Econ 11

Prof Woolf

Homework 1 Due Jan 24, 2005

Part I.

In chapter 1, answer the following problems and applications

4, 5, 7, 8, 9

Part II

The Commanding Heights

Episode One, “The Battle of Ideas”

Watch chapters 1-19 (about 2 hours of viewing on your PC) at http://www.pbs.org/wgbh/commandingheights/hi/story/index.html

Briefly answer the following questions (2 or 3 sentences):

1. What are the “commanding heights” of the world’s economies? Why should we care about who controls them?

2. Who were the Bolsheviks?

3. Why were the Bolsheviks opposed to capitalism?

4. Who was John Maynard Keynes?

5. Why was Keynes opposed to the Treaty of Versailles?

6. Who were Lenin and Stalin?

7. What changes did Stalin make to the Soviet economy once assuming power after Lenin?

8. How did Keynes describe the relationship between the failure of capitalism and the rise of fascism?

9. What did Hayek argue in The Road to Serfdom?

10. Who was Margaret Thatcher?

11. Why was she important?