Question 1

Discuss the problems of implementing utilitarianism?

Accepted Answer

Transferring income from the rich to the

Question 2

Consider these two theories of justice. Who is/are the proponents of these theories?
I. The justice of wealth distribution is determined by the income status of the least well-off in society.
II. The justice of wealth distribution is determined by whether the acquisition of wealth was just.

Accepted Answer

A)  I is Nozick; II is Rawls. 
B)  I is Rawls; II is Nozick. 
C)  Both are theories held by Nozick. 
D)  Both are theories held by Rawls. 
A)  I is Nozick; II is Rawls. 
B)  I is Rawls; II is Nozick. 
C)  Both are theories held by Nozick. 
D)  Both are theories held by Rawls.

Question 3

You write a wonderful novel that becomes very popular, and it will profitably retail for $6.50. Everybody buys the book, even some of the poor, since the book is reasonably priced. Ultimately, everyone is more satisfied because they now have the enjoyment of the book rather than their cash, but of course everyone (even the poorest person among your purchasers) gave you $6.50 for their copy of the book. All this money has now been transferred to you since you are the author of the book, and you are now millions richer. Assess the justness of this new income allocation from the following points of view:
a. utilitarian
b. Rawlsian
c. Nozickian

Accepted Answer

a. From a utilitarian point of view, the

Question 4

It is often difficult to resolve meddlesome preferences with other values that are considered important such as:

Accepted Answer

A)  liberty. 
B)  rights. 
C)  religious freedom. 
D)  All of the answers are correct. 
A)  liberty. 
B)  rights. 
C)  religious freedom. 
D)  All of the answers are correct.

Question 5

The practical limit of income redistribution is incentives that affect how much the wealthy earn.

Accepted Answer

A) True 
 B)False

Question 6

Robert Nozick laid out a(n) ______ theory of justice.

Accepted Answer

A)  utilitarian 
B)  libertarian 
C)  contrarian 
D)  Rawlsian 
A)  utilitarian 
B)  libertarian 
C)  contrarian 
D)  Rawlsian

Question 7

Which is an example of meddlesome preferences?

Accepted Answer

A)  College students volunteer time building homes for the poor. 
B)  People lobby politicians for laws restricting religious proselytizing. 
C)  A rich person donates money to a homeless shelter. 
D)  A poor individual believes the rich should pay more in taxes. 
A)  College students volunteer time building homes for the poor. 
B)  People lobby politicians for laws restricting religious proselytizing. 
C)  A rich person donates money to a homeless shelter. 
D)  A poor individual believes the rich should pay more in taxes.

Question 8

Robert Nozick would most likely believe that kidney trade should be:

Accepted Answer

A)  legal. 
B)  illegal. 
C)  legal, but subject to heavy regulation. 
D)  uncompensated. 
A)  legal. 
B)  illegal. 
C)  legal, but subject to heavy regulation. 
D)  uncompensated.

Question 9

Which statement is NOT a limitation of utilitarianism?

Accepted Answer

A)  People have differing preferences. 
B)  Happiness is difficult to measure. 
C)  People respond differently to incentives. 
D)  Utilitarianism is a just acquisition of goods. 
A)  People have differing preferences. 
B)  Happiness is difficult to measure. 
C)  People respond differently to incentives. 
D)  Utilitarianism is a just acquisition of goods.

Question 10

Table: Society A, B, C, D 2
 
Refer to the table. Using the maximin principle, identify the societies that rank the highest and the lowest.

Accepted Answer

Society D ranks lowest since t

Question 11

Which is NOT a so-called problem of economic reasoning?

Accepted Answer

A)  meddlesome preferences 
B)  fair and equal treatment 
C)  exploitation 
D)  prices as information signals 
A)  meddlesome preferences 
B)  fair and equal treatment 
C)  exploitation 
D)  prices as information signals

Question 12

One objection to standard economic reasoning is the problem of exploration.

Accepted Answer

A) True 
 B)False

Question 13

Suppose a U.S. presidential candidate announced that he or she would put equal weight on the preferences of immigrants and U.S. citizens. This candidate would likely:

Accepted Answer

A)  make immigration a hot issue in his or her campaign. 
B)  win the election. 
C)  put less weight on the immigrants who send their earnings home. 
D)  lose the election. 
A)  make immigration a hot issue in his or her campaign. 
B)  win the election. 
C)  put less weight on the immigrants who send their earnings home. 
D)  lose the election.

Question 14

John Rawls's maximin principle states that justice requires:

Accepted Answer

A)  maximizing the benefits to society's most underprivileged group. 
B)  maximizing wealth while minimizing costs. 
C)  maximizing total wealth in society. 
D)  equalizing wealth across all individuals. 
A)  maximizing the benefits to society's most underprivileged group. 
B)  maximizing wealth while minimizing costs. 
C)  maximizing total wealth in society. 
D)  equalizing wealth across all individuals.

Question 15

The problems of standard economic reasoning that need to be examined include all of the following EXCEPT:

Accepted Answer

A)  the problem of exploitation. 
B)  meddlesome preferences. 
C)  unfair and unequal treatment. 
D)  cultural goods and paternalism. 
A)  the problem of exploitation. 
B)  meddlesome preferences. 
C)  unfair and unequal treatment. 
D)  cultural goods and paternalism.

Question 16

Which distributional theory is most consistent with the principles of individual liberty?

Accepted Answer

Robert Nozick's entitlement theory is mo

Question 17

Robert Nozick's entitlement theory is a pro-free-trade theory.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Explain how economic reasoning may fail to address the issue of fair and equal treatment.

Accepted Answer

Markets are very fair in one aspect. The

Question 20

Equal treatment is always compatible with economic efficiency.

Accepted Answer

A) True 
 B)False

Exam 21: Economics, Ethics, and Public Policy

Discuss the problems of implementing utilitarianism?

Consider these two theories of justice. Who is/are the proponents of these theories? I. The justice of wealth distribution is determined by the income status of the least well-off in society. II. The justice of wealth distribution is determined by whether the acquisition of wealth was just.

It is often difficult to resolve meddlesome preferences with other values that are considered important such as:

The practical limit of income redistribution is incentives that affect how much the wealthy earn.

Robert Nozick laid out a(n) ______ theory of justice.

Which is an example of meddlesome preferences?

Robert Nozick would most likely believe that kidney trade should be:

Which statement is NOT a limitation of utilitarianism?

Table: Society A, B, C, D 2 Refer to the table. Using the maximin principle, identify the societies that rank the highest and the lowest.

Which is NOT a so-called problem of economic reasoning?

One objection to standard economic reasoning is the problem of exploration.

Suppose a U.S. presidential candidate announced that he or she would put equal weight on the preferences of immigrants and U.S. citizens. This candidate would likely:

John Rawls's maximin principle states that justice requires:

The problems of standard economic reasoning that need to be examined include all of the following EXCEPT:

Which distributional theory is most consistent with the principles of individual liberty?

Robert Nozick's entitlement theory is a pro-free-trade theory.

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

Explain how economic reasoning may fail to address the issue of fair and equal treatment.

Equal treatment is always compatible with economic efficiency.

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