LUOA Economics Final exam study

Which of the following represents a market clearing price?

A condition in which supply meets demand and stabilizes prices

Just who exactly are the beneficiaries of pro inflationary policies

Debtors benefit the most and never creditors or savers!

Egalitarianism promotes

Equality of results, Redistribution of wealth.

Which economic system rewards people according to the intelligence, creativity, and diligence of their work?

Free market system

Which of the following will not promote a country's economic prosperity

High marginal tax rates

Why are the price coordinated Economy is superior to command economies and allocating scarce resources and meeting demand

Price for new the condominiums are able to harness variable uses scarce resources in order to meet consumer demand.

_________Develops when individuals are all acting according to individual plans, as just the right amount of goods and services become readily available. This process also requires tremendous__________. As no central planner is needed to make certain that items come into existence.

Spontaneous order, Coordination.

Competition exists...

as a consequence of economic scarcity.

Prices are calculated by relating ___________ two prices by communicating which goods to produce and how to most effectively produce them.

costs

If society held to an economic vision of equality of results, how would this goal alter the role of government? Choose all that apply.

1. Governments should attempt to equalize all human attributes to ensure there's no disparity or inequity in the acquisition of property. 2. Governments should pursue economic measures of social justice to ensure that everyone has the exact same economic success 3. Governments should disregard natural human hindrances and propose policies which economically advance some over others in the name of social justice.

Trade barriers negatively impact economic progress because

1. trade restrictions reduce imports because countries find it increasingly difficult to pay the tariff and produce a profit. 2. tariffs acts like a subsidy, which discourages competition and efficient use of resources—businesses become subsidy-dependent and, hence, discouraged from wise innovation. 3. costs will also increase for consumers in the form of higher prices, as tariff costs are now built into the total price of a good or service. 4. they create predictable inefficiencies in any industry intended to benefit from the barrier.

Which of the following adequately captures changes in equilibrium?

A change in market equilibrium is due to a shift in demand, A change in market equilibrium can occur when shifts take place in both supply and demand, A change in market equilibrium is due to a shift in supply. All of these are correct.

According to Reverend Soriko, we must make some rather "crucial distinctions and "which will assist us in understanding the connection between morality and economic liberty more adequately. A series of such distinctions are presented below. Which of the following will assist us in this endeavor?

A distinction between rights and privileges

Inflation is Best defined as

A general rise in prices across an entire economy

Rent control is

A government mandated price ceiling that will result in shortages in the rental house market

A minimum wage law is

A government mandated price floor that will result in surplus is in the labor market.

Which of the following best identifies a market monopoly or the consequences of such?

A market monopoly characterizes the firm which uniquely specializes in the creation of a specific good or service which customers are incentivized to purchase and which other firms are incentivized to invest in.

Inflation

A monetary phenomenon and expressed in the general rise in prices across an entire economy

What is a price ceiling?

A price ceiling establishes a maximum price that can be charged for a good, service, or resource.

Which of the following defines a price floor?

A price floor is a government established a minimum price that buyers must pay for a good or resource.

Which of the following define the law of supply?

A principle that states there is a direct relationship between the price of a good and the quantity of it producers are willing to supply

Which of the following the times the law of the man?

A principle that states there is an inverse relationship between the price of the good and the quantity of it buyers are willing to purchase .

According to Reverend Siriko, "to in sure that free markets are preserved as much as possible by our public policies, ... We must provide_____________"

A robust explanation of their moral value.

Which of the following represents the philosophical nature of the US Constitution 1787

A system of limited civil government for purposes of ensuring ordered liberty

Which of the following correctly defines the term worldview?

A worldview is a philosophy of life which the temps to address an answer the grand questions of life in such a way that men can actually live, or live according to his design.

According to Madison, what sort of property is considered to be most valuable?

According to Madison, the most sacred form of property is a man's conscience

Which of the following is not a major entitlement program?

All of the above are major US entitlement programs.

Which of the following best explains the location or nature of these terms as part of the American constitutional order and system: more perfect union, justice, domestic tranquility, Common defense, general welfare, and the blessings of liberty?

All of these terms are located in the preamble to the US Constitution.

Competition

Allows people to gravitate towards what they do best as the goal of any free market as productivity and productive employment.

Which of the following leads to shift in the supply curve?

Amount of sellers Expectations relative to future prices Technology Input prices All of these are correct.

How does the fallacy of failing to see what is not seen operational in the demand for public works projects?

