Question 1

The notion of fair and equal treatment can:

Accepted Answer

A)  match the value of trade and efficiency. 
B)  be irrelevant to the value of trade and efficiency. 
C)  enhance the value of trade and efficiency. 
D)  run up against the value of trade and efficiency. 
A)  match the value of trade and efficiency. 
B)  be irrelevant to the value of trade and efficiency. 
C)  enhance the value of trade and efficiency. 
D)  run up against the value of trade and efficiency.

Question 2

An unintended consequence of the French government's support for French-language movies is that:

Accepted Answer

A)  it lowers the quality of French movies. 
B)  it increases the quality of French movies. 
C)  it makes French movies more internationally competitive. 
D)  it has no effect on the viewing habits of French movie fans. 
A)  it lowers the quality of French movies. 
B)  it increases the quality of French movies. 
C)  it makes French movies more internationally competitive. 
D)  it has no effect on the viewing habits of French movie fans.

Question 3

Someone who believes that the sale of kidneys by the poor is exploitative would find which of the following price tags for a kidney most exploitative?

Accepted Answer

A)  $0 
B)  $250 
C)  $10,000 
D)  $50,000 
A)  $0 
B)  $250 
C)  $10,000 
D)  $50,000

Question 4

If one person wants a kidney more than the money and the other wants the money more than the kidney, they can be better off by trade.

Accepted Answer

A) True 
 B)False

Question 5

Commercial fishing in Alaska is generally considered exploitative because of the high degree of risk involved for only one side of the transaction (the fishermen).

Accepted Answer

A) True 
 B)False

Question 6

In economics, there is a concept called Pareto optimality. This is the concept whereby parties trade until neither one can be made better-off without making the other worse-off. At that point, both parties are said to have reached a state that is Pareto optimal. Do you think the market for kidneys enjoys Pareto optimality? Why or why not?

Accepted Answer

No, because there are both willing buyer

Question 7

Preferences over what other people do, even when those other people do not interfere in any direct way with what you do, are sometimes called ______ preferences.

Accepted Answer

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

Question 8

In a society where the income distribution is skewed, and rich people have a very large chunk of the total income in the country, will utilitarians advocate reallocation of resources if the rich get more utility, that is, more value from the amount of the transfer than the poor people do?

Accepted Answer

No, it is important to note that utilita

Question 9

Based on your reading of the text, briefly list some of the objections that exist against standard economic reasoning.

Accepted Answer

Some of the arguments are arguments of e

Question 10

Taking into account the incentive effects of redistribution on the poor, utilitarianism suggests that:

Accepted Answer

A)  giving dollars to poor people is the best way to improve their welfare. 
B)  giving dollars to poor people is not always the best way to improve their welfare. 
C)  poor people tend to be more responsive to incentives. 
D)  poor people tend to be less responsive to incentives. 
A)  giving dollars to poor people is the best way to improve their welfare. 
B)  giving dollars to poor people is not always the best way to improve their welfare. 
C)  poor people tend to be more responsive to incentives. 
D)  poor people tend to be less responsive to incentives.

Question 11

______ is a well-known utilitarian scholar.

Accepted Answer

A)  Lawrence Summers 
B)  Gary Becker 
C)  Peter Singer 
D)  John Rawls 
A)  Lawrence Summers 
B)  Gary Becker 
C)  Peter Singer 
D)  John Rawls

Question 12

People that argue for the legal exchange of kidneys argue that voluntary trade can make both parties better off.

Accepted Answer

A) True 
 B)False

Question 13

Which statement is TRUE?

Accepted Answer

A)  The French government mandates that 40 percent of the movies shown on TV must be French-language movies. 
B)  The French government encourages rock-and-roll music from French bands instead of American and British rock bands. 
C)  In general, the French government tries to support French culture. 
D)  Each of these statements is correct. 
A)  The French government mandates that 40 percent of the movies shown on TV must be French-language movies. 
B)  The French government encourages rock-and-roll music from French bands instead of American and British rock bands. 
C)  In general, the French government tries to support French culture. 
D)  Each of these statements is correct.

