Question 1

When he was chief economist at the World Bank, Larry Summers argued that:

Accepted Answer

A)  multinational companies should be restricted from locating in less-developed countries because it creates less employment in developed countries. 
B)  rich countries should send their pollution-creating industries to poor countries because the costs of bad health are lower for poor people. 
C)  there are more men working in science because women are discriminated against. 
D)  health insurance mandates do not change the position of either the demand or supply curve of labor. 
A)  multinational companies should be restricted from locating in less-developed countries because it creates less employment in developed countries. 
B)  rich countries should send their pollution-creating industries to poor countries because the costs of bad health are lower for poor people. 
C)  there are more men working in science because women are discriminated against. 
D)  health insurance mandates do not change the position of either the demand or supply curve of labor.

Question 2

Economists find that immigration, in general,:

Accepted Answer

A)  is a major economic issue in the United States. 
B)  has no winners or losers. 
C)  is not a major economic issue in the United States. 
D)  is not an economic issue in the United States. 
A)  is a major economic issue in the United States. 
B)  has no winners or losers. 
C)  is not a major economic issue in the United States. 
D)  is not an economic issue in the United States.

Question 3

PETA opposes the purchase of purebred dogs as pets. This is an example of:

Accepted Answer

A)  meddlesome preferences. 
B)  exploitative preferences. 
C)  externality preferences. 
D)  marginal preferences. 
A)  meddlesome preferences. 
B)  exploitative preferences. 
C)  externality preferences. 
D)  marginal preferences.

Question 4

Economics can safely ignore questions of fairness when examining trade-offs.

Accepted Answer

A) True 
 B)False

Question 5

The goal of utilitarianism is to:

Accepted Answer

A)  ensure that everyone is equal. 
B)  maximize the happiness of the poor. 
C)  create the greatest happiness for society. 
D)  prevent recessions, high unemployment, and inflation. 
A)  ensure that everyone is equal. 
B)  maximize the happiness of the poor. 
C)  create the greatest happiness for society. 
D)  prevent recessions, high unemployment, and inflation.

Question 6

Utilitarians are likely to suggest that taking a dollar from a rich person and giving it to a poor person:

Accepted Answer

A)  increases society's total well-being because the loss in utility to the rich person is more than offset by the gain in utility to the poor person. 
B)  decreases society's total well-being because the loss in utility to the rich person is more than offset by the gain in utility to the poor person. 
C)  decreases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to the poor person. 
D)  increases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to the poor person. 
A)  increases society's total well-being because the loss in utility to the rich person is more than offset by the gain in utility to the poor person. 
B)  decreases society's total well-being because the loss in utility to the rich person is more than offset by the gain in utility to the poor person. 
C)  decreases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to the poor person. 
D)  increases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to the poor person.

Question 7

Utilitarians do not recognize the incentive-based cost of redistribution.

Accepted Answer

A) True 
 B)False

Question 8

Economics does not inform us about which value judgments are best.

Accepted Answer

A) True 
 B)False

Question 9

Most economists support:

Accepted Answer

A)  uncompensated kidney trade. 
B)  illegal kidney trade. 
C)  no kidney trade. 
D)  legal kidney trade. 
A)  uncompensated kidney trade. 
B)  illegal kidney trade. 
C)  no kidney trade. 
D)  legal kidney trade.

Question 10

Economists typically view government-supported programs such as arts and movies as:

Accepted Answer

A)  efficient; these are public goods that would be underproduced in the market. 
B)  inefficient; if people valued these things they should be willing to pay for them. 
C)  efficient; the cost to the government to produce these goods is less than the private sector because of economies of scale. 
D)  inefficient; government provision of these goods is not fair nor equal. 
A)  efficient; these are public goods that would be underproduced in the market. 
B)  inefficient; if people valued these things they should be willing to pay for them. 
C)  efficient; the cost to the government to produce these goods is less than the private sector because of economies of scale. 
D)  inefficient; government provision of these goods is not fair nor equal.

Question 11

John Rawls's A Theory of Justice, published in 1971, argued that ________ is/are key(s) for evaluating social policy.

Accepted Answer

A)  the design of the tax system 
B)  economic welfare 
C)  the interaction of suppliers and demanders 
D)  questions of income and wealth distribution 
A)  the design of the tax system 
B)  economic welfare 
C)  the interaction of suppliers and demanders 
D)  questions of income and wealth distribution

Question 12

Explain why economists and politicians tend to evaluate a public policy like trade or immigration differently?

Accepted Answer

When economists evaluate a public policy

Question 13

The concept of utility could refer to "happiness" or "satisfaction."

Accepted Answer

A) True 
 B)False

Question 14

Which statement about the maximin principle is correct?

