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258 Cards in this Set
- Front
- Back
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On average drugs take far longer to reach the market in the U.S. than they do in Europe.
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True
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As we engage in more and more of an activity our marginal ___________ rise and marginal __________ decline.
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costs benefits
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We experience scarcity because we live in a world of limited _________ and unlimited __________.
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resources wants
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The FDA faces a difficult trade-off - making either a Type I or Type II error when releasing a drug. A Type I error is made when a drug shouldn't have been released but was and a Type II error is made when a drug should have been released but wasn't.
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True
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Heyne uses traffic patterns as an example of what economic concept?
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Social Cooperation
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The basis of any system not just an economic system is an established set of _____________________.
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Rules of the Game
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Until 1998 the NFC winning the Super Bowl and the Dow Jones Industrial Average doing well for the year coincided 100% of the time. Erroneously assuming that the Super Bowl winner impacted the Dow was an error in _______________.
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causation/correlation
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The Theory of Economics according to John Maynard Keynes is all but which of the following.
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Is a body of settled conclusions immediately applicable to policy.
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Your authors stress that economics studies the consequences of
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choices made by individuals.
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Rich and poor people have which of the following in common?
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All of the above.
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Which among the following is an example of "economizing" behavior?
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All of the above.
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According to your text the so-called "Superbowl Effect"
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is an example of a spurious correlation.
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The text maintains that many people don't understand how economic systems work because they
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tend to look at them only when they are not performing adequately.
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The text claims that disagreements about the relative efficiency of particular projects are usually disagreements about
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the relative value of particular goods to different people.
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Harry and Gus fish the same lake together from the same boat. Each morning Harry typically catches either 20 bluegills or 5 walleyes (depending on how deep he fishes) while Gus typically catches either 20 bluegills or 2 walleyes (depending on how deep he fishes). If they wish to fill their boat with the largest combination of bluegills and walleyes tomorrow morning
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Harry should fish only for walleyes and Gus should fish only for bluegills.
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Is cutting down a tree in two hours with an ax more efficient than cutting it down in ten minutes with a gasoline-powered chain saw?
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It could be if the person cutting down the tree places a high enough value on the exercise.
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What is the more efficient choice: a UAF economics professor sending her son to UAF where he will get free tuition or to a private college in Florida with tuition of $7000 per semester?
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It depends on the economics professor's evaluation of costs and benefits for her son.
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Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day while Ben can produce only 3 Ms or 3 Ss in a day. Which statement below is true?
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Ann is the most efficient producer of material goods.
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Your authors argue that "wealth = material things"
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is a myth.
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____________ in the economic way of thinking is whatever people value.
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Wealth
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The economic way of thinking focuses on 1) actions 2) interactions and 3) ___________________ whether they are intended or unintended ones.
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consequences
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In the 1990's the countries of central and eastern Europe that were trying to move from centrally planned and bureaucratically controlled systems of production to decentralized market-coordinated systems faced no greater obstacle than the absence of clear and accepted rules of the new game they were attempting to play.
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True
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To ________________ means to use resources in a way that extracts from them the most of whatever the economizer wants.
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economize
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The fundamental presupposition of economics states that: All social phenomena emerge from the actions and interactions of individuals who are choosing in response to expected additional ________ and _________ to themselves.
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benefits costs
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When Mother Teresa accepted the Nobel Prize for Peace in October 1979 and decided to use the $190000 award to constuct a leprosarium she was
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acting in her own self interest; economizing; choosing in response to expected additional benefits and costs to herself.
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Some markets like stock markets and commodity markets are "__________ ________________" which means that the bids and offers of many prospective buyers and seller have been brought together to create a single price for a fairly uniform good over a wide geographic area.
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well organized
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A decision or plan of action is said to be economically___________________ if the chooser judges that the expected additional benefits will exceed the expected additional costs.
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efficient
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Voluntary exchange is never an exchange of equal ___________. If it were it would not occur.
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value
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Any choice implies a sacrifice an ___________________ _____________.
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opportunity cost
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"I Pencil" is a story illustrating:
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All of the above
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Proofiness is the art of using bogus ___________ arguments to prove something that you know in your heart is true — even when it’s not.
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mathematical
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Fill in the blank: Other things constant the growing availability of college degrees being offered through online "virtual universities" would tend to __________ the price elasticity of demand for more traditional college degree programs.
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increase
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"I'm telling you instead of charging $50 each they could give away those opera tickets for free and I myself still wouldn't go -- ever!" What can we say about this person's demand for opera tickets?
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His price elasticity is zero which means he doesn't have a demand for opera tickets.
