Question 1

The maximin principle, utilitarianism, and entitlement theory of justice are concerned with issues of:

Accepted Answer

A)  income distribution. 
B)  money supply and inflation. 
C)  consumer sovereignty. 
D)  economic forecasting. 
A)  income distribution. 
B)  money supply and inflation. 
C)  consumer sovereignty. 
D)  economic forecasting.

Question 2

Foreign aid is:

Accepted Answer

A)  grants and gifts of money and goods and services from the United States to other countries. 
B)  imports of goods and services from other countries into the United States. 
C)  the largest part of U.S. GDP. 
D)  All of the answers are correct. 
A)  grants and gifts of money and goods and services from the United States to other countries. 
B)  imports of goods and services from other countries into the United States. 
C)  the largest part of U.S. GDP. 
D)  All of the answers are correct.

Question 3

The problem with kidney sales and exporting pollution to poor countries is not trade, per se, but the:

Accepted Answer

A)  demand and supply making the trade happen. 
B)  poverty and inequality making the trade happen. 
C)  surplus and shortage making the trade happen. 
D)  market making the trade happen. 
A)  demand and supply making the trade happen. 
B)  poverty and inequality making the trade happen. 
C)  surplus and shortage making the trade happen. 
D)  market making the trade happen.

Question 4

One of the biggest arguments against legalizing organ trade is that the people selling their organs for money would be exploited. Wikipedia claims that the "average reported price around the world that a donor receives for a kidney is $5,000, while the average price paid on the black market to receive the kidney is $150,000." Which group (if any) would you say is more exploited as a result of organ trade-those who sell kidneys on the legal or illegal market? Explain. Who is better off, and who is worse off as a result of kidney trading?

Accepted Answer

If all sellers of kidneys have good info

Question 5

A poor person who sells an organ is always being exploited.

Accepted Answer

A) True 
 B)False

Question 6

The notion of fair and equal treatment is always consistent with the value of trade and efficiency.

Accepted Answer

A) True 
 B)False

Question 7

Which transaction would NOT satisfy Nozick's entitlement theory of justice?

Accepted Answer

A)  poor people selling their organs to wealthy people 
B)  taxing commuters to pay for the roads they use 
C)  the rich elderly leaving a fortune to their children in their will 
D)  McDonald's selling unhealthy food to the general populace 
A)  poor people selling their organs to wealthy people 
B)  taxing commuters to pay for the roads they use 
C)  the rich elderly leaving a fortune to their children in their will 
D)  McDonald's selling unhealthy food to the general populace

Question 8

Robert Nozick's direct criticism of the importance of income equality is that:

Accepted Answer

A)  peaceful trade should not be condemned even when it leads to large differences in wealth. 
B)  trade performed on a cumulative basis would result in equal outcomes and opportunities for people. 
C)  equality results only from freely chosen market transactions, devoid of coercive force or fraud. 
D)  All of the answers are correct. 
A)  peaceful trade should not be condemned even when it leads to large differences in wealth. 
B)  trade performed on a cumulative basis would result in equal outcomes and opportunities for people. 
C)  equality results only from freely chosen market transactions, devoid of coercive force or fraud. 
D)  All of the answers are correct.

Question 9

Larry Summers was chief economist of:

Accepted Answer

A)  Google. 
B)  the IMF. 
C)  the World Bank. 
D)  the CBO. 
A)  Google. 
B)  the IMF. 
C)  the World Bank. 
D)  the CBO.

Question 10

Rawls relies on the economic idea of trade-offs to formulate the maximin principle.

Accepted Answer

A) True 
 B)False

Question 11

Entitlement theory argues that:

Accepted Answer

A)  capitalistic systems based on voluntary trade reduce income inequality. 
B)  market trades between consenting adults lead to income inequality. 
C)  market trades between consenting adults lead to an equal distribution of income. 
D)  the rich should compensate the poor. 
A)  capitalistic systems based on voluntary trade reduce income inequality. 
B)  market trades between consenting adults lead to income inequality. 
C)  market trades between consenting adults lead to an equal distribution of income. 
D)  the rich should compensate the poor.

Question 12

Gary Becker said that we should never legalize the trade on human organs.

Accepted Answer

A) True 
 B)False

Question 13

Tom is in need of a kidney to stay alive, and he is willing and able to pay up to $15,000 for a new kidney. David has two well-functioning kidneys (that are also compatible with Tom). David, aware of the risks of surgery, would be willing to sell one of his kidneys to Tom for $10,000. If kidney trade were legal, would this trade take place? What price would a kidney sell for in this scenario?
Plenty of people are still against organ trade even if it generates mutual gains from trade. Explain why this is the case.

Accepted Answer

If kidney trade were legal, Tom and Davi

Question 14

The view that has proven especially influential on normative policy judgments is:

Accepted Answer

A)  John Rawls's maximin principle. 
B)  utilitarianism. 
C)  Robert Nozick's entitlement theory of justice. 
D)  All three of these views have been very influential on normative policies in the past. 
A)  John Rawls's maximin principle. 
B)  utilitarianism. 
C)  Robert Nozick's entitlement theory of justice. 
D)  All three of these views have been very influential on normative policies in the past.

Question 15

Meddlesome preferences are ________ with ________.

Accepted Answer

A)  consistent; liberty, rights, and religious freedom 
B)  inconsistent; liberty, rights, and religious freedom 
C)  consistent; more fundamental rights like the pursuit of life, liberty, and happiness 
D)  harmless; dictatorships 
A)  consistent; liberty, rights, and religious freedom 
B)  inconsistent; liberty, rights, and religious freedom 
C)  consistent; more fundamental rights like the pursuit of life, liberty, and happiness 
D)  harmless; dictatorships

Question 16

Consider the market for human kidneys. Using supply and demand, graphically illustrate how the price of $0 is affecting the legal market for kidneys. Assume that a small number of kidneys are donated for free each year.

Accepted Answer

Note that in the following dia

Question 17

Economic theory assumes that:

Accepted Answer

A)  a dollar is worth more to a rich man than a poor man. 
B)  a dollar is worth more to a poor man than a rich man. 
C)  the poor are more deserving of resources than the rich, even though they value a dollar less. 
D)  there is no way to measure whether the rich or poor will get more utility from an additional dollar of income. 
A)  a dollar is worth more to a rich man than a poor man. 
B)  a dollar is worth more to a poor man than a rich man. 
C)  the poor are more deserving of resources than the rich, even though they value a dollar less. 
D)  there is no way to measure whether the rich or poor will get more utility from an additional dollar of income.

Question 18

Under utilitarianism, we try to implement the outcome that:

Accepted Answer

A)  makes equal allocation of utility to society. 
B)  raises utility of the most productive workers in the society. 
C)  increases utility to lower-income people in the society. 
D)  brings the greatest sum of utility to society. 
A)  makes equal allocation of utility to society. 
B)  raises utility of the most productive workers in the society. 
C)  increases utility to lower-income people in the society. 
D)  brings the greatest sum of utility to society.

Question 19

What kind of positive pro-immigration statements would an economist make? (List at least two.)

Accepted Answer

Immigrants contribute to economic growth

Question 20

Not everyone approves of the core idea in economics called "gains from trade" mainly for:

Accepted Answer

A)  pragmatic reasons. 
B)  ethical reasons. 
C)  political reasons. 
D)  illogical reasons. 
A)  pragmatic reasons. 
B)  ethical reasons. 
C)  political reasons. 
D)  illogical reasons.

Exam 21: Economics, Ethics, and Public Policy

The maximin principle, utilitarianism, and entitlement theory of justice are concerned with issues of:

Foreign aid is:

The problem with kidney sales and exporting pollution to poor countries is not trade, per se, but the:

A poor person who sells an organ is always being exploited.

The notion of fair and equal treatment is always consistent with the value of trade and efficiency.

Which transaction would NOT satisfy Nozick's entitlement theory of justice?

Robert Nozick's direct criticism of the importance of income equality is that:

Larry Summers was chief economist of:

Rawls relies on the economic idea of trade-offs to formulate the maximin principle.

Entitlement theory argues that:

Gary Becker said that we should never legalize the trade on human organs.

The view that has proven especially influential on normative policy judgments is:

Meddlesome preferences are ________ with ________.

Consider the market for human kidneys. Using supply and demand, graphically illustrate how the price of $0 is affecting the legal market for kidneys. Assume that a small number of kidneys are donated for free each year.

Economic theory assumes that:

Under utilitarianism, we try to implement the outcome that:

What kind of positive pro-immigration statements would an economist make? (List at least two.)

Not everyone approves of the core idea in economics called "gains from trade" mainly for:

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

Meddlesome preferences are with .