Question 1

Describe some of the ethical reasons that lead people to disapprove of gains from trade as a valid guideline for evaluating actions.

Accepted Answer

[The best answer is the "Takeaway" from

Question 2

Which is an example of a normative economic statement?

Accepted Answer

A)  Consumer spending is nearly two-thirds of total GDP. 
B)  Increased government spending might lead to higher interest rates. 
C)  The government should increase spending on education. 
D)  Increased education spending could lead to higher test scores. 
A)  Consumer spending is nearly two-thirds of total GDP. 
B)  Increased government spending might lead to higher interest rates. 
C)  The government should increase spending on education. 
D)  Increased education spending could lead to higher test scores.

Question 3

______ is about making recommendations on what economic policy should be.

Accepted Answer

A)  Normative economics 
B)  Real economics 
C)  Nominal economics 
D)  Positive economics 
A)  Normative economics 
B)  Real economics 
C)  Nominal economics 
D)  Positive economics

Question 4

Issues of fairness and morality underlie many arguments about public policy.

Accepted Answer

A) True 
 B)False

Question 5

The question of whether selling kidneys is exploitative boils down to the question of whether:

Accepted Answer

A)  we could save more lives by allowing the sale of kidneys. 
B)  it is wrong to buy things from the poor just because they are poor. 
C)  it is risky to sell kidneys. 
D)  the poor would be better off with or without the additional income. 
A)  we could save more lives by allowing the sale of kidneys. 
B)  it is wrong to buy things from the poor just because they are poor. 
C)  it is risky to sell kidneys. 
D)  the poor would be better off with or without the additional income.

Question 6

Robert Nozick advocated the importance of assessing the distribution of income in a country in order to decide whether an economic system is just or not.

Accepted Answer

A) True 
 B)False

Question 7

One problem to standard economic reasoning is fair and equal treatment.

Accepted Answer

A) True 
 B)False

Question 8

Utilitarians are not concerned that transferring wealth to the poor reduces an economy's output.

Accepted Answer

A) True 
 B)False

Question 9

Which statement is TRUE?

Accepted Answer

A)  New York City buses do not accommodate the disabled. 
B)  Taxpayers would have lost money if New York City had paid disabled people to use taxis rather than retrofitting city buses for wheelchair ramps. 
C)  New York City buses are capable of accepting passengers in wheelchairs. 
D)  New York City would have saved money if buses were used to transport the disabled rather than taxicabs. 
A)  New York City buses do not accommodate the disabled. 
B)  Taxpayers would have lost money if New York City had paid disabled people to use taxis rather than retrofitting city buses for wheelchair ramps. 
C)  New York City buses are capable of accepting passengers in wheelchairs. 
D)  New York City would have saved money if buses were used to transport the disabled rather than taxicabs.

Question 10

Which is NOT considered an ethical view held by most economists?

Accepted Answer

A)  respect for individual choice and preference 
B)  some voluntary trades are exploitative 
C)  support for voluntary trade 
D)  equality of treatment 
A)  respect for individual choice and preference 
B)  some voluntary trades are exploitative 
C)  support for voluntary trade 
D)  equality of treatment

Question 11

What principle was the basis for equipping buses in New York City for wheelchair service?

Accepted Answer

A)  efficiency 
B)  paternalism 
C)  poverty reduction 
D)  fair and equal treatment 
A)  efficiency 
B)  paternalism 
C)  poverty reduction 
D)  fair and equal treatment

Question 12

When it comes to issues of immigration, economists will consider:

Accepted Answer

A)  only the costs of immigration, such as increased taxation and use of public services. 
B)  only the benefits to Americans from increased immigration, such as more entrepreneurial activity and a larger labor force. 
C)  the costs and benefits of immigration, not only to Americans, but to the immigrants themselves as well as their families. 
D)  the costs and benefits of immigration, but only to Americans. 
A)  only the costs of immigration, such as increased taxation and use of public services. 
B)  only the benefits to Americans from increased immigration, such as more entrepreneurial activity and a larger labor force. 
C)  the costs and benefits of immigration, not only to Americans, but to the immigrants themselves as well as their families. 
D)  the costs and benefits of immigration, but only to Americans.

