Intro to Economics-chapters 1-4

Theft is usually considered a victimless crime. True or False True False

false

A tax rate is defined as the:

percentage of the tax base that must be paid to the government as tax.

Two reasons that the environmental movement developed in modern, industrialized countries are that: there was no pollution prior to the 1900s. pollution control is a luxury good, and the type of pollutants we have in modern times are more toxic than pollutants used to be. increased population has stressed the environment, and people in the U.S. have greatly decreased their consumption of goods as a result. This was not discussed in the text.

pollution control is a luxury good, and the type of pollutants we have in modern times are more toxic than pollutants used to be.

Which of the following is considered by some to be a victimless crime? pornography arson rape murder

pornography

A major reason that inner-city schools are under-financed is that:

they do not have an adequate property tax base.

"Truth in Sentencing" laws result in prisoners serving longer prison sentences before being eligible for parole. True False

true

A shift of the supply curve to the right is an increase in supply. True or False True False

true

Environmental quality is a luxury good. True or False

true

(Appendix 1-1) The following three questions refer to the production possibilities schedule below. Alternative Housing Food A 140 0 B 120 10 C 90 20 D 50 30 E 0 40 What is the opportunity cost of the first 10 units of food? $200,000 20 units of housing forgone 50 units of medical care forgone We cannot say because we do not know the price of either housing or food.

20 units of housing forgone

Based on data in the text, about which percent of the population age 25 or older has at most a high school diploma?

30%

What is the opportunity cost of the last 10 units of food? 20 units of housing forgone 50 units of housing forgone 50 units of food We cannot say because we do not know the price of either housing or food.

50 units of housing forgone

A study cited in the text that compares educational achievement of 15-year old students among OECD countries reveals that U.S. students rank:

ABOUT THE SAME AS OTHER COUNTRIES

Government support of K-12 public education can be justified by education's substantial spillover benefits. True or False True

TRUE

Based on data in the text, which country causes the largest carbon dioxide emissions?

CHINA

The Organization of Petroleum Exporting countries (OPEC) in the past has been able to keep petroleum prices high by:

DECREASING SUPPLY

The principal problem with financing K-12 education by means of the local property tax is that: it causes wasted resources. educational opportunity is not equal throughout the state. people who do not have children in local schools still have to pay property taxes. low-income children cannot attend school.

EDUCATIONAL OPPORTUNITY IS NOT EQUAL

tax on production that causes air pollution is called:

EMISSIONS

Based on date in the text, the United States spends more per capita on education than any other country. True or False

FALSE

Generally speaking, the economist's view is that all pollution should be eliminated. True or False

FALSE

The performance standard approach to regulation specifies the maximum level of pollution as well as the specific means of compliance. True or False

FALSE

The private market overallocates resources to products with spillover benefits. True or False

FALSE

Unlike negative externalities, positive externalities may cause inefficiency but do not create inequity. True or False

FALSE

Marketable pollution permits are considered efficient, but have never actually been used. True or False

False

President Obama supported the construction of the Keystone Pipeline, though Republicans in Congress largely opposed it. True or False

False

Based on data in the text, carbon dioxide emissions in the United States:

HAVE GROWN SINCE 1980

Spending that is designed to improve the productivity of people refers to an investment in:

HUMAN CAPITAL

The text assumes that if government were to legalize drugs, their usage would most likely: not change. decrease. increase. not change, but price would go down.

Increase

Which of the following does not represent a market failure? spillovers market power the need for public goods and services technology change

Technology change

Based on data in the text, which level of government provides the greatest amount of financing of K-12 education?

LOCAL

State tax appropriations to public universities: benefit mainly low-income students. benefit students of all income levels equally. mainly benefit middle- and high-income students. are increasing as a percentage of state budgets.

MIDDLE AND HIGH INCOME STUDENTS

A movement from Point B to Point C represents: economic growth. scarcity. opportunity cost. inefficiency.

Opportunity cost

The main problem in financing K-12 education is the primary use of the:

PROPERTY TAX

Expenditures on which of the following have increased most in recent years? courts police activities prisons after school programs for juveniles

Prisons

A design standard specifies not only the required level of performance (in controlling pollution), but also the means to reach that performance.True or False

TRUE

Economists generally believe that K-12 education has more positive externalities than does higher education. True or False

TRUE

What do tuition vouchers, magnet schools, and charter schools have in common?