Any tax devoted to finding the bridge, relative to employment and materials, means that amount of money was transferred farm, or diverted from, private use and no longer available to finance projects people need.

what is meant by, or implied by, equality of opportunity as an economic principal

Arbitrary obstacles such as gender, class status, race, and ethnic differences should never be erected to obstruct individuality in the market. Some suffer loss, while others replenish it; a natural equality of outcome or result cannot exist. Natural hinderances and differentiation do exist, resulting in differences in individual performance. All of the above

The Axiological dilemma deals with what life-question in a final way?

Axiology attempts to deal with issues of ultimate value.

James Madison quotes from sir William Blackstone's commentaries on the laws of England and specifically that section which established the origin of property from Genesis 1:28. Which of the following does not model Blackstone's use of this passage?

Blackstone understood Genesis 1:28 as God granting man the authority to do whatever he wanted with creation. Though God created, he left his creation to man to dispose of in whatever manner he saw fit

Does a change in the price of sugar and an input for making ice cream affect the supply curve or the demand curve?

By raising the costs of production, it reduces the amount of ice cream that firms produce and sell at any given price, altering the supply curve.

Which of the following spending categories and most new deal programs fall into, which most social welfare programs still

Category four, you spend another person's money on someone else.

FDR's brain trust consisted primarily of

Close advisers drawn from the Academy is who shifted from the belief in individual responsibility, and a D centralized and limited government to the police and social responsibility and a centralized and powerful government.

Competition is the absence of _____________ , And the presence of an environment of freedom which maximizes ones volitional capacity to choose

Coercion

Which of the following is not a carrot stick of reliable form of money?

Compartmental

Which of the following is an incorrect statement?

Competition means central planning, or the direction of the whole economic system according to one unified plan.

Which of the following is not a characteristic of competition

Competition necessitates legislation which supports the economic needs of infant industries by protecting them from more innovative and seasoned industries dominating the market.

Thomas soul has proposed a thesis which explains differences in policy outlooks ultimately located in contrasting worldviews. Which of the following identifies the thesis?

Conflicting visions of a constraint and unconstrained nature

If the interpretation of the congressional authorization to meet the general welfare of the United States as indicated in article 1, section 8, clause one is separated from the subsequent list of enumerated powers, then Congress has what sort of authority in securing the general welfare of the United States?

Congress has an unlimited grant of congressional taxing and spending authority in order to achieve the general welfare of the United States and can use its own discretion to determine what the general welfare is.

Fill in the appropriate blanks: The principle of property, linked to individuality, issued fourth in an equality of civil protection for liberty of______and the necessary freedoms to pursue______and religious duties owed to God and neighbor. Such duties include charity and private philanthropy.

Conscience Moral

Which of the following does not address the importance of studying the implications of constitutional Federalism for economic policy?

Constitutional federalism assists us in determining how far the national Authority's power extends to subject and object of an economic nature. Constitutional federalism assist us in determining converse is constitutional authority to legislate on such economic matters as health, housing, wages, and prices, to name a few or whether or not these economic issues should be left up to free markets. Constitutional federalism assist us in determining the national governments lawful role in economic matters. All of these are correct

Which of the following best identifies the subjective theory of value

Consumers will weigh the value of any good or service relative to their incentives and the importance of such good or service relative to their self interest

Competition enhances ________ through constant interaction and exchange. Consumers compete against consumers, producers against producers.

Cooperation

Profits are calculated by relating_______two prices by communicating which goods to produce, and how to most Efficiently produce them.

Costs

What is covetousness?

Covetousness is the inordinate longing for the wealth of others and its gain through unjust means.

Which of the following are Characteristics of a reliable form of money

Divisible, Portable, Durable.

In the history of the United States a common law relative to private towards which relates to private wrongs there is no legal duty to act as a Good Samaritan social Security, unemployment benefits, corporate subsidies, farm subsidies, public housing, and countless other manifestations of the welfare state are all course transfers which impose an affirmative ____________ to rescue upon us. Many of the beneficiaries of coarse are not in peril or Even in the least bit needy but have learned to play the political game well enough to collect the large amounts from the government

Duty

GDP and CPI, employment, fiscal policies such as taxation, monetary policy, the money supply, and inflation, which includes a discussion of the federal reserve system, as well as international trade are all

Economic concerns

In the final analysis, why do economic exchanges even occur?

Economic exchanges occur because individuals value a product they exchange another for more because they believe that product will better satisfy their personal needs or wants.

Equality of outcome requires what sort of government policy?

