Question 1

According to a required reading by P.J. O'Rourke, which of the following statements is false?

Accepted Answer

A)  in most of the world, food production has well outpaced the growth of population
B)  democracy may be able to help prevent famines from occurring
C)  in countries experiencing famine, security and order must be established before the famine can be contained
D)  famines are mainly caused by natural disasters or pestilence D

Question 2

impossibility theorem was propounded by

Accepted Answer

A)  hicks
B)  arrow
C)  kaldor
D)  scitovsky B

Question 3

A public good is

Accepted Answer

A)  a good that the public must pay for.
B)  nonrival in consumption.
C)  more costly than a private good.
D)  paid for by the government. B

Question 4

According to a required reading from the 2003 Economist, the biggest problem facing Indonesia's economy is

Accepted Answer

A)  terrorism
B)  an organic approach to public policy questions
C)  inadequate rule of law
D)  geographical (e)  hobbits

Question 5

The assigned Washington Post Op-Ed by Daniel Chirot can be interpreted as asserting that

Accepted Answer

A)  inadequate education and lack of knowledge of history in the population is why saddam hussein's government succeeded in ruling iraq for so long
B)  the right way to think about saddam hussein's government is basically as if he were the head of a mafia organization
C)  saddam hussein's government could be described as adhering to an organic philosophy
D)  the biggest problem in iraq under saddam hussein was a lack of rule of law

Question 6

The marginal rate of substitution is

Accepted Answer

A)  the slope of the pareto curve.
B)  the slope of the contract curve.
C)  the slope of the utility possibilities curve.
D)  the slope of the indifference curve.

Question 7

According to a required reading by P.J. O'Rourke, which of the following statements is false?

Accepted Answer

A)  the pesticide ddt may have done more good than harm in some countries before it was banned
B)  despite their other problems, eastern european countries did a good job protecting the environment during the communist era
C)  the costs of environmental regulation exceed their benefits
D)  recycling is an economically inefficient way of reducing the human impact on the environment

Question 8

The Coase theorem has problems because

Accepted Answer

A)  generally, bargaining costs are not zero.
B)  individuals are not concerned with others.
C)  markets always exist.
D)  all of the above.

Question 9

According to the required reading from the 2003 Washington Post, a recent study by the U.S. Office of Management and Budget found that

Accepted Answer

A)  the benefits of tough new clean-air regulations in the past decade were five to seven times greater than their costs
B)  the most efficient way to control pollution is through pigouvian taxes
C)  the 1990 clean air act has not affected the problem of acid rain
D)  environmentalists are generally supportive of cost-benefit calculations in assessing

Question 10

The M RTS L,K between any two inputs be equal in the production of all commodities. 3. The MRPTx,y be equal to the MRSx,y for any two goods.

Accepted Answer

A)  condition 1&2 are satisfied
B)  condition 1 &3 are satisfied
C)  condition 2 &3 are satisfied
D)  condition 1, 2 &3 are satisfied

Question 11

Which method can help in obtaining a welfare improvement if externalites exist?

Accepted Answer

A)  pigouvian taxes
B)  regulation
C)  assigning property rights and permitting bargaining
D)  all of the above

Exam 2: Economics and Public Goods: Understanding the Concepts and Challenges

According to a required reading by P.J. O'Rourke, which of the following statements is false?

impossibility theorem was propounded by

A public good is

According to a required reading from the 2003 Economist, the biggest problem facing Indonesia's economy is

The assigned Washington Post Op-Ed by Daniel Chirot can be interpreted as asserting that

The marginal rate of substitution is

According to a required reading by P.J. O'Rourke, which of the following statements is false?

The Coase theorem has problems because

According to the required reading from the 2003 Washington Post, a recent study by the U.S. Office of Management and Budget found that

The M RTS L,K between any two inputs be equal in the production of all commodities. 3. The MRPTx,y be equal to the MRSx,y for any two goods.

Which method can help in obtaining a welfare improvement if externalites exist?