Econ All past quiz questions

The "Great Misery" refers to the period of time A. from November 1973 through June 1983 when the sum of the unemployment rate and inflation rate was 12.50 or higher for 116 consecutive months. B. throughout most of Bill Clinton's time as President, when the value of Real GDP Per Capita in the U.S. fell by 56.2% between August 1993 and December 2000. C. when Barack Obama was initially President, during which the unemployment rate was above 12% for 20 consecutive months from January 2009 through August 2010. D. right after Donald Trump was elected President (but before he took office) when the Dow Jones Industrial Average lost over 40% of its value in less than six weeks (dropping from 32,021 in early November 2016 to 18,954 in mid-December 2016).

from November 1973 through June 1983 when the sum of the unemployment rate and inflation rate was 12.50 or higher for 116 consecutive months

quiz 4: For Questions 3 and 4, consider a monopolist facing Demand and with Marginal Costs and Marginal Revenue as illustrated below https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing When the monopolist chooses price and quantity to maximize profit, Deadweight Loss A. is equal to "areas (a)+(b)." B. is equal to "areas (c)+(d)." C. is equal to "areas (c)+(d)+(e)+(f)+(g)." D. is equal to "area (h)."

is equal to "areas (c)+(d)."

quiz 4: For Questions 7 through 9, consider a good for which Marginal Private Benefits, Marginal Private Costs, Marginal Social Benefits, and Marginal Social Costs are as illustrated below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Based upon this graph, it appears as if A. production and consumption of this good generates a positive externality. B. production and consumption of this good generates a negative externality. C. this good is clearly sold by a monopolist. D. buyers of this good clearly face an informational problem.

production and consumption of this good generates a negative externality

A society can achieve economic growth by A. providing incentives for their most talented workers to participate in the "Brain Drain." B. implementing policies which would provide incentives for firms to decrease investments in physical capital. C. realizing improvements in technology which fundamentally alter the type of capital available or the production process. D. violating the "Rule of 72."

realizing improvements in technology which fundamentally alter the type of capital available or the production process

The vicious-cycle-of-poverty A. suggests that poverty is self-perpetuating, because poor countries do not have sufficient resources available to make the investments in capital which are necessary for economic growth. B. explains why all wealthy countries must enter a severe depression and become poor at least once every century. C. is apparently true, since every country that was poor a century ago is still poor today. D. None of the above answers are correct.

suggests that poverty is self-perpetuating, because poor countries do not have sufficient resources available to make the investments in capital which are necessary for economic growth.

The Preliminary Circular Flow Diagram directly illustrates A. the difference between rational and irrational decision makers. B. the difference between microeconomic and macroeconomic issues. C. the limits of production that a society faces, by identifying the maximum amount of one good that can be produced for every possible level of production of another good. D. the movement of economic resources (i.e., factors of production and finished goods/services) between households and firms.

the movement of economic resources (i.e., factors of production and finished goods/services) between households and firms.

Between 1929 and 2015, the value of the Stroup Coefficient for the U.S. Federal Income Tax A. consistently and steadily decreased since achieving a peak value of .6719 in 1968. B. was above .60 for 66 straight years from 1942 through 2007. C. took on a value of .7178 in 2015. D. More than one (perhaps all) of the above answers is correct.

took on a value of .7178 in 2015.

____________ were two of the central figures in the formulation of the ideas of Utilitarian Justice, which argues that total social welfare can be increased by income redistribution, so long as people have a diminishing marginal utility for money. A. Max Lorenz and Corrado Gini B. Robert Nozick and John Rawls C. Karl Marx and Friedrich Engels D. Jeremy Bentham and John Stuart Mill

Jeremy Bentham and John Stuart Mill

A good is "non-rival" if A. it is easy (or relatively costless) to prevent consumption by those who do not pay for the good. B. it is difficult (or very costly) to prevent consumption by those who do not pay for the good. C. consumption by one person does diminish the quantity/quality of consumption by others. D. consumption by one person does not diminish the quantity/quality of consumption by others

consumption by one person does not diminish the quantity/quality of consumption by others.

quiz 1: For Questions 11 and 12, consider a society facing the Production Possibilities Frontier illustrated below which is "bowed-out" from the origin (in that it becomes steeper as one moves "down" the curve): https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Of the five output combinations identified above, ________________ is/are "unattainable" (or "not feasible")? A. "A" B. "A," "B," "C," and "D" C. "B," "C," "D," and "E" D. "E"

"E"

Which of the following observations would begin to support a claim that the "Law of Supply" is satisfied in "Market Z"? A. "There is 'excess supply' for Good Z at a price of $22.50. B. "Producers of Good Z developed a new production technique which decreased costs of production, ultimately leading to an increase in the number of units of Good Z produced/sold and a decrease in the price of Good Z." C. "After the minimum wage was increased, Supply of Good Z decreased." D. "Quantity supplied of Good Z is 5,125 at a price of $14.90 and is 3,800 at a price of $10.85."

"Quantity supplied of Good Z is 5,125 at a price of $14.90 and is 3,800 at a price of $10.85."

One of the "Three Fundamental Economic Questions" addresses the "resource use decision" by asking: A. "Of all the different combinations of goods and services that we could produce, what specific combination will we produce?" B. "Which productive resources will be used to produce which goods and services?" C. "How much income should each person in society earn?" D. "Who gets to consume the goods and services that we have chosen to produce?"

"Which productive resources will be used to produce which goods and services?"