Economic leveling, Higher and unequal taxes, Wealth redistribution, Equality of conditions, All of the above

Which of the following best defines or characterizes economic profit in a free market

Economic profit is understood as total revenue minus total cost.

What is Leonard reads main point in "eye pencil"

Economics cannot be planned, as no one possesses all the necessary knowledge and skills to produce even a simple pencil.

According to the COR, what is Economics

Economics is the study of the principles and methods of allocating scarce resources to achieve optimal production, distribution, and consumption of wealth.

Free international trade allows domestic producers and consumers to benefit from economies of scale. What is meant by this?

Economy of scale relates to the cost advantages of enterprises in relation to the amount of goods and services they're able to produce relative to the size of their operations. Larger firms are able to reduce costs per unit given increased production and operational efficiencies and require large markets, often supplied through international trade.

Profits will quickly solve a shortage and provoke greater levels of economic ____________, especially a more efficient use of property and scarce resources.

Efficiency

The app is molded you call the limo deals with what life question in a final way?

Epistemology contains ultimate answers to the question "how can I know what is true"

In the 19th century early America private charity and philanthropy were possible because those who accumulated fortunes were able to donate freely. Which of the following allows these sorts of moral obligations of serving one's neighbor?

Equality of opportunity and personal liberty which allows one to for fill their moral obligations under God.

________Represents a state in which the conflicting forces of supply and demand are in balance

Equilibrium

Equality of outcome is now the passionately pursue the goal of numerous organizations and the purpose of federal legislation. Which of the following identifies this?

Everyone ought to reach the economic finish line at the same time.

According to Ewert, the Christian left asserts that free-markets are based upon and encourage an ethic of selfishness. How does Ewert counter this?

Ewert has discerned that though the "free market does allow "self directed" actions, it does not require "selfish" economic actions." The market itself does not require an attitude of selfishness to direct the production and sale of goods and services.

Which Of the following is incorrect

Federalism assumes that all power is lodged within the people generally.

Banks in the United States assist in the creation of money through the

Fractional reserve system

Which of the following is not a consequence of The free international trade?

Free international trade results in the dumping of products in international markets, thus intentionally under cutting domestic labor forces, driving up costs, and therefore producing antagonism between nations. The only peaceful option is to promote tariffs, which are natural consequences of free international trade.

Which of the following is not true relative to the Cristian left's moral indictment of the free market?

Free markets actually encourage the formation and maintenance of the most basic human community, such as the family. The right to private property, which free markets require, is vitally connected to the integrity of the family unit

Which of the following is not true relative to the Christian left his moral indictment of the free market?

Free markets actually encourage the formation and maintenance of the most basic human community, such as the family. The right to private property, which free markets require, is vitally connected to the integrity of the family unit.

GDP can be measured into ways which of the following represents the expenditure approach?

GDP can be derived by totaling the expenditures on all final user goods and services produced during the year.

GDP can be measured in two ways which of the following represents the resource Cost income approach

GDP can be determined by totaling all the income payments to the resource suppliers and the indirect cost of producing the goods and services.

GDP cannot measure which of the following

GDP does not count non-market production. GDP cannot make adjustments for leisure or recreation. GDP cannot measure the economic output of an underground economy. GDP cannot adjust for harmful situations, like terrorist attacks, or natural disasters such as hurricanes, tornadoes, or massive fires. All of these are correct

GDP is the most widely used indicator of economic performance. Which of the following defines it?

GDP represents the market value of final goods and services produced within a country during a specific time period, usually a year.

Which of the following best captures the essence of the Christian world view?

God applies to the whole of life

Which of the following is not a fundamental biblical proposition relative to economics

God has determined that man position himself as a servant of the earth and, therefore, to ensure that the environment is perpetually protected.

Which of the following is not a moral criteria of the free market or a necessary part of the ethical foundations of economics?

Good intentions

There is no more persistent and an influential faith in the world today then the faith in ___________ spending. Everywhere government spending is presented as a panacea for all our economic ills

Government

Which of the following is not a characteristic of free market?

Government Coercion

Which of the following is not a characteristic of the free market?

Government Coercion

Why do taxes generally discourage production?

Government cannot create wealth responding. In this regard, taxes destroyed private investment opportunities and, therefore, production. When a corporation loses 100 cents of every dollar it loses and is permitted to keep only $.52 of every dollar gains, and when it cannot adequately offset its years of losses against its years of gains, its policies are affected such that it will no longer expand its operations. Since individuals are not allowed to keep much of their income, they are deterred from new ventures, well employers refuse to hire new employees because they're fearful of expanding their operations. All of the above

Why do governments increase the quantity of money to rapidly?

