Glorious Revolution and Economic Change

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Questions and Answers

What does the concept of a dual economy entail?

An economy with two distinct sectors that vary in productivity (correct)

An economy that experiences rapid and consistent growth

A structured economy with equal levels of prosperity for all sectors

A situation where there is only one dominant economic sector

What is one of the main ways slave trade hindered development in Africa?

It created diverse and sustainable economies

It led to significant infrastructure improvements

It reinforced extractive institutions (correct)

It fostered long-term economic investments

Which event exemplifies the transformation from Roman Republic to Roman Empire?

The promotion of provincial autonomy

The centralization of power under elite monopolies (correct)

The establishment of democratic governance

The introduction of direct voting for all citizens

Which of the following is an example of colonial extractive institutions?

The tribute system of the Aztec empire Signup and view all the answers

What academic concept did Sir William Arthur Lewis propose in 1955?

The dual economy Signup and view all the answers

What is the role of inclusive institutions in economic growth?

They encourage broad participation and investment. Signup and view all the answers

What characterizes a negative feedback loop in economic institutions?

Concentration of power and resources. Signup and view all the answers

How do political institutions support inclusive economic institutions?

By facilitating checks and balances. Signup and view all the answers

What is the primary effect of resistance mechanisms on industrialization?

They prevent legislative changes. Signup and view all the answers

Which example represents a positive feedback loop in an economic context?

System of checks and balances encouraging innovation. Signup and view all the answers

What is the Iron Law of Oligarchy regarding political systems?

Systems evolve into oligarchies over time. Signup and view all the answers

What are some mechanisms used to resist reforms that promote industrialization?

Political manipulation and coercion. Signup and view all the answers

Which of the following is a benefit of industrialization?

Improvement in living standards. Signup and view all the answers

What is a critical juncture?

Periods that provide opportunities for institutional change. Signup and view all the answers

What was one major outcome of the Glorious Revolution in England?

The establishment of more democratic institutions. Signup and view all the answers

How did the Bill of Rights impact the English monarchy?

It curtailed the monarchy's powers and enhanced parliamentary control. Signup and view all the answers

What does secure property rights entail?

Clear legal rights to own and manage property. Signup and view all the answers

What was a negative impact of the Industrial Revolution?

Job displacement and income inequality. Signup and view all the answers

What does creative destruction refer to?

Innovation that disrupts old technologies and businesses. Signup and view all the answers

What is an impact of creative destruction on the economy?

Creation of new industries and job opportunities. Signup and view all the answers

What challenge is associated with creative destruction?

Inequitable distribution of technology benefits. Signup and view all the answers

Study Notes

Critical Junctures

Significant events disrupting institutional frameworks, providing opportunities for change.
Examples include shifts in ruling styles.

Impact of the Glorious Revolution (1688)

Led to more inclusive political and economic institutions in England.
Shift from a monarchy to a more democratic system.

Timeline of the Glorious Revolution

Early stages: Monarchy held significant power; Parliament dominated by elites.
Glorious Revolution: Curbed monarchy authority; Parliament gained greater power.
Bill of Rights: Reduced risk of property confiscation.
Rise of the Mercantile Class: encouraged investment in financial institutions and secure property rights

Secure Property Rights

Clear legal ownership and management of individual and business assets.

Negative Impact of Industrial Revolution

Benefits unevenly distributed.

Creative Destruction

Ongoing process of innovation, disrupting and replacing existing ideas, technologies, and businesses.

Impact of Creative Destruction

Results in increased efficiency, lower costs, and improved products/services.
Raises standards of living.
Creates new industries and jobs.

Challenges of Creative Destruction

Job displacement,
Income inequality (digital divide).

Capitalism and Creative Destruction

Debate about whether capitalism hinders or contributes to creative destruction due to competition.

Positive Feedback Loops

Inclusive institutions encourage broad participation and investment in the economy leading to greater economic growth thus reinforcing the need for inclusive institutions.

Negative Feedback Loops

Extractive institutions create a vicious cycle concentrating power in the hands of a few, leading to economic stagnation.

Impact of Political Institutions

Important for inclusive economies, checks and balances, equitable distribution of power.

Positive Feedback Loop/Virtuous Cycle Example

US system of checks and balances, protecting individual rights.

Benefits of Industrialization

Economic growth, higher productivity, increased living standards.

Examples of Resistance to Change

Ottoman Empire,
Latin American elites,
Absolutist monarchies.

Dual Economy Meaning

Country with two economic sectors with varying levels of productivity and prosperity.
Modern and traditional sectors exist.

Slave Trade Hindrance

Disruption, depopulation, and prioritization of short-term gains.

Development in Africa (Specific Issue)

Reinforcements of extractive institutions, lack of positive spillovers.

Proponent of the Dual Economy

Sir William Arthur Lewis (1955)

Iron Law of Oligopoly

All political systems tend toward oligarchy despite democratic ideals.

Examples of Extractive Institutions

Belgian Congo, British India.
Mexico: Aztec empire
Ghana: pre-colonial networks of trade and social mobility

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Description

Explore the significant events surrounding the Glorious Revolution of 1688 and its lasting impact on political and economic structures in England. This quiz covers critical junctures, secure property rights, and the evolution of democracy. Test your understanding of how these changes influenced modern governance and economic development.