Question 1

It is sometimes difficult to see the difference between:

Accepted Answer

A)  inequality and the distribution of wealth. 
B)  risk and fair treatment. 
C)  exploitation and exchange. 
D)  fair treatment and equality. 
A)  inequality and the distribution of wealth. 
B)  risk and fair treatment. 
C)  exploitation and exchange. 
D)  fair treatment and equality. C

Question 2

Horse meat is banned for consumption in California because of meddlesome preferences.

Accepted Answer

A) True 
 B)False  True

Question 3

The maximin principle is used regularly by economists to rank countries.

Accepted Answer

A) True 
 B)False  False

Question 4

Under which circumstances would utilitarians favor a redistribution of income from poor individuals to rich individuals?

Accepted Answer

A)  always 
B)  if the marginal utility lost by the poor individuals was less than the marginal utility gained by the rich individuals 
C)  if the marginal utility gained by the poor individuals was less than the marginal utility lost by the rich individuals 
D)  never 
A)  always 
B)  if the marginal utility lost by the poor individuals was less than the marginal utility gained by the rich individuals 
C)  if the marginal utility gained by the poor individuals was less than the marginal utility lost by the rich individuals 
D)  never

Question 5

Suppose the sale of human kidneys was legal. If the seller of kidneys is well informed of the risks of the exchange, then:

Accepted Answer

A)  some people believe this is not exploitation, but instead simply a voluntary trade. 
B)  the price of kidneys will be lower. 
C)  wealthy individuals will be just as likely to sell their kidneys as poor individuals. 
D)  these types of exchanges would happen only in poor countries. 
A)  some people believe this is not exploitation, but instead simply a voluntary trade. 
B)  the price of kidneys will be lower. 
C)  wealthy individuals will be just as likely to sell their kidneys as poor individuals. 
D)  these types of exchanges would happen only in poor countries.

Question 6

Which statement is NOT correct?

Accepted Answer

A)  When economists evaluate a public policy they tend to count the benefits and costs to all individuals equally regardless of where they live. 
B)  National governments usually weight the preferences of their citizens more heavily than they do the preferences of foreigners. 
C)  If the gains to foreigners are counted as much as the gains to nationals are counted, Mexican immigration into the United States will look especially beneficial. 
D)  Economists believe that if the United States is making decisions about its immigration policy, it should weight the benefits accruing solely to the U.S. citizens. 
A)  When economists evaluate a public policy they tend to count the benefits and costs to all individuals equally regardless of where they live. 
B)  National governments usually weight the preferences of their citizens more heavily than they do the preferences of foreigners. 
C)  If the gains to foreigners are counted as much as the gains to nationals are counted, Mexican immigration into the United States will look especially beneficial. 
D)  Economists believe that if the United States is making decisions about its immigration policy, it should weight the benefits accruing solely to the U.S. citizens.

Question 7

The French government tries to support French culture by:

Accepted Answer

A)  placing a sales tax on French-made music. 
B)  specifying a minimum number of French-language movies that must be shown on TV. 
C)  encouraging cross-cultural exchanges with other European countries. 
D)  encouraging foreign-film producers to shoot in France. 
A)  placing a sales tax on French-made music. 
B)  specifying a minimum number of French-language movies that must be shown on TV. 
C)  encouraging cross-cultural exchanges with other European countries. 
D)  encouraging foreign-film producers to shoot in France.

Question 8

A priest who has maintained a vow of celibacy and believes in abstinence before marriage is said to have ______ preferences.

Accepted Answer

A)  exploitative 
B)  aggravated 
C)  transported 
D)  meddlesome 
A)  exploitative 
B)  aggravated 
C)  transported 
D)  meddlesome

Question 9

Which is an example of a normative economic statement?

Accepted Answer

A)  The United States should have a single-payer health care system because there are 44 million people uninsured. 
B)  People with more years of schooling live longer than people with fewer years of schooling. 
C)  The government subsidizes the purchase of health insurance through our place of employment. 
D)  People with below-average intelligence are more likely to get into car accidents. 
A)  The United States should have a single-payer health care system because there are 44 million people uninsured. 
B)  People with more years of schooling live longer than people with fewer years of schooling. 
C)  The government subsidizes the purchase of health insurance through our place of employment. 
D)  People with below-average intelligence are more likely to get into car accidents.

Question 10

A meddlesome preference is a(n):

Accepted Answer

A)  interpersonal opinion about one's self-discipline. 
B)  interpersonal opinion about one's motivation. 
C)  preference about other people's behavior, even when it does not affect you. 
D)  preference about how the government should reform tax law. 
A)  interpersonal opinion about one's self-discipline. 
B)  interpersonal opinion about one's motivation. 
C)  preference about other people's behavior, even when it does not affect you. 
D)  preference about how the government should reform tax law.

