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96 Cards in this Set
- Front
- Back
Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. It is worth zero otherwise. If youbelieve OSU has a 70% chance of winning, you should be willing to… |
Buy at less than $7 and/or sell at more than $7 |
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Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. It is worth zero otherwise. If youbelieve OSU has a 30% chance of winning, you should be willing to… |
Buy at less than $3 and/or sell at more than $3 |
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Consider a futures contract that is worth $20 ifOSU beats Nebraska in men’s basketball. It is worth zero otherwise. If youbelieve OSU has a 70% chance of winning, you believe the contract’s value is |
$14 |
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Consider a futures contract that is worth $50 ifOSU beats Nebraska in men’s basketball. It is worth zero otherwise. If youbelieve OSU has a 50% chance of winning, you believe the contract’s value is |
$25.00 |
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Consider a futures contractthat is worth $10 if OSU beats Nebraska in men’s basketball. If someone iswilling to sell it for $4 that implies |
They believe OSU has less than a 40% chance of winning |
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Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. If you buy a contract for $4 and thensell a contract for $7, and OSU wins, what are your profits? |
You earn $3 |
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Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. If you buy a contract for $4 and thensell a contract for $6, and OSU loses, what are your profits? |
You earn $2 |
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Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. If you buy a contract for $4 and thatis the only transaction you make, and OSU wins, what are your profits? |
You earn $6 |
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Consider a futures contract that is worth $10 ifOSU beats Nebraska in men’s basketball. If you sell a contract for $8 and thatis the only transaction you make, and OSU wins, what are your profits? |
You lose $2 |
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If someone sells a July 2017 Wheat futurescontract, hoping to buy the same contract back at a lower price later, they are |
Going Short |
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If someone sells a July 2017 Wheat futurescontract, believing prices will rise, they are |
There is no term for this, or, this strategy does not make sense |
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True orFalse? In order for someone to sell a July 2017 Wheat futures contract theymust first buy 5,000 bushels of wheat |
False |
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True orFalse? In order for someone to buy a July 2017 Wheat futures contract theymust first eventually take ownership of 5,000 bushels of wheat. |
False |
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What kind of wheat is traded in Kansas CityBoard of Trade futures? |
Hard Red Winter Wheat |
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How much is a bushel? |
9.3 Gal |
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Of the intellectual contributors to economicsbelow, which is the oldest (that is, who was the first to live)? |
Quesnay |
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1. Which of the following individual’s contributionwas to write the Wealth of Nations? |
Adam South |
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1. Which of the following individual’s contributionwas to suggest changing ‘political economy’ to ‘economics’? |
Alfred Marshall |
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If an economist argues that we should privatizefish in the ocean by giving fishermen quotas on the total amount they may catchin a year, she is practicing __________ economics. |
Normative |
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When the ancient Greek’s used their version ofthe word ‘economics’, which was Oikonomia, it referred to |
The management of household estate |
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Dr. Norwood’s definition of economics is muchsimpler and shorter than the typical definition. |
This is false, Dr. Norwood’s is longer and more complex |
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When Louis XV, King of France, followed theadvice of his Les Économists, itbenefitted the economy for a while but eventually led to food problems. Whatwas this advice that he followed? |
Allow free trade and flexible prices. |
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According to an A&E documentary, Adam Smith is the 3rd most influential person of the second millennial. |
False, he was the 20th most important person |
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Why did Uzbekistans leave their stoves running24/7 during the 1980s? |
Because natural gas was free and matches were scarce |
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When economists argued that slavery should beended, Thomas Carlyle deemed economics to be |
Dismal Science |
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Economics, according to Dr.Norwood, has a particular interest in making self-interest |
Harmonious with social interest |
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Economics, according to Dr. Norwood, isconcerned only with monetary prosperity. |
False |
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People generally have unlimited wants |
True |
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Economists generally allow individuals to decidewhat is best for themselves when it comes to their own happiness |
True |
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About two centuries ago the British learned theonly way to force ship captains to keep prisoners being transported toAustralia alive during the voyage was to design strict regulations and have asoldier aboard the ship. |
False |
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What famous economist is on British currency,according to the show Todd Margaret? |
Adam Smith |
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To encourage sustainable fishing, we triedlimiting the days in which people could catch fish, but this didn’t workbecause |
Fishermen invested in better equipment that would allow them toincrease their catch of fish during those days. |