Question 13

Which statement is an example of normative economics?

Accepted Answer

A)  Tariffs increase deadweight loss. 
B)  Trade increases economic efficiency. 
C)  Tariffs should be lower. 
D)  Wealth-maximizing countries focus on producing their comparative advantage. 
A)  Tariffs increase deadweight loss. 
B)  Trade increases economic efficiency. 
C)  Tariffs should be lower. 
D)  Wealth-maximizing countries focus on producing their comparative advantage.

Question 14

The French cultural policy once required all movies on television and all music on rock-and-roll radio to be "French."

Accepted Answer

A) True 
 B)False

Question 15

What is the maximin principle?

Accepted Answer

A)  The government should minimize benefits that the maximum income earners receive from society, allowing others to become better-off. 
B)  The government should maximize benefits that the minimum income earners receive from society, making them as well-off as possible. 
C)  The least well-off people in society should be made as well-off as anyone else in society. 
D)  The most well-off people in society should have a maximum level of wealth. 
A)  The government should minimize benefits that the maximum income earners receive from society, allowing others to become better-off. 
B)  The government should maximize benefits that the minimum income earners receive from society, making them as well-off as possible. 
C)  The least well-off people in society should be made as well-off as anyone else in society. 
D)  The most well-off people in society should have a maximum level of wealth.

Question 16

To what extent was Robin Hood a utilitarian?

Accepted Answer

Utilitarians advocate the reallocation o

Question 17

Table: Melinda and Lucinda
 
Refer to the table. This society consists of two people: Melinda and Lucinda. Melinda earns $80,000 and Lucinda earns $20,000. To maximize society's total utility (the sum of Melinda's and Lucinda's utility), the government should take ______ from Melinda and give it to Lucinda.

Accepted Answer

A)  $30,000 
B)  $10,000 
C)  $20,000 
D)  $40,000 
A)  $30,000 
B)  $10,000 
C)  $20,000 
D)  $40,000

Question 18

Intuitions about fairness, equitable treatment, distribution, and other matters often clash with:

Accepted Answer

A)  policy making. 
B)  increasing the gains from trade. 
C)  ethical analysis. 
D)  eliminating gains from trade. 
A)  policy making. 
B)  increasing the gains from trade. 
C)  ethical analysis. 
D)  eliminating gains from trade.

Question 19

Normative economics is about:

Accepted Answer

A)  verifying and confirming economic policy. 
B)  describing, explaining, or predicting economic events. 
C)  prescribing and making a claim on the economy. 
D)  making recommendations about what economic policy should be. 
A)  verifying and confirming economic policy. 
B)  describing, explaining, or predicting economic events. 
C)  prescribing and making a claim on the economy. 
D)  making recommendations about what economic policy should be.

Question 20

Ethics has little to do with economics.

Accepted Answer

A) True 
 B)False

Exam 21: Economics, Ethics, and Public Policy

Describe some of the ethical reasons that lead people to disapprove of gains from trade as a valid guideline for evaluating actions.

Which is an example of a normative economic statement?

______ is about making recommendations on what economic policy should be.

Issues of fairness and morality underlie many arguments about public policy.

The question of whether selling kidneys is exploitative boils down to the question of whether:

Robert Nozick advocated the importance of assessing the distribution of income in a country in order to decide whether an economic system is just or not.

One problem to standard economic reasoning is fair and equal treatment.

Utilitarians are not concerned that transferring wealth to the poor reduces an economy's output.

Which statement is TRUE?

Which is NOT considered an ethical view held by most economists?

What principle was the basis for equipping buses in New York City for wheelchair service?

When it comes to issues of immigration, economists will consider:

Which statement is an example of normative economics?

The French cultural policy once required all movies on television and all music on rock-and-roll radio to be "French."

What is the maximin principle?

To what extent was Robin Hood a utilitarian?

Intuitions about fairness, equitable treatment, distribution, and other matters often clash with:

Normative economics is about:

Ethics has little to do with 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