Question 1

A cosmopolitan utilitarian thinker would likely support:

Accepted Answer

A)  more immigration. 
B)  the same amount of immigration. 
C)  more immigration restrictions. 
D)  no immigration. 
A)  more immigration. 
B)  the same amount of immigration. 
C)  more immigration restrictions. 
D)  no immigration.

Question 2

The economic reasoning for importing kidneys is that:
I. trade may save many kidney-failure patients' lives.
II. people who are allowed to sell their kidneys earn more income.
III. buyers and sellers of kidneys can both be made better off by trade.

Accepted Answer

A)  II only 
B)  II and III only 
C)  I and III only 
D)  I, II, and III 
A)  II only 
B)  II and III only 
C)  I and III only 
D)  I, II, and III

Question 3

Which is a normative economic statement?

Accepted Answer

A)  Raising the price of new textbooks will lead students to seek more used textbooks. 
B)  Raising the price of new textbooks will lead students to buy fewer new textbooks. 
C)  Publishers should not raise the price of new textbooks. 
D)  The price of new textbooks will rise if transportation costs and costs of paper rise. 
A)  Raising the price of new textbooks will lead students to seek more used textbooks. 
B)  Raising the price of new textbooks will lead students to buy fewer new textbooks. 
C)  Publishers should not raise the price of new textbooks. 
D)  The price of new textbooks will rise if transportation costs and costs of paper rise.

Question 4

President Obama said, "I think when you spread the wealth around, it's good for everybody." What theory of social justice is least consistent with the President's remarks?

Accepted Answer

A)  Marxism 
B)  utilitarianism 
C)  Rawls's maximin principle 
D)  Robert Nozick's entitlement theory 
A)  Marxism 
B)  utilitarianism 
C)  Rawls's maximin principle 
D)  Robert Nozick's entitlement theory

Question 5

Which is NOT a normative economic statement?

Accepted Answer

A)  Import restrictions on sugar will increase sugar prices. 
B)  The government should limit imports of sugar. 
C)  Schools need to limit their students' sugar intake. 
D)  Import quotas on sugar are unfair to foreign sugar sellers. 
A)  Import restrictions on sugar will increase sugar prices. 
B)  The government should limit imports of sugar. 
C)  Schools need to limit their students' sugar intake. 
D)  Import quotas on sugar are unfair to foreign sugar sellers.

Question 6

John Rawls argued that a government should maximize the benefits going to society's most disadvantaged class.

Accepted Answer

A) True 
 B)False

Question 7

Which is a normative economic statement?

Accepted Answer

A)  Tests should always be hard to ensure that students are challenged. 
B)  Quantity demanded for steak will fall if the price of steak rises. 
C)  Hot dogs and hot dog buns are generally complementary goods. 
D)  Each of these three statements uses normative economics. 
A)  Tests should always be hard to ensure that students are challenged. 
B)  Quantity demanded for steak will fall if the price of steak rises. 
C)  Hot dogs and hot dog buns are generally complementary goods. 
D)  Each of these three statements uses normative economics.

Question 8

The case for exporting pollution from rich countries to poor countries is based on:

Accepted Answer

A)  the power of politics. 
B)  the power of coercion. 
C)  the power of trade. 
D)  monopoly power. 
A)  the power of politics. 
B)  the power of coercion. 
C)  the power of trade. 
D)  monopoly power.

Question 9

Nobel Prize-winning economist Gary Becker:

Accepted Answer

A)  opposes a market for human organs because it will lead to poor people selling their organs to rich people. 
B)  proposes a market for human organs to help eliminate the shortage of organs. 
C)  supports raising the minimum wage to reduce inequality. 
D)  favors occupational licensing standards to prevent consumers from being harmed by incompetent providers. 
A)  opposes a market for human organs because it will lead to poor people selling their organs to rich people. 
B)  proposes a market for human organs to help eliminate the shortage of organs. 
C)  supports raising the minimum wage to reduce inequality. 
D)  favors occupational licensing standards to prevent consumers from being harmed by incompetent providers.

Question 10

Most university officials believe students should exercise regularly and thus charge them a mandatory gym fee so that they can regularly use university gym facilities. Many students do not use the gym facilities and would prefer to use the money for textbooks or food. Which argument against standard economic reasoning can be applied to this scenario?

Accepted Answer

A)  fair and equal treatment 
B)  cultural goods and paternalism 
C)  poverty, inequality, and the distribution of income 
D)  exploitation 
A)  fair and equal treatment 
B)  cultural goods and paternalism 
C)  poverty, inequality, and the distribution of income 
D)  exploitation

Question 11

An infertile person who lobbies against abortion is said to have ______ preferences.

Accepted Answer

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

Question 12

A wealthy merchant named Ulysses wishes to buy a stolen car so he can use it in a demolition derby. Chloe, a school teacher who makes barely enough money to cover her living expenses, also wishes to buy the car so she can get to work in the morning. According to Nozick, why shouldn't Ulysses be allowed to buy the car?

