MIDTERMM

1. Explain the difference between the Christian Paternalism of the European Medieval Ages and the Protestant Individualism that began to dominte Europe in the 16th and 17th centuries. 

2. List and explain three changes to technology and institutions that took place in the transition from European feudalism to capitalism.

3. Explain the key institutional features of medieval Europe (the relationship between serfs and lords, as well as the dominant ideology of that era). Elaborate.

4. Explain the difference between the Nightwatchman view of capitalist governments and the Social Democratic view of capitalist governments.

5. Explain the major differences between LME (Liberal Market Economies) forms of capitalism and CME (Coordinated Market Economies) types of capitalism. Name three countries that fall into the LME type, and three countries that fall into the CME type. 

6. Starting with the classic circular flow model, derive algebraically an equation showing gross profits as a function of gross investment. This is Michael Kalecki’s famous profit equation. What does this equation say about the relationship between spending and income for the two major classes of a capitalist society, capitalists and workers?