Government demand for growth and spending, or government expenditures.

Which of the following is not a major source or principle of economic progress

Government regulatory policies that reduce trade encourage and promote economic progress.

According to Madison, governments are not just, nor property secure under it when:

Governments impose arbitrary restrictions, exemptions, and monopolies and consequently deny citizens the free use of their internal property, Governments do not respect the rights of property and property in rights, Governments apply on equal taxes to reward one type of property and press another, Governments arbitrarily seize property to give to others. All of these are correct.

What is the proper role of government relative to equality of opportunity?

Governments should protect the private use of private property and avoid hindering expressions of individuality in the market.

What is the best cure for inflation

Hey study reduction in the rate of monetary growth is the only means by which inflation can be remedied

Which of the following is not a true statement from a Biblical perspective

Human individuality is actually illusory. Man's value is best equated with group identity and equality of sameness.

Entitlement programs have what sort of impact upon work incentives?

If transfer payments and benefits generally exceed the income of those taking advantage of such programs and find that they're disposable income increases if they do not raise their income levels through work, they are not incentivized to increase their work efforts

Why do we find that the values of different goods are very different in degree and that the value of a good frequently changes?

In a free market, the value of any good is established based upon the satisfaction of our needs and, therefore, differences in importance relative to individual preferences.

An ______________ is a basic motivating a limit or is us to make decisions and pursue actions-any kind of action-as well as markets related ones

Incentive

________Affect our economic choices, that is, our choices among alternative, incompatible uses of scarce resources.

Incentives

____________affect our economic choices, that is, our choices among alternative, incompatible uses of scarce resources.

Incentives

Not all goods are normal, if the demand for a good rises when income falls, the good is called an ___________ _____________

Inferior good

Friedman identifies five general truths relative to inflation. Which of the following is not part of that analysis?

Inflation always benefits creditors and especially banks and, therefore, is a favorable monetary policy to implement.

Is the monetary policy of inflation best equated with a mirage or oasis?

Inflation is a mirage, as people confuse money with wealth, as opposed to products and services and, therefore, assume the more dollars they acquire, the wealthier they are.

Which of the following is not a consequence of inflation

Inflation results in economic stability and predictability.

Which of the following is not true about the consequences of inflation

Inflation will benefit all economics groups and, in the long run, increase overall economic growth.

A price index measures the cost of purchasing a market basket of goods at a point in time relative to the cost of purchasing the identical market basket during an earlier reference period. A base year is chosen and assigned a value of 100. As prices increase in the cost of purchasing the reference bundle of good surprises relative to the base year, the price index increases proportionally. A price index of 110 indicates that the general level of prices. Period A base year is chosen and assigned a value of 100. As prices increase in the cost of purchasing the reference bundle of goods rises relative to the base year, the price index increases proportionally. A price index of 110 indicates that the general level of prices...

Is 10% higher than the base year

Direct Spending

Is the same as mandatory spending, and consists of entitlement funding.

It was necessary to broach the topic of article 1, section 8, clause one and the reinterpretation of the general welfare clause because

It has led to an expansion of national power. It has led to a massive federal budget. It is led to civil economic and Social intrusion into virtually every area of American life.

Which of the following is not a predictable consequence of minimum-wage laws?

It may encourage students to stay in school despite the need for more labor given labor shortages.

Where does the right to the ownership of private property originate, and which British common law recognized?

It's origination is recorded in genesis 1:28: God establishes a general grant of dominion to all mankind and can lawfully do so because he owns all the earth.

Check the following properly defined the word jurisdiction?

Jurisdiction refers to the lawful use of lawful authority

Profits actually guide the factors of production such as ______, labor, and capital in accordance with demand.

Land

Which of the following does not capture the essence or consequence of free market competition

Lower quality of production and higher prices of products and services

Which of the following correctly identifies macroeconomics?

Macroeconomics emphasizes aggregate markets to discern GDP and CPI.

Which of the following represents James Madison's interpretation of the general welfare and common defense clause?

Madison explained that the common defense and general welfare are general expressions understood through the specification of the objects which follow the clause, as their relationship was indicated by a semi colon

The underlying Christian view of economics is:

Man is made in God's image

Which of the following defines a demand curve?

Many people will predictably reject purchasing a product the more costly it becomes, producing a corresponding drop in the demand for that product or service-demand curves slope downward

Which of the following represents a term used to describe the effects of a change in the current production situation or process.

