7.

Although the aim of the book is to introduce people to different schools of thought in
economics, that doesnt mean they can believe that every one is correct. This is so
because they contain what? [3 words]
Mutually exclusive propositions
8. What are we taught in primary and secondary school about science? [17 words]
That it is methodical, experimental, and objective and that the world it studies has particular
innate characteristic.
9. Harvey argues that bias is inevitable in our attempts to understand the world. What
example does he give in support of this in terms of setting up a chemistry experiment?
[34 words]
If you suspect that a chemical process may generate heat, then you set
up a thermometer to measure it; if you do not expect it, then you may not
use a thermometer at all.
10. What is something that scientists can really accomplish (given the fact that they
cant actually discover unbiased truths)? [5 words]
Practical sense of the world
11. Many factors affect the acceptance of a theory or model, some reasonable and some
not, some outside of science and some within it. Those most associated with Behavioral
Standards. Briefly explain what these are, what happens if violated, and what the result
of conspicuous adherence may be (including the especially). [60 words]
While no school of thought has complete homogeneity, behavioral
standards are certain core values, practices and beliefs which each
member must follow to remain in good standings. If they are violated, the
member bears the risk of loss of status or expulsion. If there is
conspicuous adherence, the member enjoys increased prestige or
promotion.
12. What, in terms of subject matter, is the central focus of undergraduate economics
(and what does this mean)? [35 words]
how to think like an economist. What this means is learning to evaluate
alternatives in a formalized cost- benefit framework and to consider the
incentives facing individuals and how these might create unanticipated
consequences.
13. What is the concern of those who are not as enthusiastic regarding the manner in
which we teach undergraduate economics and what does their view imply? [100 words;
you can leave out the bit about multiple-choice exams but include the stages of learning
stuff]
Portraying our discipline as completely objective and free of controversy is
not only false, but it leaves students at the stage of dualism, where all
questions are viewed in black and white with decidedly right and wrong
answers as opposed to moving them to higher stages of cognitive
development (multiplicity, contextual relativism, and contextually
appropriate decisions). This view implies that while the average
economics major graduates with excellent problem- solving skills, whether
or not she is equipped to understand where to apply them, what

limitations they may have, and when other approaches might be more
appropriate is an open question.
14. The change in the mix and content of courses in economics graduate school is a
function of what heavy shift? [5 words]
Toward developing advanced mathematical skills
15. The basic training of most economists includes the idea that qualitative data are
inherently suspect and that they should therefore rely on abstract reasoning and
intuition. But how, in their view, does this not result in uncontrolled speculation? [23
words]
Economists use mathematics. This provides the rigor necessary to apply
basic economic principles to complex problems while at the same time
maintaining objectivity.
16. Although the vast majority of published articles have very little impact, it is as least
true that those who publish regularly are more likely to do what? [7 words]
Keep up with developments in their field
17. What is the most challenging part of an assistant professors portfolio-building
process? [1 word]
Research
18. What percentage of papers received a rejection or a revise and resubmit at journals?
[range of percentages]
75-90%
19. Where do economic schools of thought really exist and evolve? [7 words]
Pages of books and especially journals
20. What are the key primary standards of behavior in economics? [41 words]
The subject matter, the belief that the world can be understood via the
systematic study of its observed characteristics, and that skepticism,
objectivity, and respect for logic and reason are the values most likely to
lead to useful and reliable explanations.
21. After Table 2.1, there is a summary of the foci of the secondary standards of
behavior during the undergraduate, graduate, and apprenticeship periods. Summarize
each in no more than a sentence. [25 words]
Undergraduate: defining the discipline: what is economics? Economic behavior is described
as law-like and tending toward equilibrium.
Graduate: method. Deduction over induction, lack of concern for historical and institutional
considerations in model assumption, more mathematics.
Apprenticeship: journal research with a strict hierarchy of journals.
22. Harvey says that the imperfect nature of scientific inquiry should lead us to what
conclusion? Instead, what do the incentives and structure of our discipline actually
encourage and how is this created by the undergraduate and graduate education and
apprenticeship (give at least a sentence on the first two stages and a couple on the third
one)? Why is it liable to continue even after the last stage is complete? [234 words]

