INSTITUTIONAL ECONOMICS: SECOND EXAMINATION

• Please answer 2 questions, one from each section.
• Read the questions carefully. Before answering the question, spend a few minutes to make some brief notes.
• Only authorised dictionaries should be used during the examination.
• If you require more writing paper or have any queries, please raise your hand.
• Please allow sufficient time to complete two questions (one hour for each question).

• Students will not be allowed to leave the room 15 minutes before the end of the examination. If you have any spare time, check over your answers.

1. Assess the significance of institutional economics.

2. Evaluate the claim that old institutional economics is an improvement upon new institutional economics.

3. Discuss the problems of positivism and quantitative analysis in economics. What are the alternative approaches to research and analysis?

4. ‘If economics is to become relevant, it has to learn from biology.’ Discuss this statement.

5. Discuss the different ways in which social order (or ‘collective action’) can be coordinated.

6. Discuss the relative strengths and weaknesses of old and new institutional economics in their particular analysis of the market exchange and contract.

7. ‘A firm is only a collection of internal labour contracts.’ Discuss this statement.