Marginal

Which of the following represents the change in total value of benefit derived from an action such as consumption of additional unit of a good or service? It reflects the maximum amount that the individual considering the action would be willing to pay for it.

Marginal benefit

Which of the following represents the change in total cost resulting from an action such as the production of an additional unit of output

Marginal cost

Decisions are made at the_________, as individuals should exchange when marginal benefits exceed the marginal costs

Margins

Which of the following correctly identifies micro economics?

Microeconomics highlights local, individual economic decisions of producers and consumers within various markets.

Regardless of the country, inflation is always And everywhere a_________Phenomenon! Inflation is a printing press issue, and that means it's a government issued, as governments are in charge of a nations printing presses

Monetary

Which of the following correctly identifies a monetary policy?

Monetary policy is a national policy pursued to ensure money is available for the whole economy

Money must retain certain Cara sticks if it is going to make a valuable medium of exchange one of these Charis sticks is that money should be assayable what is meant by this?

Money cannot be readily counterfeited

The free market is moral because it's based on merit. Individuals are rewarded when they produce goods and provide services that people want. The free market requires that you think about others and their needs and attempt to please them. This is also referred to as the____________.

Morality of the market

If the amount of goods and services for purchase increased in tandem with the money supply, prices would be

More or less stable

What represents the policy plank of the Franklin Delano Roosevelt administrations

New deal

Why does rent control worsen the longer it continues?

New house thing is not built because there is no incentive to build it, With the increase in building costs, the old levels of rent will not result in a profit, It encourages wasteful use of space, Landlords are not incentivized to remodel or improve upon existing rentals. All the above

What does Reed mean when he uses the term "mastermind" when explaining the operation of free markets?

No one person or civil authority is dictating market operations; no "mastermind" exists

The minimum wage laws really help the poor and those who are young and considered unskilled workers?

No. While increasing the minimum-wage will increase the wages of low skilled workers, their on the job training opportunities will decline.

Situations and circumstances other than the rapid infusion of money into an economy that can generate an inflationary phenomenon is

None of these are correct

A good for which other things equal, and increase in income leads to an increase in demand.

Normal goods

Which of the following describes a federal reserve monetary tool known as open market operations

Oh Em of consists of the buying and selling of US government securities like US treasury bonds and other assets on The open market, to expand or contract the money supply.

Which of the following does not identify the conditions necessary for exchanges to occur?

One party to the exchange must have sufficient power to Coors the other party into the transaction.

All worldviews must answer for philosophical dilemmas, each of which address a life concern in a final way. What does the ontological question attempt to address a final way

Ontology attempts to provide final answers to the question of origins, lr the ground of being and existence

Progressives and modern critics of equality of opportunity have launched to significant criticisms against the founders of you. First, that equality of opportunity is impossible to achieve. Second, to the extent that equality of opportunity has been tired, it has resulted in a gigantic inequality of outcomes. Equality of____________

Outcome

Why does free international trade make it possible for each country to acquire goods, services, and resources More economically

People generally benefit from international markets when they're allowed to purchase products or services at cheaper costs compared to domestic markets. Countries benefiting from various and peculiar natural resources, geographic and climate illogical circumstances as well as speculation in production techniques as compared to other countries, can produce such products more economically, making their products more attractive to international buyers.

The _____________ to the US constitution represents a justification clause, or interacting clause, by which it is meant that it justifies the creation of the constitution for the purpose of achieving six great and grand objects for which the various power schemes and checks and balances are intended to serve and achieve

Preamble

The ___________ ____________ Coordinates the interaction between supply and demand

Price system

The ____________ coordinates of the interaction between supply and demand.

Price system

How does the face system incentivize protection to the consumer demand?

Prices incentivize producers to meet demand by throwing them into various production efforts to the profit motive thus meeting to consumer demand

How does the rapid printing of money lead it to a General rise in prices?

Prices rise, generally, because people have more money in their pockets and effectively are able to spend more money on goods and services and, hence, bid up the prices. The supply of goods and services has outpaced by the supply of money, resulting in a greater degree of scarcity and a rise in prices generally.

Which of the following represents the most productive method of assisting the poor or those who are in need

Private charity and philanthropy are the best methods The best method of assisting the poor is to allow people to exercise moral duties through conviction of conscience

The legal protection of private ownership of private property is necessary for free markets to thrive. Which of the following does not make an adequate case for this principle?

Private property is never taken care of as well as public property owned by the government because people can be coerced into doing what is right for everyone within a public ownership framework.