Accepted Answer

A)  Chloe values it more. 
B)  Chloe is poorer than Ulysses. 
C)  The car is stolen. 
D)  The bidding system for the car will unjustly favor Ulysses. 
A)  Chloe values it more. 
B)  Chloe is poorer than Ulysses. 
C)  The car is stolen. 
D)  The bidding system for the car will unjustly favor Ulysses.

Question 13

Consider a regulation prohibiting non-law enforcement people from carrying firearms. Could this be an example of meddlesome preferences? Explain why or why not.

Accepted Answer

Prohibiting people from carrying firearm

Question 14

Think of an example other than the market for human kidneys that is illegal because it is believed to be exploitative. Make two arguments: first, this market is exploitative and should be illegal; second, from an economic point of view, the market does not exploit and should be legal.

Accepted Answer

Student answers will vary depending on t

Question 15

Preferences about what other people do are often called meddlesome preferences.

Accepted Answer

A) True 
 B)False

Question 16

The maximin principle is influential among philosophers but less so among economists because economists contend that:

Accepted Answer

A)  a little bit less income for the worst-off might be acceptable if it comes with a big enough gain to others. 
B)  lower average income might be acceptable if income is more equally divided. 
C)  higher average income is always better. 
D)  a larger income inequality may be acceptable if the worst-off are less productive. 
A)  a little bit less income for the worst-off might be acceptable if it comes with a big enough gain to others. 
B)  lower average income might be acceptable if income is more equally divided. 
C)  higher average income is always better. 
D)  a larger income inequality may be acceptable if the worst-off are less productive.

Question 17

In May 2010, the New York Times ethicist, Randy Cohen, described a scenario of one person donating his kidney to another person. Later, the donor experiences some financial trouble and the receiving person considers helping them out with a financial gift. Economist Greg Mankiw continues: "So what does the Ethicist say about all this? Apparently, both of these gifts are noble acts, worthy of the highest praise and admiration. Unless, that is, there is some reason to think they are linked together. In that case, the reallocation of resources (kidney, cash) would be a despicable market transaction."
Based on this information, which is the most likely explanation for the Ethicist's disapproval of selling kidneys?

Accepted Answer

A)  meddlesome preferences 
B)  fair and equal treatment 
C)  cultural goods 
D)  distribution of income 
A)  meddlesome preferences 
B)  fair and equal treatment 
C)  cultural goods 
D)  distribution of income

Question 18

According to entitlement theory, meddlesome preferences are:

Accepted Answer

A)  warranted. 
B)  warranted in some cases and unwarranted in others. 
C)  unwarranted. 
D)  difficult to identify. 
A)  warranted. 
B)  warranted in some cases and unwarranted in others. 
C)  unwarranted. 
D)  difficult to identify.

Question 19

Which is a positive economic statement?

Accepted Answer

A)  Raising the price of steak should be a priority for a government that wishes to protect animal rights. 
B)  An export market that transports pollutants to less-developed countries will increase their short-run GDP. 
C)  The government should limit earnings for top management in corporations. 
D)  The government should not provide bailouts to corporations in financial trouble. 
A)  Raising the price of steak should be a priority for a government that wishes to protect animal rights. 
B)  An export market that transports pollutants to less-developed countries will increase their short-run GDP. 
C)  The government should limit earnings for top management in corporations. 
D)  The government should not provide bailouts to corporations in financial trouble.

Question 20

Provide at least three normative economic statements that politicians often make about immigration?

Accepted Answer

Immigrants cost us our jobs; we should m

Exam 21: Economics, Ethics, and Public Policy

A cosmopolitan utilitarian thinker would likely support:

The economic reasoning for importing kidneys is that: I. trade may save many kidney-failure patients' lives. II. people who are allowed to sell their kidneys earn more income. III. buyers and sellers of kidneys can both be made better off by trade.

Which is a normative economic statement?

President Obama said, "I think when you spread the wealth around, it's good for everybody." What theory of social justice is least consistent with the President's remarks?

Which is NOT a normative economic statement?

John Rawls argued that a government should maximize the benefits going to society's most disadvantaged class.

Which is a normative economic statement?

The case for exporting pollution from rich countries to poor countries is based on:

Nobel Prize-winning economist Gary Becker:

An infertile person who lobbies against abortion is said to have ______ preferences.

Consider a regulation prohibiting non-law enforcement people from carrying firearms. Could this be an example of meddlesome preferences? Explain why or why not.

Think of an example other than the market for human kidneys that is illegal because it is believed to be exploitative. Make two arguments: first, this market is exploitative and should be illegal; second, from an economic point of view, the market does not exploit and should be legal.

Preferences about what other people do are often called meddlesome preferences.

The maximin principle is influential among philosophers but less so among economists because economists contend that:

According to entitlement theory, meddlesome preferences are:

Which is a positive economic statement?

Provide at least three normative economic statements that politicians often make about immigration?

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

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