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Suppose a 25% off sale on post-holiday merchandise creates a 50% increase in post-holiday sales. The price elasticity of demand for that merchandise is:
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2
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Unless demand is changing price and quantity will
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move in opposite directions.
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The demand for a good is inelastic if when its price rises
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total dollar expenditure on the good increases.
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The amount by which people will increase or decrease their purchases when prices change
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tends to be greater over longer periods of time because it takes time to invent and to discover substitutes.
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Skis and snowboards are close substitute goods. Fill in the blanks: A __________ in the price of snowboards would tend to __________ the demand for __________ .
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rise; increase; skis
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The economic way of thinking suggests that all but which one of the following could become an attractive substitute for insulin if the price sky-rocketed:
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a large coke
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What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
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The cost will rise because it will become more expensive to grow vegetables.
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If you decide to go to a movie this evening rather than write a letter to your grandmother you thereby demonstrate
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none of the above.
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The price paid by a tenant to rent an apartment most closely reflects the cost to the
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landlord of not renting to someone else.
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Real estate suitable for condominium development is also suitable for single-family home development. Therefore a rise in the price of condominiums relative to single-family homes tends to
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increase the cost of building new single-family homes.
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Competitive offers to buy and sell resources establish money prices that reflect relative scarcities
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when resources are privately owned.
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Suppose a university refunds students 75% of their tuition if they drop out before the third week of class 50% if they drop out between their third and fifth week 25% if they drop out between their sixth and eighth week and 0% after that. Flint paid $1000 tuition and is in his fourth week of class. What's his sunk cost?
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500
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The cost to a cab driver of taking the day off increases when
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it rains.
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Fill in the blanks: __________ marginal costs of production would tend to __________ a good's __________.
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Lower; increase; supply curve
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Land that can be used to grow commercial Christmas trees can also produce pulpwood. Therefore an increase in the expected market price of Christmas trees tends to
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increase the cost of producing pulpwood.
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The monthly mortgage payments that a homeowner makes are
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marginal costs of continuing to own and occupy the house.
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Opportunity-cost theory implies that if more people learned how to repair their own automobiles the wages of automotive mechanics would
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decline as the highest-cost mechanics left the business.
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In the economist's way of thinking _____________ ______________ is a piece of history for it represents no opportunity for future choice. For example if you decide to walk out of a movie because it is really lame you will not get your money's worth if you stay and watch the whole thing.
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sunk cost
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_____________________ means "on or near the edge."
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marginal
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A broom can be a substitute for water.
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True
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Demand is a schedule or curve. Quantity___________________ is a specific amount at a specific price.
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demanded
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Price elasticity of demand equals the percentage change in quantity demanded divided by the percentage change in __________________.
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price
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Only _______________ or decisions have costs.
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actions
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What will be the principal and most immediate effect on the supply (schedule or curve) or demand (schedule or curve) for raw cotton grown in the United States of a decline in the price of synthetic textiles?
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Decrease in demand.
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The market process will likely fail to fully coordinate supply and demand if transaction costs are
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significant.
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If the quantity of gasoline supplied currently exceeds the quantity demanded
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there is a surplus of gasoline.
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The traditional typewriter market has collapsed over the past decade. People now prefer personal computers. But some new typewriters continue to be produced and sold at historically low prices. Of the following which explains this result?
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The demand curve for typewriters has shifted to the left.
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When a good becomes more scarce and government imposes legal controls that effectively prevent sellers from raising its price
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the opportunity cost to purchasers of obtaining the good will nonetheless rise as long as the quantity demanded is greater than the quantity supplied.
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Your authors maintain that the prohibition on alcohol kept the __________ curve relatively stable while the __________ curve become more __________.
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demand; supply; inelastic
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Fill in the blanks: According to your authors the prohibition on alcohol in the U.S. primarily shifted the __________ curve to the __________.
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supply; left
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The city council is considering two alternative laws for reducing on-street parking in high-density residential areas. Law A would prohibit all on-street parking in these areas. Law B would require owners of residential property in these areas to provide one off-street parking space for each residential unit they own. Law B might not result in much less on-street parking in high-density areas because
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it would lower the cost of bringing a car into these areas.
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An increase in the minimum wage for unskilled labor tends to
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accomplish all of the above.
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Transactions costs are the costs of arranging contracts or transaction agreements between demanders and suppliers.
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True
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When quantity demanded is greater than quantity supplied we have what?
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Shortage
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A "good" is defined as what?
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Anything whereby more of it is preferred to less.
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The value of a good is always determined at the __________.
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margin
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Property rights are an example of what?