Free market competition directions the movement of markets relative to producers responses to consumers and vice versa. Which of the following does not adequately capture this?

Producers desire of the lowest price that the market consumers will bear given their propensity to produce goods and services for charitable causes.

GDP measures...

Production output of a nation's legal economy, which includes all final goods and services.

The bottom line is that incentives do matter, and _______ direct productive efforts and activities to gain advantages and benefits

Profits

The bottom line is that incentives do matter, and______direct productive efforts and activities to gain advantages and benefits

Profits

Which of the following is not characteristic of the nature of profits in a free market economy

Profits are generally the result of continual rise of prices

Which of the following represents a consequence of profits?

Profits will positively alter innovation, resulting in quality products, efficiently distributed goods and services, and an economical use of scarce resources.

Which of the following is incorrect, biblically, in regards to the nature, definition, or characterization of property?

Property, properly speaking, can be isolated to the ownership of external, tangible, and taxable things.

A key source of economic progress is free trade relations between nations, and such trade views ________via tariffs as detrimental and destructive to economies.

Protectionism

Why do nations adopt such strict important laws, and raise barriers to trade?

Protectionism; that is, to protect domestic industries from foreign competitors

Why do public works projects mean taxes?

Public works projects for purposes of employment are consequently, not funded through the free market.

As Beisner notes in his article the vocal justice versus social justice, the Bible does not demand wealth ____________ or equalization

Redistribution

Eagalitarianism promotes:

Redistribution of wealth, equality of results, equality of opportunity

Discretionary spending

Relates to spending on programs funded through annual appropriations acts or appropriations legislation and consists of spending it fixed for a specified amount of time

Cpi represents an economic index which

Represents the general level of prices related to the cost of purchasing a basket of goods compared to the purchase of that same market basket at a previous.

Which of the following identifies the two main categories of external incentives?

Rewards and punishments

Which of the following is not a predictable consequence of high marginal tax rates?

Second, high marginal tax rates will encourage people to work more, harder, and with greater efficiency.

The consequence of fixing a maximum price for a particular commodity would result in a____________for that commodity

Shortage

Price ceilings results in

Shortages

How does the pricing system solve the problem of alternative applications of labor and capital to meet thousands of different needs and wants of different urgency is in society?

Since there is no fix supply of labor and capital, or any resource for that matter, the price system communicates the producers what to make more if fission Lee and to consumers where to purchase quality items more cheaply.

Two goods for which an increase in the price of one leads to an increase in the demand of the other

Substitute

Which of the following represents fundamental reason as to why all poverty relief programs that create or perpetuate dependence, reward sloth, or level those who work hard along with those hardly work at all?

Such poverty programs do not actually enable recipients to exercise godly dominion, ‏This is because such programs strike at the heart of what it means to be human - to bear the image of God, Typically, such programs focus too much on the power and prestige of the givers and benefactors who have a tendency to dominate and oppress recipients

__________ Represents a condition in which the amount of a good offered for sale by producers greater than the amount that buyers purchased at the system. A decline in price will eliminate the surplus.

Surplus

It would be comforting to believe that the government can simply decree higher pay for low-wage workers without having to worry about unfortunate repercussions, but the validity of that belief is open to doubts that cannot be dispelled by the kind of research that would lead to the conclusion that Russian relet is harmless. The preponderance of evidence indicates that labor is not exempt from the basic economic principle that artificially high prices cause _____________ in the case of surplus human beings, they can be a special tragedy when they are Already from low income on skilled, or minority backgrounds and urgently need to get a job if they are ever to move up the ladder by acquiring skills and experience

Surpluses

Price floors results in

Surpluses

Which of the following is not a monetary tool of the federal reserve?

Tax Compliance

all government expenditures must eventually be paid out of the proceeds of __________; That inflation itself is merely a form, any particular he vicious form of taxation

Taxation

Those who tend to benefit the least from public works projects are

Taxpayers

The teleological dilemma deals with what life question in the final way?

Teleology attempts to provide answers to question of purpose and destiny

An American founding principle of equality was a quality before God. What is meant, or implied by this?

That all individuals bear a personal equality before God, who shows no respect of persons. That all men are on equal in respect to abilities and characteristics

What is meant by the phrase "institutional structure and procedure of life"

The "institutional structure and procedure of life" is the total societal and relational expression of answers to all the basic questions in life

Which of the following is incorrect biblically

The Bible asserts an egalitarian approach to life, whereby all individuals should relinquish any rights to the private ownership of property for the public good.