Question 14

Some people believe that trade such as the buying and selling of human kidneys is exploitative because:

Accepted Answer

A)  poor people have less information than wealthy individuals. 
B)  wealthy individuals choose to buy kidneys from poor people only because they are willing to sell them for less. 
C)  poor people have little choice but to sell things (such as their own kidneys) which they would really rather keep. 
D)  these types of risky exchanges happen only in poor countries. 
A)  poor people have less information than wealthy individuals. 
B)  wealthy individuals choose to buy kidneys from poor people only because they are willing to sell them for less. 
C)  poor people have little choice but to sell things (such as their own kidneys) which they would really rather keep. 
D)  these types of risky exchanges happen only in poor countries.

Question 15

Normative economics involves describing, explaining, or predicting economic events.

Accepted Answer

A) True 
 B)False

Question 16

Economics tends to put ________ weight on immigrants' preferences compared to citizens, while politics tends to put ________ weight on immigrants' preferences compared to citizens.

Accepted Answer

A)  more; less 
B)  less; more 
C)  equal; less 
D)  equal; more 
A)  more; less 
B)  less; more 
C)  equal; less 
D)  equal; more

Question 17

Preferences over what other people do, even when they don't interfere in any direct way with what anyone else does, are called meddlesome preferences.

Accepted Answer

A) True 
 B)False

Question 18

Respect for people's preferences and choices leads to:

Accepted Answer

A)  income equality. 
B)  support of voluntary trade. 
C)  a utilitarian outcome. 
D)  an ethical outcome. 
A)  income equality. 
B)  support of voluntary trade. 
C)  a utilitarian outcome. 
D)  an ethical outcome.

Question 19

Which of the following statements reflect(s) the ethical views of economists?
I. respect for individual preferences
II. support of voluntary transactions
III. treat people equally

Accepted Answer

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

Question 20

Positive statements in economics:

Accepted Answer

A)  can be verified only through appeals to judgments and values. 
B)  usually are not part of the ethical debates about economic activities. 
C)  provide information for people engaged in political and ethical discussions. 
D)  typically cannot be empirically evaluated. 
A)  can be verified only through appeals to judgments and values. 
B)  usually are not part of the ethical debates about economic activities. 
C)  provide information for people engaged in political and ethical discussions. 
D)  typically cannot be empirically evaluated.

Exam 21: Economics, Ethics, and Public Policy

The notion of fair and equal treatment can:

An unintended consequence of the French government's support for French-language movies is that:

Someone who believes that the sale of kidneys by the poor is exploitative would find which of the following price tags for a kidney most exploitative?

If one person wants a kidney more than the money and the other wants the money more than the kidney, they can be better off by trade.

Commercial fishing in Alaska is generally considered exploitative because of the high degree of risk involved for only one side of the transaction (the fishermen).

Preferences over what other people do, even when those other people do not interfere in any direct way with what you do, are sometimes called ______ preferences.

In a society where the income distribution is skewed, and rich people have a very large chunk of the total income in the country, will utilitarians advocate reallocation of resources if the rich get more utility, that is, more value from the amount of the transfer than the poor people do?

Based on your reading of the text, briefly list some of the objections that exist against standard economic reasoning.

Taking into account the incentive effects of redistribution on the poor, utilitarianism suggests that:

______ is a well-known utilitarian scholar.

People that argue for the legal exchange of kidneys argue that voluntary trade can make both parties better off.

Which statement is TRUE?

Some people believe that trade such as the buying and selling of human kidneys is exploitative because:

Normative economics involves describing, explaining, or predicting economic events.

Economics tends to put ________ weight on immigrants' preferences compared to citizens, while politics tends to put ________ weight on immigrants' preferences compared to citizens.

Preferences over what other people do, even when they don't interfere in any direct way with what anyone else does, are called meddlesome preferences.

Respect for people's preferences and choices leads to:

Which of the following statements reflect(s) the ethical views of economists? I. respect for individual preferences II. support of voluntary transactions III. treat people equally

Positive statements in economics:

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

Economics tends to put weight on immigrants' preferences compared to citizens, while politics tends to put weight on immigrants' preferences compared to citizens.