They are all programs that would increase competition in K-12 education.

The term "pollution fees" can include both effluent fees and emissions fees. True or False

True

Based on data in the text, which country uses the most petroleum?

US

Opportunity costs are displayed in the production possibilities graph as: a movement along the curve. a point below the curve. a point out beyond the curve. They are not displayed by production possibilities.

a movement along the curve.

Among the reasons that U.S. incarceration rates have increased in recent years are: mandatory sentences for drug offenders. "three strikes and you're out" legislation in some states. "truth in sentencing" laws. all of the above.

all of the above

An economic argument against the legalization of drugs is: the personal health consequences of drug use. drug related social problems. at least some reduction of drug usage. all of the above.

all of the above

Some characteristics of a public good are that it is: indivisible. nonrivolrous. nonexcludable. all of the above.

all of the above

Which of the following can cause an outward shift in the production possibilities curve? an increase in the quantity of resources an improvement in the quality of resources an improvement in technology all of the above

all of the above

Which of the following is not considered a service? health care education an automobile city mass transit

an automobile

The best way of evaluating crime prevention programs from an economic perspective is to look at their: deterrent effects. benefits and costs. number of prosecutions. popularity with the public.

benefits and cost

The creation of market for pollution permits: completely eliminates air and water pollution. causes firms to seek out low-cost pollution-reducing technologies.

causes firms to seek out low-cost pollution-reducing technologies.

An economic argument for the legalization of drugs is: the unqualified success in controlling the international drug supply. drug usage would most likely decrease. there would be a decrease in crime. illegal drugs really cause few personal or social problems.

decrease in crime

If the government were to tax legalized drugs, we assume this would: increase their supply and decrease price. increase their supply and increase price. decrease their supply and increase price. decrease their supply and decrease price.

decrease their supply and increase price.

When the demand curve shifts to the right, we say: price has decreased. equilibrium quantity has decreased. demand has decreased. demand has increased.

demand has increased

When supply increases in a graph of demand and supply: equilibrium price will increase, but equilibrium quantity will decrease. equilibrium price will decrease, but equilibrium quantity will increase. both equilibrium price and quantity will decrease. both equilibirum price and quantity will increase.

equilibrium price will decrease, but equilibrium quantity will increase.

What is the best example of the indirect (opportunity) costs of college education? tuition room and board foregone earnings from attending college instead of working books, lab fees, and other such items

foregone earnings from attending college instead of working

The term public, as used in this course, refers to: consumers. businesses. workers. government.

government

Appendix 1-1 This production possibility schedule displays increasing opportunity costs. constant opportunity costs. no opportunity costs. perfect opportunity costs.

increasing opportunity cost

The ability to influence the market price of a product is: competitive pricing. microeconomic pricing. market power. economic power.

market power

Which of the following is not considered to be a resource in economics? land labor machinery money

money

The best way of evaluating crime prevention programs from an economic perspective is to look at their: deterrent effects. benefits and costs. number of prosecutions. popularity with the public.

national defense

Fill in the blanks to complete the following statement. Price and quantity demanded are _____________ related, and price and quantity supplied are ________________ related. negatively, positively positively, negatively negatively, not not, negatively

negatively, positively

Most of our expenditures for the War on Drugs are spent on: programs to educate young people about the dangers of drug use. programs to decrease the supply of drugs. programs to decrease the demand for drugs. "safe-needle" programs.

programs to decrease the supply of drugs.

Police protection and national defense are examples of: capital goods. public goods and services. private goods. resources.

public goods and services

technology forcing is defined as: allowing firms to choose the type of technology to be used in pollution control. requiring firms to use specific types of technology to be used in pollution control. forcing firms to purchase the technology to be used in pollution control. forcing firms to produce the technology to be used in pollution control.

requiring firms to use specific types of technology to be used in pollution control

Economics deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking.

scarcity

Opportunity cost refers to: the dollars spent on a product. the best alternative forgone to produce or consume something. the resources used to make something. the money spent by a business to produce something.

the best alternative forgone to produce or consume something

According to the textbook, the decisions about pollution control in the case of pollution that extends beyond state boundaries should be made by: city governments. county governments. state governments. the federal (and possibly international) governments.

the federal (and possibly international) governments.

When we say "all other things equal" with regard to demand and supply, we mean that:

the market is at equlibrium

Because education has spillover benefits, the private market will:

underallocate resources to education