Ewert points out that the so-called secular left appears to have moderated its opposition to free markets based upon pragmatic as opposed to philosophical reasons. Nevertheless, the "Christian Left" Is still much less influenced by the demonstrated failure of state directed economic policies. According to Ewert, why is this the case?

The Christian left appears to prioritize the moral superiority of socialism-they are convinced that capitalism must be judged on its "moral" merits and, in comparison to socialism, it is far more immoral.

Of the following best identifies the significance of the Federalist papers?

The Federalist papers represent the best commentary on the problems of the articles of Confederation and the nature of the US Constitution 1787

Do United States federal government takes in revenue through

The IRS tax code, title 26 USC

Which of the following is incorrect regarding product innovation in a free market economy?

The approval of central planners, a legislative majority, or business rivals are necessary for an entrepreneur to try out a new idea.

James Madison's interpretation of the general welfare clause is represented by which of the following

The congressional authority to achieve the general welfare of the United States is limited, and defined by the subsequent list of specified Congressional powers.

What exactly is "the division of labor" which Adam Smith and Leonhard read refer to?

The division of labor refers to a division of very complex productive ‏ efforts into much simpler tasks which a multitude of individuals perform for purposes of production. The division of labor refers to a variety of labor capacity is distributed among a multitude of people with different degrees of the skills.

Which of the following represents a core main fallacy from which other economic fallacies are derived?

The fallacy of examining only the short term consequences of any given policy

What sort of economic policy does protectionism rest upon?

The fallacy of looking only at one side of the policy or of noticing what is immediately seen, while neglecting the results that are not seen

What is the monetary policy institution of the United States?

The federal reserve

Which of the following represents a topic or issue which arises under macroeconomics

The gross domestic product or GDP

Which of the following statements is true

The implications of assuming a more broad powers scheme relative to the spending power means that Congress can virtually legislate up on any subject matter as long as it is deemed in the general welfare of the country, explaining, in large part, the vast expansion of the national governments role in virtually every area of life, including the economic. Madison would come to conclude that unless a more narrow reading of the spending power is construed, which the framers intended, then the national government would no longer be one of limitation and, therefore, tied down to the specified Enumerated powers. Congress could then legislate on virtually any issue, including economic ones.

Which of the following is not true about rent controls?

The individuals intended to be benefited from rent control actually are, and surpluses in rentals can now be expected.

Which of the following is not true about minimum wage laws?

The individuals intended to be benefitted from minimum-wage laws actually are, and shortages in labor now occur, meaning many more low-skilled workers can expect to be hired.

The division of labor results and increase in the amount of work done which of the following is not a circumstance which promotes such productivity?

The intervention of civil government to coordinate production efforts

The division of labor results in an increase in the amount of work done which of the following is not a circumstance which promotes such productivity?

The intervention of civil government to coordinate productive efforts.

Which of the following defines a market supply curve?

The market supply curve is the sum of the individual supply curves of the firms.

Real GDP is defined as

The market value of final goods and services produced within a country during a specific time period, usually a year, but adjusted for inflation

When considering the fallacy of what is seen and what is not seeing, but typically fails peoples notice relative to protectionist policies? In other words, what is not immediately seen, but nevertheless, very real?

The new industry would be visible, but given the shift in the concentration of capital, other industries would you prevent it from coming into existence-this is what is not immediately seen: all the losses!

In considering a biblical world view statement on property which of the following affirms the ownership of property from the scriptures.

The ownership of property assumes that one is Stuart property as accountable to God, The ownership of property appears to result from the recipient of an inheritance or gifts, The ownership of property appears to be a just reward for labor, The ownership of property cannot be conducted through government coercion. All of these are correct.

Is the purpose of the preamble to the US Constitution?

The preamble limits and defines the general scope of the national governments authority and the powers of the constitution delegates to the various branches are intended to meet those great objects!

According to Madison, what is the primary purpose of the civil government?

The primary purpose of Government is the protection of man's property in both its external and internal forms, a men's rights relative to his property and the property a man has in his rights.

Which of the following is not a consequence of rent controls

The quality of housing will improve.

What is the general significance of supreme court case United States v. butler 297 US one

The supreme court determined through the famous butler case that the general welfare cards must be construed very generally and was not tied down to the subsequent list of Specified powers, The supreme court use the butler case to off the rise the constitutionality of Social Security and the subsequent helevering v. Davis of 1937

Lost the three main functions of the price system.

The three main functions of the price system are to: Transmit Information, Provide Incentive, and to determine distribution.

According to sowwell, which of the following best summarizes the study of economics?

The use of scarce resources which have alternative uses.

What is the fallacy of the welfare state?

The very fallacy of the welfare state is the spending categories required for its existence—waste and the misappropriation of funds is inevitable, while force is required to collect the money.

Which of the following does not adequately explain why an inequality of external property exists?

There exists an obvious inequality of ownership and, in large part, because those who are wealthy take advantage of those who are poor, and thus accumulate wealth through the systematic theft of their property, social injustices represent the main reason for such disparities in property ownership.

Which of the following best identifies the economic term alternative uses?

This term means that available resources have innumerable uses.

Who actually benefits or favors and the quality of outcome

Those who typically favor equality of outcome benefit from it to such as intellectuals and academics. Bureaucrats and administrators, granted oversight over the management of programs initiated to equalize conditions and results, typically favor equality of outcome.

The money supply in the United States is mainly measured

Through two units: M1 and M2

____________Promote economic progress because individuals exchange products, or trade, resulting in vast quantities of goods and services due to specialization in mass production.

Trade

Which of the following is incorrect relative to either the nature of a trade barrier or to consequences

Trade barriers lower the cost of doing business with those protected industries.

the price system utilizes alternative Applications of labor and capital to meet market demands

True

In free economies, ________ always expresses a judgment of the estimation in which something is held because individuals will judge an item to have value if they want it, desire it, or need it.

Value

In free economies,________always expresses a judgment of the estimation in which something is held because individuals will judge in item to have value if they want it, desire it, or need it.

Value

Market transactions only occur if both parties for all parties benefit from the exchange. This ___________ _____________ would not occur if one party was being exploited at the expense of the other party-both parties benefit and are wealthier because of the exchange.

Voluntary exchange

Market transactions only occur if both parties or all parties benefit from the exchange. this__________ __________would not occur if one party was being exploited at the expense of the other party-both parties benefit and are wealthier because of the exchange

Voluntary exchange

Which of the following statements is true relative to voluntary exchange is?

What is being exploited in a voluntary transaction is not someone who is a party to the transaction but the transaction itself. Economic exploitation, properly understood, is to take advantage of a potential voluntary exchange to economically improve one's circumstances.

Annual budgets were first legislatively authorized in the United States

With the budget and accounting act of 1921

Does voluntary exchange permit individuals to realize gains derived from cooperative effort?

Yes. Cooperation assumes interdependence among individuals with diverse gifts and talents and, therefore, individuals exchange what they create for what they need.

A republic is best defined as

a government of laws via representation as opposed to simply a government of men.

Which of the following defines subsidy

a government payment or tax credit provided to either the producers or consumers of certain goods

GDP represents...

a macroeconomic measurement.

Do landlords benefit from rent controls?

a. Absolutely not. They are forced to subsidize the rents paid by their tenants which result in net losses.

The essence of the new deal agenda was

a. a social policy approach of recovery, relief, and social reform legislation.

Deflation results from

a. a swift contraction of the money supply.

The graph of the relationship between the price of a good and the quantity demanded:

demand curve

a table that shows the relationship between the price of a good and the quantity demanded:

demand schedule

A price ________ establishes a minimum price that can legally be charged. When a price floor is imposed above the current market equilibrium, it will alter the operation of markets.

floor

What is the biblical perspective on economics

freedom of enterprise and righteous stewardship of private property

The federal budget of the united states consists of which of the following prominent categories of spending?

mandatory and discretionary

The objective of the Federal Reserve is

monetary equilibrium, by providing liquidity through lending to member banks.

In short, economic analysis indicates that high tax rates will reduce ________ activity, retard capital formation, and promote wasteful use of resources. Predictably, the income of a country that imposes high marginal tax rates will fall below its potential.

productive

Which of the following represents the amount of the good that sellers are willing and able to sell?

quantity supplied

What is meant by the enumerated powers found within the US Constitution?

relates specifically to a particular delegation or accounting, crediting of power, or vestment

A _________ Can occur in a situation in which quantity demanded is greater than quantity supplied

shortage

The availability of ________—goods that perform similar functions—underlies the law of demand. No single good is absolutely essential; everything can be replaced with something else.

substitutes

Competition encourages firms to

supply goods and services consumers value highly relative to cost.

One reason prices are "inflated" is because...

the money supply grows too quickly—the supply is much greater than the demand for it, leading to a general rise in prices.