Debate among a plurality of perspectives (assuming that each is faithful

to the values of skepticism, objectivity, and respect for logic and evidence
in the development of systematic studies) is the process most likely to
generate useful and reliable explanations of economic phenomena.
Instead, the incentives that exist in our discipline encourage monism
when we need pluralism, consent when real progress is more likely with
dissent.
Undergraduate level: the textbook culture, combined with Neoclassicisms
tendency to portray economics as completely objective, teaches the
student that there is one and only one school of thought.
Graduate level: teaching a methodological approach most consistent with
that one approach. Apprenticeship: when the neophyte invests a
tremendous amount of intellectual capital while trying to earn tenure.
Building the most critical component of the assistant professors portfolio,
that related to research, is time consuming, intellectually challenging, and
uncertain. This is not the stage of ones career to be taking a lot of
chances, particularly since it is also a time when one is so busy with new
teaching and service responsibilities. Strict adherence to primary and
secondary standards is the rule for those who wish to survive. Later, one
can take on the economics establishment and accepted theoryright now,
you just need to get tenure! But, after six years of following these rules
and abiding by all primary and secondary standards, including, in
particular, any journal rankings your department employs, the tenured
economist is unlikely to stray.
International Student Initiative for Pluralism in Economics: http://www.isipe.net/
23. Check out the web page of the International Student Initiative for Pluralism in
Economics and find their Open Letter (main address listed above). In three or four
sentences, what do they mean by theoretical pluralism? [47 words]
Theoretical pluralism emphasizes the need to broaden the range of schools of thought
represented in the curricula. It is not the particulars of any economic tradition we object to.
Pluralism is not about choosing sides, but about encouraging intellectually rich debate and
learning to critically contrast ideas. Where other disciplines embrace diversity and teach
competing theories even when they are mutually incompatible, economics is often presented
as a unified body of knowledge.
Richard McIntyre, Revolutionizing French Economics, Challenge Magazine
http://www.econ.tcu.edu/harvey/30243/RevolutionizingFrenchEconomics.pdf
24. What did the June 2000 French economics students protest argue? [43 words]
Economics teaching was flawed in that it pursued mathematics as an end in itself, that the
dominance of the neoclassical doctrine, that the dominance of the neoclassical tradition was
repressive and unjustified, and that the dogmatic teaching style of most economists left no
room for critical or reflective thought.
Professor John Kings Keith Hancock Lecture 2012 (from about 5:00 to 13:00)
http://youtu.be/b2i8G_NaCTo
25. What statement does John King make regarding the character of the economics
discipline (starting around 9:54) that he then supports with three pieces of evidence? [25
words]

Economics is unique among the social sciences in having single monolithic mainstream
which is either unaware of or actively hostile to alternative approaches.
26. What are John Kings three pieces of evidence in support of his claim regarding the
character of the economics discipline? Other than the reference to the Politics
department at Oxford, dont worry about the specific names or numbers he mentions.
[63 words]
Interview with Kurt Rothschild (Heterodox Economics/Dissenting Economics on Google vs
Heterodox Sociology/Psychology)
Post-war history of social sciences: chapter on economics edited by economists of a single,
unified mainstream.
Stephen Whitefield, Oxford Politics department, described his department as pluralist. He
reported this to the Heterodox News Letter, asked whether any economics department could
claim the same thing, and received no reply.
27. What TCU professor does John King mention in his speech? [name]
Rob Garnett
Professor James Galbraith on the Economics Profession
http://youtu.be/O3zH87gA2G0
28. Professor Galbraith believes that the politics and sociology of the economics
profession are such that they discourage innovation, creativity, and debate. What is the
very first thing he blames for this problem? [3 words]
Hierarchy of Journals
He goes on to say that in most high-level departments, economists are preoccupied with
what and not interested in what and what? [7 words]
Their own puzzles
Macroeconomics, Economic policies
How does their preoccupation fit into Kuhns description of science? [5 words]
In accord with the paradigms established theory
THE NEOCLASSICAL MAINSTREAM
Harvey Neoclassicism
http://www.econ.tcu.edu/harvey/JTHCPE/03_Neoclassicism.pdf
32. Neoclassical economists prefer a priori reasoning due to their beliefs regarding the
proper means of developing premises. What is their argument with respect to premises
based on observation (based on Scottish Common Sense Philosophy) and what do they
believe we should do instead? [71 words]
Premises from observation are easily biased because they can reflect what
the researchers want to see. Hence, you may end up inadvertently
proving whatever you thought was suspected in the first place. For that
reason, the Marginalists argued, we should build premises based on
introspection and make them so self-evident as to be beyond question.
This requires that we build economic arguments by starting with axiomatic
first principles (a priori premises) based on abstract reasoning rather than
observation.
33. Two factors led to the post-WWII dominance of Neoclassical economics, one

occurring during the war (although related to immediate pre-WWII period) and one
after. Explain each briefly (including why a particular contrast with respect to the first
was important). [132 words; note that the first occurred during the war and the second
after]
During WW2: Marginal analysis proved to be very useful in solving
allocation and maximization problems under the conditions of full
employment that the conflict created in the United States. [] It was
therefore all the more striking when, in the full-employment environment
of World War Two, tools based on the same concepts as illustrated in the
production possibility frontier were employed with great success and in
contexts well beyond the economy.
A second factor that affected the popularity and development of
Neoclassical economics was the Cold War antagonism toward any analysis
that did not argue that capitalism was best. This created an atmosphere
which favored schools of thought whose analyses were more inclined to
suggest that market solutions were best. While Neoclassicism certainly did
not blindly support capitalism, its conclusions were generally more
friendly to free markets than those of Institutionalism and followers of
Keynes.
34. Beginning by telling where their initial focus is, explain why examinations of history
and institutions of only minor interest to Neoclassicals. [33 words]
Economic behavior is law-like and universal in the sense that a model that applies to
everyone. Like human physiology, if we know how humans digest food today, then we know
how they digest food everywhere across time and space.
35. At what level do Neoclassicals believe that economic behavior truly reveals itself? [1
word]
Individual
36. What does it mean to say that Neoclassicism uses an as-if method? [23 words]
People are not actually rational, self-interested, and decision makers at
the margin, only that they act as if they were rational, self-interested, and
decision makers at the margin.
37. Critiques of Neoclassicism may come from many different directions, but what is
one point about which they would each agree? [8 words]
They feel blocked out of the conversation.
THE MARXIST SCHOOL
Harvey Marxism
http://www.econ.tcu.edu/harvey/JTHCPE/04_Marxism.pdf
42. According to Marx, when do worldviews change? [21 words]
Marx believed that reality changed ideas. Changes in economic system
lead to the need for new philosophy that can justify the new changes.
43. Marx thought that capitalism did serious psychological damage to the worker (he
called this alienation). People should, he believed, have the power to control their own

destinies in what respect? [37 words; four things]

They should be free to choose what they produce, to determine how that
product will be used, to cooperate with (rather than compete against)
their fellow workers, and to decide what skills they would like to develop.
44. Once recovery is well underway and the economy is booming, how is it that Marx
thinks the credit market encourages overinvestment? [47 words]
Once recovery is well underway and the economy is booming, interest
rates may remain low as new suppliers of financial credit, including
speculators, enter the market. However, they often do so with few to no
real resources backing their activities.
45. Marx expected the above cycle of expansion and recession to repeat over and over
under capitalism and become increasingly severe. Why did he think that, what did he
think would happen throughout that process (two things), and eventually who will
expropriate the expropriators? [47 words]
Because of the tendency of the long-run rate of profit to decline, he
expected that these crises would become increasingly severe, with
business failures and unemployment reaching ever higher peaks.
Throughout this process, the gap between rich and poor would grow and
industry would be monopolized by an ever-shrinking number of capitalists.
Eventually, the workers will expropriate the expropriators.
46. What eliminates the need for the division of labor under communism? [5 words]
The tremendous level of productivity
47. How did Lenin view WWI? [23 words]
a fight among imperialist powers each hoping to secure access to parts of
the globe from which surplus value could be drained.
48. Who did Mao Zedong say was the true mechanism for socialist revolution, about
what was he very explicit in terms of resolving the capitalist contradictions, and what
did he think would be necessary (and why) even once the revolution was accomplished?
[43 words]
The rural peasantry was the true mechanism for socialist revolution, not
the urban proletariat. Also, Mao stressed the need for violence, especially
guerrilla warfare, to resolve the contradictions that emerged under
capitalism. Once accomplished, bourgeois values would continue to
permeate society, requiring a second cultural revolution.
49. Give the modern Marxist explanations of exploitation based on the basic inequity,
Rawlsian justice, and the ownership of the means of production by capitalists. [135
words]
A basic inequity exists in the fact that the worker must show up on the
factory floor to sell their labor power, while the capitalist can earn
profits on a yacht in the Carribean (Hodgson 1980). Without the former
punching the clock every morning, the latter could not enjoy this lifestyle.
Rawlsian justice: given how the system is organized, do I care which role I
am assigned (Rawls 1971)? If one class were not exploited by the other,
then people would be indifferent as to whether or not they ended up being

a worker or a capitalistbut clearly they are not! Capitalism must therefore

be exploitative.
That workers have no option but to submit to the will of those who own
the means of production is sufficient to show that they are at a significant
disadvantage, regardless of what theory of justice one might employ. In all
these instances, class mobility only changes which individuals are
exploited, not the fact that capitalism is exploitative.
50. One common criticism focuses on Marxists allegation that workers are defacto
slaves of the capitalists and are thereby exploited and alienated. Neoclassicals and
Austrians see the relationship between worker and employer as obviously mutually
beneficial or the former would not choose to be associated with the latter. What analogy
is used to show the Marxist response to this? [32 words]
An individuals having the options to work with which employer is like a
slaves being permitted to pick one plantation over another. The choice is
illusory. The reality is dependence.
51. How do Marxists respond to the accusation that the collapse of communism shows
that their theories are flawed? [77 words]
What was implemented in the Soviet Union and its satellites was hardly what Marx had in
mind. He was rooted more in the Western liberal tradition, where democracy and individual
rights were considered foundational elements. Instead, what happened under Stalin, et al, was
distinctly Russian. It drew its inspiration from their national tradition, which was much more
autocratic and was only Marxist in the sense that it was engineered by revolutionaries who
considered themselves to be Marxists.
RSA Aminate of David Harveys Marxist explanation of the financial crisis
https://www.youtube.com/watch?v=qOP2V_np2c0
52. David Harvey offers a brief review of five standard explanations of the financial
crisis and then gives a Marxist one based on the key factor being the internal
contradictions of capitalism. He looks first at how the manner in which economic
problems were addressed in the 1970s set the stage for the Financial Crisis. First, which
group, specifically, was disciplined by Margaret Thatcher and Ronald Reagan? [1 word]
Labor
Second, Harvey says it was the excessive power of which group that led to our current
woes? [2 words]
Finance capital
Third, in what way was wage repression a problem for capitalists and how was this
addressed? [12 words]
Wage repression leads to lower consumption. Give everybody a credit card.