In 1900, Real GDP Per Capita was $8,542 in Argentina, $5,536 in Germany, and $2,439 in Singapore. By 2016, Real GDP Per Capita was A. $6,047 in Argentina, $22,331 in Germany, and $14,425 in Singapore. B. $18,695 in Argentina, $46,841 in Germany, and $67,180 in Singapore. C. $24,329 in Argentina, $16,512 in Germany, and $7,428 in Singapore. D. $30,429 in Argentina, $51,117 in Germany, and $23,142 in Singapore.

$18,695 in Argentina, $46,841 in Germany, and $67,180 in Singapore.

Jim bought a new TV from Walmart. His Total Benefits from this purchase were $2,400, while his Total Costs were $800. From this information alone, it follows that his Economic Surplus from this purchase was A. $800 - $2,400 = - $1,600 (i.e., negative $1,600). B. ($2,400 - $800) ÷ 2 = $800. C. $2,400 - $800 = $1,600. D. $2,400 + $800 = $3,200.

$2,400 - $800 = $1,600.

quiz 2: For questions 15 through 18, refer to the graph below, which illustrates supply and demand for "good Y" in 2020. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing 15. Focusing on the 3,425th unit, the buyer of this unit has a "buyer's reservation price" of ________ and the seller of this unit has a "seller's reservation price" of ________. A. $15.20; $19.90. B. $36.90; $9.20. C. $50.10; $15.00. D. $85.00; $49.90.

$50.10; $15.00.

Per Capita GDP for the World as a whole is approximately $17,300 and for the European Union is approximately $39,200. In comparison, the value of Per Capita GDP in the United States is approximately A. $15,250 (about 11.8% less than the value for the World as a whole). B. $27,900 (about half way between the value for the World as a whole and the value for the E.U.). C. $40,625 (about 3.6% higher than in the E.U.). D. $59,500 (about 51.8% higher than in the E.U.).

$59,500 (about 51.8% higher than in the E.U.).

Consider two countries that each have a Per Capita GDP of $2,000 in 2019. Country A realizes a constant 3% increase in Per Capita GDP each year, while Country B realizes a constant 6% increase in Per Capita GDP each year. Given these constant rates of increase, in 2067 (i.e., 48 years in the future), Per Capita GDP will be approximately A. $2,880 in Country A and $5,760 in Country B. B. $4,880 in Country A and $7,760 in Country B. C. $6,000 in Country A and $10,000 in Country B. D. $8,000 in Country A and $32,000 in Country B.

$8,000 in Country A and $32,000 in Country B.

quiz 5: Answer Questions 11 and 12 based upon the graph below. This graph illustrates the Lorenz Curve in "Country X," along with two different Tax Concentration Curves in "Country X" - one for "Tax Code A" (its current tax policy) and one for "Tax Code B" (a proposed different tax policy). The value of: "Area (i)" is equal to .13; "Area (ii)" is equal to .09; "Area (iii)" is equal to .12; and "Area (iv)" is equal to .16. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing The value of the Stroup Coefficient is ___________ and would be ___________. A. .09 under "Tax Code A"; .21 under "Tax Code B." B. .09 ÷ .50 = .18 under "Tax Code A"; .21 ÷ .50 = .42 under "Tax Code B." C. .09 ÷ .37 ≈ .2432 under "Tax Code A"; .21 ÷ .37 = .5676 under "Tax Code B." D. (.13 + .09) ÷ .50 = .44 under "Tax Code A"; (.13 + .09 + .12) ÷ .50 = .68 under "Tax Code B."

.09 ÷ .37 ≈ .2432 under "Tax Code A"; .21 ÷ .37 = .5676 under "Tax Code B."

The country of Benthamstan imposes a progressive income tax which reduces the value of its Gini Coefficient from .32 to .28. This implies that the value of the Pechman-Okner Coefficient for this tax is ______. A. .04 B. .125 C. .30 D. .60

.125

quiz 5: Answer Questions 11 and 12 based upon the graph below. This graph illustrates the Lorenz Curve in "Country X," along with two different Tax Concentration Curves in "Country X" - one for "Tax Code A" (its current tax policy) and one for "Tax Code B" (a proposed different tax policy). The value of: "Area (i)" is equal to .13; "Area (ii)" is equal to .09; "Area (iii)" is equal to .12; and "Area (iv)" is equal to .16. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing The value of the Gini Coefficient in "Country X" is ______. A. .13 B. .26 C. .37 D. .74

.26

quiz 1: Answer Questions 15 through 17 based upon the information conveyed in the following graph (which illustrates the Marginal Benefits and two different levels of Marginal Costs of an activity for a decision maker): https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Suppose Marginal Benefits are given by MB and Marginal Costs are given by MC1. Total Benefits (i.e., Total Benefits, not Total Economic Surplus) would be maximized by choosing Q equal to A. 0 (since Total Benefits are always largest when Q is equal to zero). B. 500 (the quantity at which MB is largest). C. 880 (the quantity at which MB is equal to MC1). D. 1,340 (the quantity at which MB is equal to zero)

1,340 (the quantity at which MB is equal to zero).

quiz 4: For Questions 3 and 4, consider a monopolist facing Demand and with Marginal Costs and Marginal Revenue as illustrated below https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing To maximize profit, this monopolist would sell __________ and charge a price of __________. A. 1,400 units of output; $14.20 per unit. B. 1,400 units of output; $33.50 per unit. C. 2,525 units of output; $22.30 per unit. D. 4,850 units of output; $47.50 per unit.

1,400 units of output; $33.50 per unit.

In 2016 there were ________ deaths from AIDS world-wide, with _____ of these occurring in Africa. A. 1.0 million; 73%. B. 17.3 million; 96%. C. 87.4 million; 12%. D. None of the above answers are correct (since AIDS was eradicated globally in February 2009, shortly after Barack Obama became President of the United States).

1.0 million; 73%.

quiz 3: For questions 11 and 12, consider a country with an adult population as follows: https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing This country's Unemployment Rate is approximately ______. A. 10.0% B. 13.7% C. 22.4% D. 37.3%

13.7%

quiz 3: For questions 17 and 18, consider a country with realized rates of inflation, unemployment, and GDP growth in each year between 2015 and 2019 as summarized in the table below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In which year(s) did this country realize "deflation"? A. 2016 and 2017. B. 2017. C. 2018. D. None of the above answers are correct (since this country did not realize deflation in any of these four years).

2017.

quiz 3: For questions 17 and 18, consider a country with realized rates of inflation, unemployment, and GDP growth in each year between 2015 and 2019 as summarized in the table below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In which year was the Misery Index greatest in value? A. 2015. B. 2016. C. 2018. D. 2019.

2018.

quiz 4: For Questions 7 through 9, consider a good for which Marginal Private Benefits, Marginal Private Costs, Marginal Social Benefits, and Marginal Social Costs are as illustrated below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing The free market quantity of trade is __________, while the efficient quantity of trade is __________. A. 13,700 units; 0 units. B. 13,700 units; 26,000 units. C. 26,000 units; 13,700 units. D. 36,000 units; 26,000 units.

26,000 units; 13,700 units.

quiz 3: For questions 11 and 12, consider a country with an adult population as follows: https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing There are __________ people in the labor force of this country. A. 20,100,000 B. 23,900,000 C. 27,700,000 D. 38,100,000

27,700,000

Suppose that in "Country X" during 2019, the aggregate level of output was Q=(8 billion units), the overall price level was P=(€2.25), and the money supply was M=(€4 billion). It follows that the velocity of money in "Country X" during 2019 was V=______. A. 1.125 B. 1.75 C. 4.5 D. 14.25

4.5

quiz 2: For questions 15 through 18, refer to the graph below, which illustrates supply and demand for "good Y" in 2020. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In equilibrium ________ units will be traded, each at a price of ________. A. 3,425; $15.00. B. 3,425; $50.10. C. 6,700; $34.90. D. 9,785; $50.10.

6,700; $34.90.

The first recession of the 21st century (which began in March 2001) lasted for A. 4 months, during which time GDP increased by 0.2%. B. 8 months, during which time GDP decreased by 0.6%. C. 10 months, during which time GDP decreased by 2.1%. D. 14 months, during which time GDP decreased by 1.7%.

8 months, during which time GDP decreased by 0.6%.

quiz 2: For questions 11 and 12 refer to the graph below, which illustrates Total Social Surplus in the market for Good Z as a function of the level of production/consumption of the good. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing 11. The efficient level of trade of Good Z is _____ units. A. 575 B. 905 C. 1,385 D. 2,145

905

Which of the following could NOT result in a "Change in Demand" for pizza? A. A change in income of pizza consumers. B. A change in the perceived health benefits of eating pizza. C. A change in the price of pizza. D. A change in the price of tacos.

A change in the price of pizza.

Which of the following is a good example of a "Private Good"? A. A sandwich from Jersey Mike's. B. A pay-per-view broadcast of a boxing match. C. The stock of cod in the Atlantic Ocean. D. National Defense.

A sandwich from Jersey Mike's.

____________________ refers to the time that it takes for an enacted stabilization policy to have an impact on macroeconomic outcomes. A. A Decision Lag B. An Inflationary Lag C. An Information/Recognition Lag D. An Implementation Lag

An Implementation Lag

________________ was/were the first economist/economists to argue that automobile accident rates could be decreased by installing a sharp, irremovable, foot long, iron spike to the steering wheel of every car A. Armen Alchain and Gordon Tullock B. Daniel Kahneman and Vernon Smith C. Adam Smith D. Mike Ditka

Armen Alchain and Gordon Tullock

____________ refers to the freedom of an individual to choose to purchase (or to choose to not purchase) a good or service at a price determined in a free market. A. Indicative Planning B. Consumer Sovereignty C. Spontaneous Order D. Deadweight Loss

Consumer Sovereignty

The ________________ states that an individual should undertake an activity if and only if the additional benefit of doing so is greater than the additional cost of doing so. A. Law of Comparative Advantage. B. Law of Absolute Advantage. C. Incentive Principle. D. Cost-Benefit Principle.

Cost-Benefit Principle

quiz 4: For questions 16 through 18, consider a market with Supply and Demand as illustrated below. Suppose that the "free market outcome with no tax imposed" is efficient. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Consider the following two proposed taxes: "Tax A" is a $2.20 per unit tax imposed on buyers; "Tax B" is a $1.80 per unit tax imposed on sellers. We can infer that A. Deadweight-Loss would be larger under "Tax A" than under "Tax B." B. the quantity of trade would be larger under "Tax A" than under "Tax B." C. producers would prefer "Tax A" over "Tax B." D. More than one (perhaps all) of the above answers is correct

Deadweight-Loss would be larger under "Tax A" than under "Tax B."

Bob and Doug spend their workdays making beer and donuts. Bob's Opportunity Cost of producing a unit of donuts is 4.1 units of beer; Doug's Opportunity Cost of producing a unit of donuts is 2.9 units of beer. From this information we know that A. Doug has a Comparative Advantage in the production of donuts and Bob has a Comparative Advantage in the production of beer. B. Doug has a Comparative Advantage in the production of beer and Bob has a Comparative Advantage in the production of donuts. C. Doug has an Absolute Advantage in the production of donuts and Bob has an Absolute Advantage in the production of beer. D. Doug has a Comparative Advantage in the production of both donuts and beer.

Doug has a Comparative Advantage in the production of donuts and Bob has a Comparative Advantage in the production of beer.

____________ is defined as an increase in the money supply which provides a short term stimulus to the macroeconomy, resulting in higher levels of output, employment, and incomes. A. Expansionary monetary policy B. Contractionary monetary policy C. Redistribution D. Hyperinflation

Expansionary monetary policy

quiz 4: For Questions 7 through 9, consider a good for which Marginal Private Benefits, Marginal Private Costs, Marginal Social Benefits, and Marginal Social Costs are as illustrated below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Producing/Consuming 26,000 units would result in A. External Costs for society equal to "areas (a)+(b)+(c)+(d)+(e)+(f)." B. External Costs for society equal to "areas (c)+(d)+(e)+(f)+(g)." C. External Benefits for society equal to "areas (a)+(b)+(c)+(d)+(e)+(f)." D. External Benefits for society equal to "areas (c)+(d)+(e)+(f)+(g)."

External Costs for society equal to "areas (a)+(b)+(c)+(d)+(e)+(f)."

Which of the following was discussed in lecture to illustrate how something akin to the "Coasian Solution to Externalities" has been implemented in practice? A. How kids at "Chuck E. Cheese's" will often try to ride the carousel for free after another child pays a token to start the ride. B. How competition between countries/cities to host the Olympic Games results in an inefficient use of otherwise productive resources. C. How the "Defenders of Wildlife" established the "Bailey Wildlife Wolf Compensation Trust" in order to facilitate the re-introduction of the gray wolf into the wild in the western United States (by compensating ranchers who suffered livestock losses). D. How the 8 teams in the now defunct Alliance of American Football could possibly have been ordered from strongest to weakest in 40,320 different ways.

How the "Defenders of Wildlife" established the "Bailey Wildlife Wolf Compensation Trust" in order to facilitate the re-introduction of the gray wolf into the wild in the western United States (by compensating ranchers who suffered livestock losses).

During our discussion in lecture of government failure resulting from costs of complying with government bureaucracy it was noted that in recent decades people in ____________ have been burdened with "a complex, irrational, almost incomprehensible system of controls and licenses" under which "everything needed (government) approval and a stamp," known as the "Permit Raj." A. Bangladesh B. India C. Iran D. Pakistan

India

During the entire period from 1970 through 2016, the GDP of __________ increased at an average annual rate of 5.62% per year while the GDP of __________ increased at an average annual rate of only 0.99% per year. A. South Korea; Russia. B. India; the Central African Republic. C. Myanmar; Mexico. D. China; the European Union

India; the Central African Republic

quiz 4: For questions 12 through 14, consider a situation in which four candidates (Doug, Kelly, Matt, and Raphael) are potentially running for a vacant Senate seat. Voter preferences are summarized by the table below. Assume all people vote sincerely/truthfully (i.e., in-line with actual preferences). https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Suppose that the position were filled by first having a vote over all four candidates, followed by a head-to-head runoff between the two highest vote getters. The person chosen as the eventual winner from this process would be __________. A. Doug B. Kelly C. Matt D. Raphael

Kelly

The ____________ provides a guide for allocating scarce productive resources to various tasks, which states that when increasing the production of a good, a society should do so by using the available productive resource with the lowest opportunity cost. A. Law of Comparative Advantage. B. Law of Absolute Advantage. C. Incentive Principle. D. Cost-Benefit Principle.

Law of Comparative Advantage.

Lower income countries which are held back by some combination of poor economic institutions, undeveloped industrial capital, and/or an uneducated and unskilled workforce (e.g., India, Ghana, Bangladesh, and the Democratic Republic of the Congo) are referred to as A. Industrially Advanced Countries. B. Less Developed Countries. C. Declining Countries. D. Fourth World Countries.

Less Developed Countries.

________________ is defined as the process by which a legislator votes to approve one bill in exchange for favorable votes from other legislators on other bills. A. Corruption B. Logrolling C. Rational Ignorance D. Rent Seeking

Logrolling

The "Economic Calculation Problem" (which makes the conjecture that a system of planning can never achieve efficient outcomes because planners do not have the information generated by markets) was first articulated by A. Nicolas de Condorcet. B. Ronald Coase. C. James Buchanan. D. Ludwig von Mises.

Ludwig von Mises.

Which of the following is illustrated in the Basic Circular Flow Diagram but NOT the Preliminary Circular Flow Diagram? A. Households. B. Firms. C. Markets. D. An Indicative Planner.

Markets.

quiz 4: For questions 12 through 14, consider a situation in which four candidates (Doug, Kelly, Matt, and Raphael) are potentially running for a vacant Senate seat. Voter preferences are summarized by the table below. Assume all people vote sincerely/truthfully (i.e., in-line with actual preferences). https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In an election between all four candidates, __________ would receive the most votes. A. Doug B. Kelly C. Matt D. Raphael

Matt

______________ observed that the government or the state differs from other decision making entities in that it alone has established "the monopoly of the legitimate use of physical force within a given territory." A. Karl Marx B. Max Weber C. Adam Smith D. Leonard Read

Max Weber

quiz 5: For question 16, consider a society which has realized the changes in and trend in Real GDP illustrated in the graph below. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing This country experienced a recession from ______________________. A. March 2011 through July 2015 B. May 2012 through June 2014 C. April 2013 through July 2015 D. June 2014 through March 2017

May 2012 through June 2014

quiz 3: For question 20, consider the table below which is a partial summary of the socioeconomic "quality of life" measures discussed in lecture. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Country Life Expectancy at Birth Infant Mortality Rate Average Annual Work Time GDP Per Capita (PPP) Japan 85.3 2.0 1,710 $42,700 Norway 81.9 2.5 1,419 $70,600 Canada 81.9 4.5 1,695 $48,7300 Greece 80.7 4.6 1,906 $27,700 Country X 76.1 11.6 2,257 $19,500 Russia 71.0 6.8 1,980 $27,900 India 68.8 39.1 1,974 $7,200 20. "Country X" is ____________. A. France B. Mexico C. New Zealand D. The United States

Mexico

quiz 4: For questions 12 through 14, consider a situation in which four candidates (Doug, Kelly, Matt, and Raphael) are potentially running for a vacant Senate seat. Voter preferences are summarized by the table below. Assume all people vote sincerely/truthfully (i.e., in-line with actual preferences). https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing If there were a two way election between only Doug and Raphael, which voter types would vote for Doug? A. Only types [i] and [ii]. B. Only types [i], [ii], [iii], [iv], [v], [vi], and [vii]. C. Only types [i], [ii], [iii], [iv], [v], [vi], [vii], [viii], and [ix]. D. Only types [i], [ii], [iii], [iv], [v], [vi], [vii], [viii], and [x].

Only types [i], [ii], [iii], [iv], [v], [vi], and [vii].

Consider the following two statements: (I) "Phil Mickelson was the last player to win an event on the PGA Tour as an amateur, when he won the Northern Telecom Open by one stroke on Sunday, 1/13/1991," and (II) "Phil Mickelson won his 'PGA Tour Champions' tournament debut by winning the Ozarks National tournament by four strokes on Wednesday, 8/26/20." Statement (I) is a ____________ statement, and Statement (II) is a ____________ statement. A. Positive; Positive. B. Positive; Normative. C. Normative; Positive. D. Normative; Normative.

Positive; Positive.

Consider the payroll taxes imposed to fund Social Security and Medicare. Under these taxes, the first $137,700 of income earned is taxed at a marginal rate of 15.3% and income above this level is taxed at 2.9%. It follows that over all income ranges, these payroll taxes are a A. Discriminatory tax. B. Progressive tax. C. Proportional tax. D. Regressive tax.

Regressive tax

quiz 1: Answer Questions 15 through 17 based upon the information conveyed in the following graph (which illustrates the Marginal Benefits and two different levels of Marginal Costs of an activity for a decision maker): https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Again suppose Marginal Benefits are given by MB and Marginal Costs are given by MC1. If the decision maker increased Q from Q=900 to Q=950, then A. Total Costs would increase, but Total Benefits and Total Economic Surplus would both decrease. B. Total Costs and Total Benefits would both increase, but Total Economic Surplus would decrease. C. Total Costs, Total Benefits, and Total Economic Surplus would all increase. D. Total Costs, Total Benefits, and Total Economic Surplus would all decrease

Total Costs and Total Benefits would both increase, but Total Economic Surplus would decrease.

quiz 1: For questions 19 and 20, consider the following scenario. Liam and Noel produce two goods, mirrors and razor blades. The productive ability of each worker for each task is summarized in the table below (which states the number of units of each good that the worker could produce in a full day). Note, Liam's output of mirrors is not specified, but is rather given in generic terms as "Y" units. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing For which of the following values of "Y" does Liam possess BOTH a Comparative Advantage in mirror production and an Absolute Advantage in mirror production? A. Y = 8 B. Y = 16 C. Y = 24 D. None of the above answers are correct, since there are no values of "Y" for which Liam possesses BOTH a Comparative Advantage in mirror production and an Absolute Advantage in mirror production.

Y = 24

Chad's income is higher than Donna's income. Two of the notable differences between their jobs are that Chad must work outside year round (even when it is very hot in the summer and very cold in the winter) and Chad runs a greater risk of being injured (or even killed) on the job. These observations would suggest that the difference in incomes between the two individuals is at least partly A. due to gender discrimination. B. a consequence of Donna being paid a wage rate below the minimum wage. C. a compensating differential. D. an indication of the Labor Theory of Value.

a compensating differential.

Over the 844 months from January 1948 through April 2018, the inflation rate in the U.S. took on A. a median value of 2.88% and a mean value of 3.52%. B. a median value of 4.95% and a mean value of 5.24%. C. a median value of 6.72% and a mean value of 8.41%. D. a median value of 9.73% and a mean value of 8.96%.

a median value of 2.88% and a mean value of 3.52%.

Debbie recently spent $425 at the KSU bookstore on textbooks for her fall semester classes. She was able to use the money to acquire these books since money serves as A. an Invisible Hand. B. a store of value. C. a medium of exchange. D. a unit of account.

a medium of exchange

quiz 2: For questions 11 and 12 refer to the graph below, which illustrates Total Social Surplus in the market for Good Z as a function of the level of production/consumption of the good. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing If 1,025 units of Good Z were produced/consumed, there would be A. zero Deadweight Loss. B. a positive Deadweight Loss due to "too little production/consumption." C. a positive Deadweight Loss due to "too much production/consumption." D. a negative Deadweight Loss due to "too much production/consumption."

a positive Deadweight Loss due to "too much production/consumption."

Production and consumption of "Good X" generates a negative externality, while production and consumption of "Good Y" generates a positive externality. If each good was simply provided in a free market, then in the market for "Good X" there would be ______________ and in the market for "Good Y" there would be ____________. A. a negative Deadweight Loss due to too little trade; a positive Deadweight Loss due to too much trade. B. a positive Deadweight Loss due to too little trade; a positive Deadweight Loss due to too much trade. C. a negative Deadweight Loss due to too much trade; a positive Deadweight Loss due to too little trade. D. a positive Deadweight Loss due to too much trade; a positive Deadweight Loss due to too little trade.

a positive Deadweight Loss due to too much trade; a positive Deadweight Loss due to too little trade

. Rafael Nadal lost to Novak Djokovic in the finals of the 2019 Australian Open tennis tournament in straight sets. Around the same time an earthquake in Kyrgyzstan killed 138 people. If Rafael Nadal was more upset about losing the tennis match than about the loss of life from the earthquake, it would seemingly suggest that he is A. a sadist. B. a masochist. C. an irrational individual. D. a self-interested individual.

a self-interested individual.

Under the current U.S. Federal Income Tax (as of 2015), the "Top 1% of wage earners" pay A. virtually no taxes, due to all of the loopholes in the current tax code. B. about 19.05% of all taxes collected, an amount slightly less than their share of total adjusted gross income (which is 20.65% of total adjusted gross income). C. about 39.04% of all taxes collected, an amount almost as large as the 40.42% of all taxes collected that is paid by the "bottom 95% of wage earners." D. about 62.36% of all taxes collected, an amount over three times larger than their share of total adjusted gross income (which is 20.65% of total adjusted gross income).

about 39.04% of all taxes collected, an amount almost as large as the 40.42% of all taxes collected that is paid by the "bottom 95% of wage earners."

Consider the following two statements. Statement 1: "The U.S. should NOT restrict employers from outsourcing work to foreign countries." Statement 2: "Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value." Most economists would A. agree with both Statement 1 and Statement 2. B. agree with Statement 1, but disagree with Statement 2. C. disagree with Statement 1, but agree with Statement 2. D. disagree with both Statement 1 and Statement 2.

agree with both Statement 1 and Statement 2.

quiz 2: For questions 15 through 18, refer to the graph below, which illustrates supply and demand for "good Y" in 2020. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In equilibrium, Total Consumers' Surplus is equal to __________________ and Total Producers' Surplus is equal to __________________. A. areas a+b+f; areas c+d+g. B. areas a+b+f; areas c+d+e+g+h. C. areas a+b+c+d+f+g; areas e+h. D. areas a+b+c+d+e+f+g+h; areas e+h.

areas a+b+f; areas c+d+g.

One of the three primary types of "economic incentives" is "moral suasion," which can be described as A. attempts to convince individuals to behave in a certain manner because doing so is "the right thing to do." B. the use or threat of force or incarceration to obtain compliance. C. attempts to convince individuals to behave in a certain manner through "public ridicule." D. the use of monetary rewards or direct increases in consumption which result from engaging in an activity.

attempts to convince individuals to behave in a certain manner because doing so is "the right thing to do."

"Voluntary Trade" generally makes buyers ______________ and makes sellers ______________. A. better off; worse off. B. worse off; better off. C. worse off; worse off. D. better off; better off.

better off; better off.

. Examining how average Real (i.e., inflation adjusted) Household Incomes have changed over time in the U.S., between 2006 and 2016, households in the "bottom 20%" of the income distribution realized a __________ in average income, households in the "middle 20%" of the income distribution realized a __________ in average income, and households in the "top 20%" of the income distribution realized a __________ in average income. A. decrease; decrease; increase. B. decrease; increase; increase. C. increase; decrease; increase. D. increase; increase; increase.

decrease; increase; increase.

Based upon the World Bank's poverty threshold of income of $1.90 per day, between 1981 and 2015 the global poverty rate A. increased drastically from 12.7% up to 51.2%. B. increased moderately from 36.5% up to 42.8%. C. decreased slightly from 22.1% down to 19.0%. D. decreased drastically from 44.3% down to 9.6%.

decreased drastically from 44.3% down to 9.6%

"Crowding Out" refers to A. decreases in private spending that occur following increases in government spending (thereby reducing the stimulative effectiveness of Fiscal Policy). B. the reduced incentive for people to earn income when welfare benefits become more generous. C. the reduced incentive for people to earn income when marginal tax rates are relatively high. D. a public good becoming "rival in consumption" when a large number of people consume it (i.e., "congestion" from a "crowd" of consumers causes the otherwise non-rival good to become rival).

decreases in private spending that occur following increases in government spending (thereby reducing the stimulative effectiveness of Fiscal Policy).

Consider the market for "Good X." Suppose that "Good X" is a normal good. If the income of consumers of "Good X" were to increase, then A. demand for "Good X" would increase, decreasing equilibrium price and increasing equilibrium quantity. B. demand for "Good X" would increase, increasing both equilibrium price and equilibrium quantity. C. demand for "Good X" would decrease, decreasing both equilibrium price and equilibrium quantity. D. demand for "Good X" would decrease, increasing equilibrium price and decreasing equilibrium quantity.

demand for "Good X" would increase, increasing both equilibrium price and equilibrium quantity.

As depicted in the Expanded Circular Flow Diagram, government collects taxes from domestic households, plus A. domestic firms. B. foreign firms. C. domestic firms and foreign firms. D. foreign households, domestic firms, and foreign firms.

domestic firms.

quiz 2: For questions 15 through 18, refer to the graph below, which illustrates supply and demand for "good Y" in 2020. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing In this market there would be ____________ at a price of $30.00. A. excess demand B. excess supply C. both excess demand and excess supply D. neither excess demand nor excess supply

excess demand

The "Stabilization Function of Government" refers to A. government policies aimed at minimizing fluctuations in overall macroeconomic activity. B. government policies aimed at altering the final levels of consumption of goods/services across consumers/households, usually with the intention of realizing a "fairer" apportionment of consumption/income/wealth. C. government production of goods or regulation of business, to ensure that the "right mix" of products are produced, each in the "ideal quantity" and at the "ideal quality." D. government policies which redistribute incomes from "the rich" to "the poor."

government policies aimed at minimizing fluctuations in overall macroeconomic activity.

Consider the level of "economic freedom" in the three countries of Australia, Singapore, and Spain. According to the results of the "Economic Freedom of the World" study, of these three countries, the amount of economic freedom is A. greatest in Australia and least in Singapore. B. greatest in Australia and least in Spain. C. greatest in Singapore and least in Australia. D. greatest in Singapore and least in Spain.

greatest in Singapore and least in Spain.

Economics is the social science that studies A. the allocation and transfer of power in decision-making, systems of governance, and the effects of public policy. B. how people make decisions in the face of scarcity and the resulting impact of such decisions on both society as a whole and on the individual members therein. C. the human mind and its functions, especially those affecting behavior in a given context. D. the development and evolution of human societies and cultures.

how people make decisions in the face of scarcity and the resulting impact of such decisions on both society as a whole and on the individual members therein

Economic Development is defined as A. improvements over time in a society's quality of life and living standards. B. sustained increases over time in a society's value of Real GDP. C. an outward shift of a society's Production Possibilities Frontier. D. the annual percentage change in the value of Real GDP for a society.

improvements over time in a society's quality of life and living standards

Between 1915 and 2015, the value of Real GDP Per Capita (measured in 2009 dollars) in the United States A. decreased from $27,451 to $25,672. B. increased from $26,783 to $36,745. C. increased from $15,557 to $43,886. D. increased from $6,113 to $50,820.

increased from $6,113 to $50,820.

Between 1967 and 2016, for the U.S. the value of the Gini Coefficient ___________ while the value of Real Median Household Income ___________. A. increased from .397 to .481; increased from $44,895 to $59,039. B. increased from 1.142 to 1.287; increased from $38,493 to $57,886. C. increased from .402 to .625; decreased from $50,984 to $42,983. D. decreased from .502 to .447; increased from $36,841 to $60,672.

increased from .397 to .481; increased from $44,895 to $59,039.

quiz 1: For questions 19 and 20, consider the following scenario. Liam and Noel produce two goods, mirrors and razor blades. The productive ability of each worker for each task is summarized in the table below (which states the number of units of each good that the worker could produce in a full day). Note, Liam's output of mirrors is not specified, but is rather given in generic terms as "Y" units. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing 19. Noel's Opportunity Cost for producing a unit of mirrors ____________________. A. is equal to 0.5 = ½ a unit of razor blades. B. is equal to 2 units of razor blades. C. is equal to 800 units of razor blades. D. cannot be determined without knowing the value of Y

is equal to 2 units of razor blades.

New Soviet Man refers to a person that A. is motivated primarily by selfless benevolence. B. is rational and self-interested. C. is irrational and self-interested. D. lives in a world without scarcity

is motivated primarily by selfless benevolence

The central bank of the United Kingdom A. is the Bank of England, which was founded in 1694. B. is the Royal Bank of Scotland, which was founded in 1727. C. is the Bank of Parliament, which was founded in 1981. D. is the European Central Bank, which was founded in 1998.

is the Bank of England, which was founded in 1694.

quiz 1: For Questions 11 and 12, consider a society facing the Production Possibilities Frontier illustrated below which is "bowed-out" from the origin (in that it becomes steeper as one moves "down" the curve): https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Focusing attention on output combinations "B," "C," and "D," the opportunity cost of producing an additional car is ____________________. A. exactly equal at all three combinations B. lowest at "B" and highest at "D" C. lowest at "D" and highest at "B" D. lowest at "C" (but the graph does not provide enough information to make a comparison of the value of the opportunity cost at combinations "B" and "D").

lowest at "B" and highest at "D"

The efficient level of trade is defined as the level of trade which A. minimizes the difference between Total Consumers' Surplus and Total Producers' Surplus. B. minimizes Total Social Surplus. C. maximizes Total Social Surplus. D. maximizes Deadweight Loss.

maximizes Total Social Surplus.

Focusing on government spending as a percentage of GDP in the U.S., we observed that: (i) between 1820 and 1917 the value ranged between 3.12% and 14.83% (with a mean of 5.94%) and (ii) between 1967 and 2007 the value ranged between 30.57% and 38.67% (with a mean of 35.48%). Between 2008 and 2020, the value of government spending as a percentage of GDP in the U.S. ranged from a A. minimum of 9.46% to a maximum of 14.12% (with a mean of 11.52%). B. minimum of 20.86% to a maximum of 29.96% (with a mean of 26.04%). C. minimum of 38.88% to a maximum of 45.13% (with a mean of 40.78%). D. minimum of 51.03% to a maximum of 64.19% (with a mean of 58.37%).

minimum of 38.88% to a maximum of 45.13% (with a mean of 40.78%).

quiz 4: For questions 16 through 18, consider a market with Supply and Demand as illustrated below. Suppose that the "free market outcome with no tax imposed" is efficient. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Imposing a per unit tax of $2.50 on buyers in this market would generate tax revenue of A. less than $70,000. B. exactly $70,000. C. more than $70,000 but less than $105,875. D. exactly $105,875.

more than $70,000 but less than $105,875.

Socialism is defined as an economic system in which the means of production are A. privately owned and operated for a profit. B. collectively owned by all people in society (without intervention by a government or state). C. owned by the government. D. owned by an aristocratic nobility.

owned by the government.

quiz 4: For questions 16 through 18, consider a market with Supply and Demand as illustrated below. Suppose that the "free market outcome with no tax imposed" is efficient. https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Consider a per unit tax of $4.00 imposed on sellers. The A. resulting Deadweight Loss from this tax is equal to "areas (b)+(d)." B. incidence of this tax for buyers is equal to zero. C. incidence of this tax for sellers is equal to "areas (c)+(d)+(e)." D. More than one (perhaps all) of the above answers is correct.

resulting Deadweight Loss from this tax is equal to "areas (b)+(d)."

Robbie is a ventriloquist. Jade stole Robbie's puppet (named Rex) and tore off its arms, legs, and head (for no reason - she's just a jerk sometimes). Robbie demands that Jade buys him a new puppet to replace the one which she destroyed. By making this demand, Robbie is claiming his ____________ in regards to his puppet Rex. A. right to transfer B. right to indicative planning C. right to restitution D. right to control

right to restitution

The arguments made by John Maynard Keynes suggest that during an economic downturn, the government should A. increase the money supply, to provide a short term stimulus to the macro-economy. B. decrease the money supply, in order to avoid inflation. C. run a budget deficit, in order to stimulate the economy by replacing missing private spending with government spending. D. run a budget surplus, so that we do not accumulate a tremendous amount of debt that will ultimately burden future generations.

run a budget deficit, in order to stimulate the economy by replacing missing private spending with government spending

A group of teachers at a middle school is trying to decide where to take their students on a field trip. They are considering three options: an art gallery, an amusement park, and an aquarium. When voting between only the art gallery and the amusement park, the art gallery receives more votes. When voting between only the aquarium and the art gallery, the aquarium receives more votes. When voting between only the amusement park and the aquarium, the amusement park receives more votes. These outcomes illustrate A. the Economic Calculation Problem. B. the Coasian solution to the problem of externalities. C. the Condorcet Paradox. D. Rent Seeking.

the Condorcet Paradox.

quiz 1: Answer Questions 15 through 17 based upon the information conveyed in the following graph (which illustrates the Marginal Benefits and two different levels of Marginal Costs of an activity for a decision maker): https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing Finally suppose that Marginal Costs change from MC1 to MC2 (with Marginal Benefits still given by MB). It follows that as a result of this change in Marginal Costs, A. the optimal choice of Q would increase, consistent with the Incentive Principle. B. the optimal choice of Q would increase, contradicting the Incentive Principle. C. the optimal choice of Q would decrease, consistent with the Incentive Principle. D. the optimal choice of Q would decrease, contradicting the Incentive Principle.

the optimal choice of Q would increase, consistent with the Incentive Principle.

Del Taco is Danny's favorite restaurant. After recently joining their frequent diner club for free, he got a coupon by e-mail which can be redeemed for either a free chicken taco or a free fountain drink. When he went to Del Taco last night, he used the coupon to get a free fountain drink. His Opportunity Cost of the fountain drink was A. zero, since he received the coupon for free. B. the value he places on a chicken taco. C. the regular menu price of a fountain drink. D. the maximum amount of money he would have been willing to pay for both a fountain drink and a chicken taco (since the coupon gave him the option to get either).

the value he places on a chicken taco.

Consider a situation in which Al gains $6, Betty gains $10, and Chad loses $18. Based upon this information alone, it appears as if this is a _________ outcome in a _________ environment. A. lose-lose; negative-sum. B. win-lose; positive-sum. C. win-lose; negative-sum. D. win-win; positive-sum.

win-lose; negative-sum.

quiz 3: For questions 5 and 6, consider a country with consumption expenditures, private investment expenditures, government purchases, exports, and imports (each measured in millions of Euros), plus population as summarized in the table below: https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing For this country Net Exports are equal to ________. A. € 87,200 million (i.e., € 87.2 billion) B. € 7,354 million (i.e., € 7.354 billion) C. € 500 million D. € - 500 million (i.e., negative 500 million Euros)

€ - 500 million (i.e., negative 500 million Euros)

quiz 3: For questions 5 and 6, consider a country with consumption expenditures, private investment expenditures, government purchases, exports, and imports (each measured in millions of Euros), plus population as summarized in the table below: https://docs.google.com/document/d/1AbAdgUNmWMUzcMm8mQVhNhzB1OO-exRmpgwOsq1Vlqg/edit?usp=sharing For this country, Per Capita Gross Domestic Product is approximately equal to ________. A. € 23,682 B. € 29,897 C. € 30,241 D. € 32,605

€ 29,897