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Rules of the Game
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Heyne defines Economics as __________
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a theory of choice and its unintended consequences.
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The Law of Demand: _____________ relationship between price and quantity demanded other things being constant.
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Negative; Inverse; or Opposite
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On a graph if we see an increase in demand which way does the demand curve shift?
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Right
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Assume a potato farmer grows 4 potatoes at a total cost of $4. When he grows his 5th potato his total cost increases to $5.25 What are his marginal and average costs respectively for the 5th potato?
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MC=$1.25
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When quantity supplied is greater than the quantity demanded what is the result?
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Surplus
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It's unlikely that any one person could make a pencil.
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True
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Eric can type 100 words per minute and can change the oil in a car in 90 minutes. Ted can type 26 words per minute and can change the oil in a car in 45 minutes. Ted has a(n) __________ ______________ in changing oil.
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comparative advantage
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If the coefficient of elasticity is greater than 1.0 example: 1.8 (ignoring the sign) demand is said to be INELASTIC
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False
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Heyne says rush hour traffic is an example of what?
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Social Cooperation
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A company that produces computer circuit boards just negotiated a new deal. They will pay half the price they used to for the wire used to connect the circuits on the board. The result of this savings will be to:
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Increase their supply and shift the curve to the right.
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At a cookout most people would consider a hot dog to be a(n) ____________ good for a bratwurst.
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substitute
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The FDA faces a difficult trade-off - making either a Type I or Type II error when releasing a drug. A Type I error is made when a drug shouldn't have been released but was and a Type II error is made when a drug should have been released but wasn't.
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True
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According to Heyne: The key signals that help people in a commercial society coordinate their varied production and consumption plans are _________ .
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prices
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To say that the market is clear is to say that there is neither a shortage nor a surplus. The point at which this occurs is called the equilibrium point.
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True
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A local movie theater is considering increasing the price of movie tickets by 10%. If he does this the quantity demanded for movie tickets will decrease by 5%. What is the price elasticity of demand? (Make sure to ignore the negative signs. Just treat all coefficients of elasticity as if they were positive).
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0.5
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According to the economic way of thinking 'Wealth' is whatever people value.
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True
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As price increases quantity demanded ______________ and quantity supplied ________________.
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decreases increases
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You would need to know both the equilibrium price and the equilibrium quantity to be able to identify the equilibrium point.
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True
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Proofiness could appear as:
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All of the above.
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***BONUS QUESTION*** The economic way of thinking focuses on 1) actions 2) interactions and 3) ___________________ whether they are intended or unintended ones.
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consequences
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Nick just purchased a new house. The repairs that need to be done are the following in order of priority: 1. Replace Roof 2. Install Hardwood Floors 3. Remodel Upstairs Bathroom 4. Fence-in Back Yard; After replacing the roof he decides to call a contractor to install the hardwood floors as well. In choosing to install the hardwood floors his opportunity cost is:
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Remodelling the upstairs bathroom.
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If a good is scarce what must be incurred to obtain it?
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a sacrifice
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At a cookout most people would consider a hot dog bun to be a(n) ____________ good for a hotdog.
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complement
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An implication of the Law of Demand is that the demand curve slopes ___________.
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Down
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***BONUS QUESTION*** According to the article we read in The Economist a product that can be used to compare the buying power of different types of currency is
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The Big Mac
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Over the summer demand for the university coffee shop will drop off significantly. As a result consumers would expect to see shorter lines less coffee and snacks sold and a general ___________ in demand.
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decrease
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Now that you're beginning to understand The Economic Way of Thinking consider this scenario: You paid $10 for a movie ticket to a show you hoped would be good. A half hour into the show you have never been so bored. You'd rather head over to Blockbuster and get a move you already know is good but you've already spent $10 on the movie ticket. What should you do?
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Get out of there! The money you spent on the movie ticket is a sunk cost you can't get it back. It makes no sense to continue on something that isn't giving you value when you have a better option.
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Supply curves slope down.
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False
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Who coined the phrase "Commanding Heights" which defines the part of an economy that includes things like coal steel and railroads.
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Lenin
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Joseph Stalin (Lenin's successor) introduced central planning in the Soviet Union and under him the communist party managed every aspect of the economy.
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True
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In 1944 who published his work The Road to Serfdom which was critical of the direction many economies were going by following Keynes.
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Hayek
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von Mises said is that the great flaw of socialism is that it doesn't have a functioning price system to send all the signals to consumers and producers as to what something is worth; that these prices are at the very heart of what makes a functioning economy work.
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True
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When Margaret Thatcher became the British Prime Minister she began a program of taking state-owned companies basically nationalized industries and selling shares to the public.This is known as what?
