Exam 21: Economics, Ethics, and Public Policy

According to the July 24, 2011, New York Times, wealthy families are using private planes to send their kids to summer camp instead of enduring the "arduous logistics" of using a car to get to upstate New York or rural Maine. Blogger Matthew Yglesias commented on the story: "This, needless to say, is why progressive taxation is a good idea. Very rich people experience a sharply declining marginal utility of money. If this kind of high-end consumption was more heavily taxed with the proceeds used to finance the consumption of the less fortunate, overall well-being could be easily enhanced." Based on this information, which philosophy does Yglesias MOST likely subscribe to?

Income inequality is not a problem if it results from voluntary transactions in the marketplace, according to Nozick's entitlement theory.

Which assertion about the principle of fair and equal treatment is correct?

Which statement is an example of positive economics?

Larry Summers argued that it makes economic sense for:

In New York City, public buses 'kneel down' until wheelchairs may board.

Utilitarians favor redistribution schemes that maximize total utility in society.

In a now infamous leaked memo, Larry Summers argued for what?

Which of the following might limit the amount of wealth a utilitarian would redistribute from rich to poor?

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 type of problem:

Nozick's entitlement theory is also known as:

Many economists argue that there are ethical ideas behind economic reasoning because:

Positive economics is about:

It is difficult to see the dividing line that separates exploitation from exchange.

The pragmatic criticism argues that the French government's subsidy schemes tend to be:

Which moral philosophy actively encourages income inequality if there are wealthy people with an increasing marginal utility for wealth?

Nozick argued that the distribution of income is:

A cosmopolitan Rawlsian thinker would likely support:

Which is a positive economic statement?

The real question behind the exploitation argument is: