is to work hard and be successful in order to glorify God.
(E) The Christian Calling includes all the duties of the “mouth” (such as preaching and proclaiming the Gospel) in the community Body of Christ.
American nationhood has been affected by certain fundamental Puritan ideas. One in particular is the idea of the Christian Calling. This idea comes from the theologian John Calvin who greatly influenced Puritan beliefs. Calvin taught that Christians should be “workers in the world.” Workers in the world were to pursue a calling; some were to be brick masons, others merchants, and so on. All were to rise early in the morning, work hard, save their money and invest it wisely. Prosperity in their work indicated God’s approval. (See City Upon a Hill page 24.) 6. A grocery store recently dropped its discount program, but a certain employee likes to randomly give discounts to girls that he thinks are cute, in the hopes that it will one day land him a date. This practice is most closely analogous to which type of violation of the rule of law?
(D) Due Process
(F) No violation
Due process is a principle of the rule of law that requires laws to be administered impartially. In this example the principle is being violated because the discounts are being given only to those that the employee thinks are cute. This does not violate generality because the store did not write up a rule saying that only those that are cute will receive a discount. It violates due process because the employee is administering the discounts unfairly. Generality has to do with the writing of the law whereas du process has to do with the carrying out of the law. (See City Upon a Hill pages 35-38.) 7. The Anglan parliament recently passed a new, harsher penalty for drunk driving. Instead of just receiving a fine of $5,000 for the first offense, they now have to pay the $5,000 fine plus serve 10 years in jail for the first offense. As a result of the new policy the number of drunk-driving incidents has decreased dramatically. Which of the following economic principles best describes why the number of drunk-driving incidents has decreased?
By adding a 10 year sentence in jail to the $5,000 fine the Anglan parliament has essentially increased the “price” of drunk driving. The law of demand states that as the price goes up the demand goes down. As the “price” of drunk-driving has gone up, the number of drunk-drivers has gone down.
8. According to the law of supply, which of the following situations would be most likely to occur?
(A) Farmers rush to get hogs to the market before the price of the hogs increases.
(B) The price of digital watches has fallen so low that producers have decreased their production of them.
(C) With the price of milk rising, most dairy farmers are quitting the business and focusing their efforts on other products.
(D) Now that Sony, Atari, Microsoft, and Nintendo are all producing video games, the price of games is climbing out of sight.
(E) The price of gas has continued to rise the past few months, this has led to a decrease in the amount of driving that people do.
The law of supply observes that as the price of a particular good or service rises, suppliers will produce more of that good or service. The opposite is true as well; as the price of a good decreases, suppliers will produce less of that good, which is described in answer choice ‘B.’ Answer choices ‘A’ and ‘C’ describe situations that are contrary to the law of supply. Answer choice ‘D’ gives the wrong cause and effect; producing more video games won’t cause the price to rise, the price is what will determine the quantity of goods produced. And answer choice ‘E’ describes the law of demand which observes that as the price goes up consumers will demand less of that good. (See City Upon a Hill pages 54 & 303.) 9. A certain political leader has a very warm view of human nature and sees much of the conflict in the world arising from social institutions such as private property or competition. Of the alternatives to government discussed by City Upon a Hill, which would this leader most closely associate with?
(A) Classical Republicanism
Four alternatives to government are described in City Upon a Hill on pages 7-10. (Theocracy is a form of political legitimacy, not one of the described alternatives to government.) Liberalism is defined as the alternative to government that sees people in the most favorable light, but institutions or other influences can corrupt them so government is necessary to protect them from such corruption. 10. The Human Predicament Cycle is BEST illustrated by which of the following?
(A) Somalians riot when aid trucks from the United Nations run out of food.
(B) The poverty of medieval peasants in the kingdom of Genovia causes them to revolt against nobles and establish a democratic republic.
(C) The oppression of Kurds in Iraq causes them to flee into Turkey where they are initially received in refugee camps and then returned to Iraq.
(D) Haitian slaves revolt against their French masters and are then brutalized by a leader of the revolution, a former slave.
(E) An American Heritage student is stuck on one question and can’t choose between true or false.
See City upon a Hill page 3 for a description of the Human Predicament. 11. The text presents the social compact as a philosophical idea of the European Enlightenment; which of the following bests represents the idea of social compact?
(A) On the first day of class, students debate and vote on the class syllabus and class rules that they will follow.
(B) The class is designed to give autonomy to each student in deciding what tests and assignments he or she wants to do.
(C) A student who is retaking the class explains to the other students what it will be like based on his past experience.
(D) Students break into groups and brainstorm ideas for course improvement and then present them to the professor for approval.
See City upon a Hill pages 13 and 276-277 for a description of the social compact.
Historical Figures Matching: Match the following individuals to the idea or description they best represent.
Some exams will feature matching sections where you have to identify historical figures or documents that we have read in class, etc.
12. Considered the father of modern economics.
13. Believed that men enter into social contracts for the “mutual preservation of their lives, liberties, and estates…”
14. Invited to rule subject to the authority of Parliament
15. Defended the British soldiers after the Boston Massacre.
16. Was beheaded in English Civil War.
Answers to the matching section: