Question 1

Trade-offs often include:

Accepted Answer

A)  only monetary costs and benefits. 
B)  only one side of the trade. 
C)  ethical tensions that may result from a decision. 
D)  only the opportunity cost of the richer party. 
A)  only monetary costs and benefits. 
B)  only one side of the trade. 
C)  ethical tensions that may result from a decision. 
D)  only the opportunity cost of the richer party.

Question 2

The amount of money the American government spends annually on foreign aid is:

Accepted Answer

A)  significant. 
B)  over 3% of the federal budget. 
C)  under 1% of the federal budget. 
D)  impossible to calculate. 
A)  significant. 
B)  over 3% of the federal budget. 
C)  under 1% of the federal budget. 
D)  impossible to calculate.

Question 3

Positive economics involves making recommendations for what economic policy should be.

Accepted Answer

A) True 
 B)False

Question 4

Those that argue that allowing kidney sales is not exploiting poor people argue that:
I. poor people can always say "no" if they value their kidney more than the money offered.
II. only low prices are exploitive.
III. voluntary trade can make both parties better off.

Accepted Answer

A)  I only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III 
A)  I only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III

Question 5

Economics is an ethical subject in the sense that:
I. economics is a normative science.
II. the market produces goods and services based on what people want, thus respecting choice and preferences.
III. the market treats all demands equally no matter who they stem from.

Accepted Answer

A)  I only 
B)  II only 
C)  II and III only 
D)  I, II, and III 
A)  I only 
B)  II only 
C)  II and III only 
D)  I, II, and III

Question 6

Which of the following statements is TRUE?
I. A moral argument against government support for the arts is that people should not be forced to spend their money on things they would not voluntarily choose.
II. When artists receive government support, their incentives might change from trying to satisfy consumers to trying to satisfy government bureaucrats.
III. The American government uses cultural considerations to exempt certain groups from taxation.

Accepted Answer

A)  I, II, and III 
B)  I only 
C)  II only 
D)  I and III only 
A)  I, II, and III 
B)  I only 
C)  II only 
D)  I and III only

Question 7

Positive economics explains economic events without making judgments.

Accepted Answer

A) True 
 B)False

Question 8

Which statement is likely a suggestion of the utilitarian?

Accepted Answer

A)  Some amount of money should be redistributed from less productive people to more productive people. 
B)  Some amount of money should be redistributed from more productive people to less productive people. 
C)  Some amount of money should be redistributed from poor people to rich people. 
D)  Some amount of money should be redistributed from rich people toward poor people. 
A)  Some amount of money should be redistributed from less productive people to more productive people. 
B)  Some amount of money should be redistributed from more productive people to less productive people. 
C)  Some amount of money should be redistributed from poor people to rich people. 
D)  Some amount of money should be redistributed from rich people toward poor people.

Question 9

Which principle would most likely be favored by J. K. Rowling, the author of the Harry Potter book series and one of the richest persons in the world?

Accepted Answer

A)  John Rawls's maximin principle 
B)  utilitarianism 
C)  Robert Nozick's entitlement theory of justice 
D)  efficiency theory 
A)  John Rawls's maximin principle 
B)  utilitarianism 
C)  Robert Nozick's entitlement theory of justice 
D)  efficiency theory

Question 10

The National Horse Protection League does not want anyone eating horses, especially foreigners.

Accepted Answer

A) True 
 B)False

Question 11

It's often difficult to resolve meddlesome preferences with other values that are considered important.

Accepted Answer

A) True 
 B)False

Question 12

Economics is an ethical subject in the sense that:

Accepted Answer

A)  the market only supports the production of goods that are considered ethically valuable. 
B)  the market only produces goods that lead to a utilitarian outcome. 
C)  government actions cause market outcomes to become ethical. 
D)  the market treats all demands equally, regardless of whom the demand stems from. 
A)  the market only supports the production of goods that are considered ethically valuable. 
B)  the market only produces goods that lead to a utilitarian outcome. 
C)  government actions cause market outcomes to become ethical. 
D)  the market treats all demands equally, regardless of whom the demand stems from.

Question 13

Why are remittances like an "import" industry to Mexico?

Accepted Answer

A)  The Mexicans who live in the United States export goods and services to Mexico, and these goods and services become Mexico's imports. 
B)  The United States' largest trading partner is Mexico. 
C)  Mexican workers from outside Mexico send money back to all parts of Mexico, and this becomes the largest inflow of capital into Mexico. 
D)  The United States exports the largest number of goods and services to Mexico. 
A)  The Mexicans who live in the United States export goods and services to Mexico, and these goods and services become Mexico's imports. 
B)  The United States' largest trading partner is Mexico. 
C)  Mexican workers from outside Mexico send money back to all parts of Mexico, and this becomes the largest inflow of capital into Mexico. 
D)  The United States exports the largest number of goods and services to Mexico.

Question 14

Utilitarians advocate redistributing income from rich people to poor people only up to the point that:

Accepted Answer

A)  the income distribution is equal. 
B)  the marginal cost is greater than the redistribution. 
C)  the marginal change in utility created from the redistribution is no longer positive. 
D)  the basic subsistence needs of all the poor have been met. 
A)  the income distribution is equal. 
B)  the marginal cost is greater than the redistribution. 
C)  the marginal change in utility created from the redistribution is no longer positive. 
D)  the basic subsistence needs of all the poor have been met.

Question 15

The difference between positive and normative economics is that:

Accepted Answer

A)  positive economics is what you are learning in school whereas normative economics is what you will learn in the real world. 
B)  normative economics is based on proven fact whereas positive economics is based on what should be. 
C)  positive economics describes, explains, and predicts economic events whereas normative economics recommends what economic policies should look like. 
D)  economists always use positive economics whereas politicians always use normative economics. 
A)  positive economics is what you are learning in school whereas normative economics is what you will learn in the real world. 
B)  normative economics is based on proven fact whereas positive economics is based on what should be. 
C)  positive economics describes, explains, and predicts economic events whereas normative economics recommends what economic policies should look like. 
D)  economists always use positive economics whereas politicians always use normative economics.

Question 16

One of the objections to standard economic reasoning is the problem of _____.

Accepted Answer

A)  exploitation 
B)  exploration 
C)  explanation 
D)  expiration 
A)  exploitation 
B)  exploration 
C)  explanation 
D)  expiration

Question 17

Gary Becker supports:

Accepted Answer

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

Question 18

Why would a poor country accept pollution from a rich country?

Accepted Answer

A)  The money payment is more valuable than the costs of having the pollution. 
B)  The poor country values health less than rich countries. 
C)  Poor countries have better technologies for storing pollution. 
D)  Poor countries have more space for storing pollution. 
A)  The money payment is more valuable than the costs of having the pollution. 
B)  The poor country values health less than rich countries. 
C)  Poor countries have better technologies for storing pollution. 
D)  Poor countries have more space for storing pollution.

Question 19

Briefly describe the three views that have proven influential in judging the distribution of wealth in economies.

Accepted Answer

1) John Rawls's maximin principle: accor

Question 20

The economic reasoning for exporting pollution from rich to poor countries is that:

Accepted Answer

A)  the rich value health more than money and the poor value money more than health. 
B)  the rich value money more than health and the poor value health more than money. 
C)  pollution is a more severe problem in the rich countries than in the poor countries. 
D)  the poor countries can use the money they make to resolve the problems of pollution. 
A)  the rich value health more than money and the poor value money more than health. 
B)  the rich value money more than health and the poor value health more than money. 
C)  pollution is a more severe problem in the rich countries than in the poor countries. 
D)  the poor countries can use the money they make to resolve the problems of pollution.

Exam 21: Economics, Ethics, and Public Policy

Trade-offs often include:

The amount of money the American government spends annually on foreign aid is:

Positive economics involves making recommendations for what economic policy should be.

Those that argue that allowing kidney sales is not exploiting poor people argue that: I. poor people can always say "no" if they value their kidney more than the money offered. II. only low prices are exploitive. III. voluntary trade can make both parties better off.

Economics is an ethical subject in the sense that: I. economics is a normative science. II. the market produces goods and services based on what people want, thus respecting choice and preferences. III. the market treats all demands equally no matter who they stem from.

Positive economics explains economic events without making judgments.

Which statement is likely a suggestion of the utilitarian?

Which principle would most likely be favored by J. K. Rowling, the author of the Harry Potter book series and one of the richest persons in the world?

The National Horse Protection League does not want anyone eating horses, especially foreigners.

It's often difficult to resolve meddlesome preferences with other values that are considered important.

Economics is an ethical subject in the sense that:

Why are remittances like an "import" industry to Mexico?

Utilitarians advocate redistributing income from rich people to poor people only up to the point that:

The difference between positive and normative economics is that:

One of the objections to standard economic reasoning is the problem of _____.

Gary Becker supports:

Why would a poor country accept pollution from a rich country?

Briefly describe the three views that have proven influential in judging the distribution of wealth in economies.

The economic reasoning for exporting pollution from rich to poor countries is that:

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