Define Collective Action Problem – give examples. How to fix them?
What makes an economy successful? Why is capitalism the best system for making an economy successful?
What are the 4 states? Compare and contrast. Which will lead to a successful polity?
Failed State:
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In a failed state, private interest groups compete with one another to control the government and the political process. At this point, the government lacks the power to carry out its duties to provide law and order to its citizens. A failed state maintains legal sovereignty but experiences a breakdown in political power, law enforcement, and civil society, leading to a state of near-anarchy.
What is the importance of the civil society to a successful economy? How can a community fail? What can be done to rehabilitate it?
Are markets and capitalism the same thing? What prerequisites does capitalism require that were present in Britain?
What led to the rise of mercantilism?
How did mercantilism interfere or work against the rise of capitalism? How did it promote it?
In the conclusion to chapter 4, Clark says a developmental state is necessary for a successful economic system, but they can easily become predatory states. What policy reforms could prevent or reverse this movement towards a predatory state?