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What policy finally resulted in sustainablefishing? |
Using catch shares, where individual fisherman are given the right tocatch only a certain number (or a certain proportion) of the fish population. |
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What is the term for a situation where aresource is shared, but some individuals exploit the resource at the expense ofeveryone? |
Tragedy of the commons |
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Which of the following examples suffer from theTragedy of the Commons? |
a. Aquifer use in the Midwestern U.S.b. Public bathrooms in New Yorkc. Grazing lands for reindeer in Finlandd. Soil erosion in the U.S.e. Both a and bf. Both c and d |
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Why isn’t soil erosion on privately owned farmsin the U.S. considered a Tragedy of the Commons? |
a. Because some soil erosion is unavoidable, so itis not a tragedy we can helpb. Because the soil is owned by the farmerc. Because the farmer, like society, pays the costof soil erosiond. a, b, and ce. both b and c |
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The case of reindeer grazing lands in Finlandprove that you cannot expect large groups of people to be able to properlycoordinate the use of a shared resource |
False |
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If Ogallala aquifer users in the Midwestern U.S.were to adopt Finland reindeer farmers’ approach to share resources, they wouldMeetand agree on how much water |
Meet and agree on how much water each farmer extracts in a year |
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Looking back at the long arc of history, whenworld population rises per person wealth |
Falls |
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Which regions have been particularly stellar ingenerating prosperity throughout the last two centuries? |
Western Europe |
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In the book AHistory of World Agriculture, Mazoyer and Roudart credit the rise in humanpopulations to three main agricultural events |
1) Neolithic agriculture (2) irrigation agriculture and (3) motorized,mechanized, and chemicalized agriculture |
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How many of the following statements are true:(1) the U.S. produces more nutrients per capita for almost every nutrientcompared to a century ago (2) the number of people living in extreme poverty isrising (3) the number of people not living in extreme poverty is rising |
2 |
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In class we discussed four cases where nationshad trouble feeding itself: ancient Athens, 1950s China, recent North Korea,and contemporary Venezuela. How many of these three cases was the problempolitical in nature? |
3 |
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What is the best way to measure agriculturalproductivity? |
Amount of food produced per hour of labor |
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The case of North and South Korea demonstratesthat two countries can have similar food problems despite drastically differentpolitical systems. |
False |
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Why does North Korea allow its citizens to watchGone With the Wind? |
To inspire them to preserve during times of food shortages |
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In warfare, even if one country is the clearvictor, damage is done to both countries. This makes warfare a |
Negative Sum Game |
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If Paul robs Peter,stealing $10, that is a |
Zero-sum game |
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If Paul fears Peter will attempt to rob him, andPeter thus pays thugs to protect him, that is a |
Negative-Sum Game |
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Which of the following items is necessary forpeople and businesses to specialize? |
Trade |
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Why is specialization so important for foodproduction? |
It increases efficiency |
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Decentralization is important because ______ isdispersed throughout an economy |
Information |
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Why are prices an important part ofdecentralized decision making |
They are good communicators of information |
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Ancient Athens was unique in that it requiredits politicians to also be businesspeople |
False |
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What is the term referring to the process bywhich immigration, trade, and technology eliminates jobs in one sector whilecreating new jobs in other sectors? |
Creative Destruction |
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During the age of Voltaire (18thCentury) both England and France had the utmost respect for “the commerciallife and the diversity of religion”. |
False |
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In North Korea today |
Citizens rely on market exchanges for food |
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The world does not produce enough calories tofeed the world population |
False |
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In the U.S. about _____ of households haveserious food security problems. |
5% |
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What is the major cause of the Irish famine in1845-1852? |
Landowners exporting much of the food its tenants produced |
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Why are much of Mongoliangrasslands being destroyed? |
Excessive grazing of cashmere goats |
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In the U.S., soil erosion |
Still occurs but the rate of erosion is falling |
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Why is the rate of soil erosion falling? |
More awareness and concernb. Better technologiesc. Less rainfalld. Both a and be. a, b, and c |
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No society has been able to feed itself without privateproperty and markets. |
False |
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What is the main cause of the Great Enrichment? |
Cultural Changes |
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Which of the following cultural change isassociated with the Great Enrichment? |
Belief in equality of people |
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Which of the following best explains the currentfood provision problems in Venezuela? |
Price controls and confiscation of farms |
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How many items in the following list played arole in creating food shortages in Venezuela? (1) High oil prices (2) Death ofHugo Chavez (3) New constitution that does not address food (4) Price controls(5) Confiscation of farms (6) import tariff on dairy products |
2 |
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How did price controlscreate food shortages in Venezuela |
Because producers could only sell at low prices they had no incentiveto produce foodBecause |
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If the Bolivarian Revolution began by HugoChavez resulted in the policies causing the current food shortages, what wasthe reason for the initial support of the Revolution, and why do many peoplestill support it? |
Before Hugo Chavez a large portion of the poor were marginalized |
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One obstacle to food provision in Venezuela isthat their constitution does not address food issues? |
False |
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In response to food provision problems inVenezuela the current president urged households to |
Begin producing their own eggs by raising chickens |
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The Parable of the Magic Island is intended todemonstrate that what is akin tomagic, in that you can acquire a permanent increase in wealth by paying only atemporary economic adjustment cost? |
Technological improvments |
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The Parable of the Magic Island is intended todemonstrate that what is akin tomagic, in that you can acquire a permanent increase in wealth by paying only atemporary economic adjustment cost? |
Trade |
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Which of the following pose similar benefits andcosts as trade with other nations? |
Technological improvements |
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Has trade with China harmed any particularsegment of Americans more than others? |
low skill level and uneducated workers are harmed |
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If the price of good A is $100 and the price ofgood B is $20, what is the opportunity cost of good A in terms of good B? |
5 units of good B |
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If the price of good A is $500 and the price ofgood B is $400, what is the opportunity cost of good B in terms of good A? |
4/5 units of good A |
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The term ‘PPF’ stands for |
Production possibilities frontier |
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A country has a comparative advantage in theproduction of sugar, compared to another country, if it can |
Produce the sugar at a lower opportunity cost |
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Supposethat, initially, the US and EU do not engage in trade. In autarky, the U.S.produces and consumes 1,000 Meat and 2,000 Veggies, while the EU produces andconsumes 1,500 Meat and 2,000 Veggies. Once they engage in trade, the USproduces 4,500 Veggies and no Meat, while the EU produces no Veggies and 3,000Meat. Will both regions be better off if the U.S. and EU traded 2,000Veggies for 1,000 Meat? (Note: If I don’t say a country loses or gains any Meator Veggies you may assume they have the same amount of the good.) |
Yes, the U.S. gains 500 veggies and the EU gains a certain amount ofveggies |
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Two countries, trading two goods, are said togain from trade if … |
They both get more of at least one good without giving up any units ofthe other good |
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Being able to trade allows regions to producelarge amounts of a crop, and that allows them to increase their productivity by… ? |
a. Specializing and honing their skillsb. Afford new technologies |
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The first U.S. patent was awarded to SamuelHopkins in 1790 for a new way of acquiring potash (a fertilizer and ingredientin soap production). |
True |
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There needs to be some differences between twocountries, like different climates or resources, before they can gain fromtrade. |
F |
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In reality, exports from a country are alwaysless than its imports |
False |
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Even though many of an iPhone’s components comefrom many different countries, our trade statistics count the iPhone as |
CHinese Export |
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The Jeep Patriot got its name because it is carwith the most American made parts. |
False |
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Which of the following is NOT an objective ofthe Food Sovereignty movement? |
A country’s right to export food to any region without tariffs |
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What destroyed India’sartisan cooking oil industry |
New sanitation rules by the World Trade Organization |
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Why is the World Trade Organization (WTO) sometimesseen as neo-colonization by developing countries? |
Because the rules set by the WTO seem similar to laws set by westernconquering governments in the past |
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Why is the World Trade Organization (WTO)sometimes seen as neo-colonization by developing countries? |
Because the rules set by the WTO meant to encourage trade reduce acountry’s ability to pass their own laws about food |
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Why is there a Food Sovereignty movement innortheastern states like Maine and Vermont? |
So that small farmers can sell directly to consumers without having toabide by food health laws |
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Why does the U.S. both import and export beef? |
Because they aren’t really exporting and importing the same type ofbeef |
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What type of beef does the U.S. import, comparedto the beef it exports? |
Leaner Beef |
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What would happen to the price of wheat if theU.S. no longer traded with other countries? |
It would fall |