Question 11

People that suggest we should export pollution to poorer countries argue that:

Accepted Answer

A)  only the rich country would be better off as a result of this policy. 
B)  poor countries value money more than the cost of the pollution. 
C)  rich countries value money more than their health. 
D)  each country values pollution equally. 
A)  only the rich country would be better off as a result of this policy. 
B)  poor countries value money more than the cost of the pollution. 
C)  rich countries value money more than their health. 
D)  each country values pollution equally.

Question 12

If poor countries accept pollution from rich countries, both countries benefit.

Accepted Answer

A) True 
 B)False

Question 13

A meddlesome preference is a preference:

Accepted Answer

A)  that prevents other people form harming your personal property. 
B)  for liberty to be maximized. 
C)  for other people's certain behaviors, even when their current actions do not have a direct effect on you. 
D)  for tolerant and respectful differing viewpoints. 
A)  that prevents other people form harming your personal property. 
B)  for liberty to be maximized. 
C)  for other people's certain behaviors, even when their current actions do not have a direct effect on you. 
D)  for tolerant and respectful differing viewpoints.

Question 14

Positive statements are based on fact while normative statements are based on opinion.

Accepted Answer

A) True 
 B)False

Question 15

Here is an example of a positive statement: a market for kidneys would reduce the number of people who die waiting for a kidney.

Accepted Answer

A) True 
 B)False

Question 16

The text describes Larry Summers as supportive of the exportation of ______ to the ______.

Accepted Answer

A)  toxic waste; less-developed countries 
B)  toxic waste; developed countries 
C)  solar technology; less-developed countries 
D)  solar technology; developed countries 
A)  toxic waste; less-developed countries 
B)  toxic waste; developed countries 
C)  solar technology; less-developed countries 
D)  solar technology; developed countries

Question 17

Many things, like trading kidneys, are illegal because of:

Accepted Answer

A)  global trade restrictions. 
B)  meddlesome preferences. 
C)  wealth inequalities. 
D)  too low a market price. 
A)  global trade restrictions. 
B)  meddlesome preferences. 
C)  wealth inequalities. 
D)  too low a market price.

Question 18

Which is an example of a positive economic statement?

Accepted Answer

A)  The minimum wage should be higher. 
B)  It would be more efficient, and therefore preferable, to legalize drugs. 
C)  The government should restrict deficit spending and balance the budget. 
D)  Higher interest rates will lead to lower rates of inflation. 
A)  The minimum wage should be higher. 
B)  It would be more efficient, and therefore preferable, to legalize drugs. 
C)  The government should restrict deficit spending and balance the budget. 
D)  Higher interest rates will lead to lower rates of inflation.

Question 19

Many people disagree on whether immigration into the United States is beneficial or costly to its citizens. If the gains to foreigners are counted as much as the gains to U.S. citizens, then immigration would look:

Accepted Answer

A)  especially beneficial. 
B)  especially costly. 
C)  like a zero-sum game. 
D)  less utilitarian. 
A)  especially beneficial. 
B)  especially costly. 
C)  like a zero-sum game. 
D)  less utilitarian.

Question 20

Many economists argue that kidney sales are ________ exploitative because ________.

Accepted Answer

A)  not; they are a market exchange that leaves both recipients and donors better off 
B)  always; the rich on average benefit at the expense of the poor 
C)  not; the government could set low prices 
D)  always; you cannot put a price on life 
A)  not; they are a market exchange that leaves both recipients and donors better off 
B)  always; the rich on average benefit at the expense of the poor 
C)  not; the government could set low prices 
D)  always; you cannot put a price on life

Exam 21: Economics, Ethics, and Public Policy

It is sometimes difficult to see the difference between:

Horse meat is banned for consumption in California because of meddlesome preferences.

The maximin principle is used regularly by economists to rank countries.

Under which circumstances would utilitarians favor a redistribution of income from poor individuals to rich individuals?

Suppose the sale of human kidneys was legal. If the seller of kidneys is well informed of the risks of the exchange, then:

Which statement is NOT correct?

The French government tries to support French culture by:

A priest who has maintained a vow of celibacy and believes in abstinence before marriage is said to have ______ preferences.

Which is an example of a normative economic statement?

A meddlesome preference is a(n):

People that suggest we should export pollution to poorer countries argue that:

If poor countries accept pollution from rich countries, both countries benefit.

A meddlesome preference is a preference:

Positive statements are based on fact while normative statements are based on opinion.

Here is an example of a positive statement: a market for kidneys would reduce the number of people who die waiting for a kidney.

The text describes Larry Summers as supportive of the exportation of ______ to the ______.

Many things, like trading kidneys, are illegal because of:

Which is an example of a positive economic statement?

Many people disagree on whether immigration into the United States is beneficial or costly to its citizens. If the gains to foreigners are counted as much as the gains to U.S. citizens, then immigration would look:

Many economists argue that kidney sales are ________ exploitative because ________.

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Public Goods and the Tragedy of the Commons

Political Economy and Public Choice

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters

The text describes Larry Summers as supportive of the exportation of to the .

Many economists argue that kidney sales are exploitative because .