Accepted Answer

A)  Doing well by the better-off group is more important than improving the lot of worst-off groups. 
B)  Doing well by the worst-off group is more important than improving the lot of any other group. 
C)  Doing well by both the better-off group and worst-off group is equally important. 
D)  Doing well by neither the better-off group nor worst-off group is important. 
A)  Doing well by the better-off group is more important than improving the lot of worst-off groups. 
B)  Doing well by the worst-off group is more important than improving the lot of any other group. 
C)  Doing well by both the better-off group and worst-off group is equally important. 
D)  Doing well by neither the better-off group nor worst-off group is important.

Question 15

Who argued that income inequality is not a problem as long as income was justly acquired?

Accepted Answer

A)  Peter Singer 
B)  Robert Nozick 
C)  John Craine 
D)  John Rawls 
A)  Peter Singer 
B)  Robert Nozick 
C)  John Craine 
D)  John Rawls

Question 16

A city-owned hospital sends morbidly obese patients to the zoo to get an MRI. The city, however, could purchase a newer model MRI machine (at a cost of $2.5 million) that is capable of accommodating morbidly obese patients. This example highlights the problem of:

Accepted Answer

A)  exploitation. 
B)  meddlesome preferences. 
C)  fair and equal treatment. 
D)  the distribution of wealth. 
A)  exploitation. 
B)  meddlesome preferences. 
C)  fair and equal treatment. 
D)  the distribution of wealth.

Question 17

Which is an example of a positive economic statement?

Accepted Answer

A)  A country as rich as the United States should not have any poverty. 
B)  Minimum wage laws should be increased to counteract the power of monopoly businesses. 
C)  As government spending increases, economic growth decreases. 
D)  A market of human organs is not necessary and would lead to the commoditization of organs. 
A)  A country as rich as the United States should not have any poverty. 
B)  Minimum wage laws should be increased to counteract the power of monopoly businesses. 
C)  As government spending increases, economic growth decreases. 
D)  A market of human organs is not necessary and would lead to the commoditization of organs.

Question 18

Which of the following hold to a meddlesome preference?

Accepted Answer

A)  people who are against interracial dating 
B)  people who are against sodomy 
C)  people who are against certain religious practices 
D)  All of the answers are correct. 
A)  people who are against interracial dating 
B)  people who are against sodomy 
C)  people who are against certain religious practices 
D)  All of the answers are correct.

Question 19

Gary Becker, a Nobel Prize-winning economist, argued for what?

Accepted Answer

A)  keeping the price of kidneys at $0 
B)  encouraging the importation of kidneys from less-developed countries 
C)  importing pollutants from less-developed countries 
D)  exporting pollutants to less-developed countries 
A)  keeping the price of kidneys at $0 
B)  encouraging the importation of kidneys from less-developed countries 
C)  importing pollutants from less-developed countries 
D)  exporting pollutants to less-developed countries

Question 20

The maximin principle is about:

Accepted Answer

A)  minimizing the income spread between the middle class and the rich. 
B)  maximizing the benefits to the most disadvantaged group in society. 
C)  maximizing the income of the most productive group in society to encourage spillover benefits to the least advantaged group. 
D)  equalizing income across society. 
A)  minimizing the income spread between the middle class and the rich. 
B)  maximizing the benefits to the most disadvantaged group in society. 
C)  maximizing the income of the most productive group in society to encourage spillover benefits to the least advantaged group. 
D)  equalizing income across society.

Exam 21: Economics, Ethics, and Public Policy

When he was chief economist at the World Bank, Larry Summers argued that:

Economists find that immigration, in general,:

PETA opposes the purchase of purebred dogs as pets. This is an example of:

Economics can safely ignore questions of fairness when examining trade-offs.

The goal of utilitarianism is to:

Utilitarians are likely to suggest that taking a dollar from a rich person and giving it to a poor person:

Utilitarians do not recognize the incentive-based cost of redistribution.

Economics does not inform us about which value judgments are best.

Most economists support:

Economists typically view government-supported programs such as arts and movies as:

John Rawls's A Theory of Justice, published in 1971, argued that ________ is/are key(s) for evaluating social policy.

Explain why economists and politicians tend to evaluate a public policy like trade or immigration differently?

The concept of utility could refer to "happiness" or "satisfaction."

Which statement about the maximin principle is correct?

Who argued that income inequality is not a problem as long as income was justly acquired?

A city-owned hospital sends morbidly obese patients to the zoo to get an MRI. The city, however, could purchase a newer model MRI machine (at a cost of $2.5 million) that is capable of accommodating morbidly obese patients. This example highlights the problem of:

Which is an example of a positive economic statement?

Which of the following hold to a meddlesome preference?

Gary Becker, a Nobel Prize-winning economist, argued for what?

The maximin principle is about:

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