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Privatization
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Two things happened at the same time in the U.S. economy in the 1970s which under the Keynesian view would have been impossible. You had a high level of unemployment AND inflation with prices rising rapidly. A new term was coined for this situation. What was it?
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stagflation
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Captains transporting British prisoners to Australia were convinced to keep prisoners alive through the journey and to their destination by appealing to their morals and values.
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False
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According to Roberts when the price of gasoline goes up consumers will tend to
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purchase less than usual.
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According to Roberts (and economics in general) non-monetary incentives tend to be less impactful than monetary ones.
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False
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When an economist says that more people will want to be doctors as doctor salaries increase what he/she means is
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holding the non-monetary satisfactions of medicine constant increasing the monetary satisfaction will make medicine more attractive relative to other professions
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The demand for kidneys is higher than the supply of donated kidneys.
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True
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The Pilgrims of Plymouth show that guilt and honor are more powerful motivators than private ownership.
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False
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The overall idea of Roberts' "Incentives Matter" is that economists are constantly studying the balance between...
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all of the above.
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The use of scarce resources is costly; __________ must always be made.
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trade-offs
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Individuals choose __________ - they try to get the most from their limited resources.
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purposefully
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______________ matter - choice is influenced in a predictable way by changes in incentives.
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incentives
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Individuals make decisions at the _______________.
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margin
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Although __________ can help us make better choices its acquisition is costly.
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information
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Beware of the secondary effects: economic actions often generate ___________ as well as direct effects.
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indirect
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The value of a good or service is ___________.
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subjective
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The test of a theory is its ability to _____________.
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predict
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An unintended consequence is a consequence that you expected and planned for ahead of time.
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False
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When prohibition banned alcohol (reduced the supply of it) what happened to the demand for it?
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It increased.
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Price is controlled/defined by cost.
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False
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Price is controlled/defined by both supply AND demand.
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True
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A price ceiling which is intended to benefit _________ unintentionally creates a _____________.
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consumers shortage
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A price floor which is intended to benefit _________ unintentionally creates a _____________.
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suppliers surplus
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For supply and demand to be the sole factors determining price the market would have to be what?
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perfectly competitive
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The president controls average annual wage increases/decreases for US citizens.
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False
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Red peppers are more expensive than green peppers because red peppers are a riper version of green peppers. This price difference is driven by suppliers' preference to:
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Receive money today rather than tomorrow.
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Profit = Total Revenue - Total Cost
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True
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Marginal revenue is the revenue gained from producing/selling one more unit.
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True
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Economics studies decisions that are made at the _____________.
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margin
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Setting Marginal Revenue equal to Marginal Cost gives you the price/quantity that...
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maximizes net revenue.
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To successfully price discriminate a seller must be able to do what?
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All of the above.
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Colleges price discriminate amongst students.
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True
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The cost of rent for your new coffee house.
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Accounting & Economic
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The salaries of employees at your new coffee house.
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Accounting & Economic
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The salary you gave up at your office job to start the coffee house.
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Economic Only
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The profits made from offering a popular new coffee cake.
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Accounting & Economic
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The cost of the money you borrowed from your 401(k) to fund the startup of the coffee shop.
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Economic Only
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The cost of the electricity to power the coffee shop.
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Accounting & Economic
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The money saved in gas driving to the coffee shop rather than all the way to the office.
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Economic Only
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The cost of hiring a baby sitter on the weekends that you work at the coffee shop.
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Economic Only
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The money you make from tips at the coffee shop.
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Accounting & Economic
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The cost to purchase the espresso roaster so that you can offer "freshly-roasted beans" to customers.
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Accounting & Economic
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A __________ is a set of exclusive rights granted by a national government to an inventor for a limited period in return for a public disclosure of the invention.
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patent
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The benefits of having a patent are
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Answers 1 & 2 only.
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**Select ALL that Apply** A cartel must meet which of the following requirements to be successful?
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Share; Substitutes; Stability; Solidarity
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**Select ALL that Apply** Miller identifies which of the following industries as being run by cartels?
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College Sports; Diamonds; Oil; Caviar
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Like Heyne Miller notes that these tickets are highly susceptible to price discrimination. (Choose the most discriminating of the options.)
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Airlines
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Which of the following industries is NOT identified by Miller as a price discriminating industry?
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Oil Companies
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Keeping the competition out results in a limited _________ and hence a _____________ price.
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supply higher
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If the government owns the business (like the mass transit systems of New York City) then they are less likely to regulate competition as they understand the economic way of thinking.
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False
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Farming subsidies are a type of price ___________ that cause a ____________ of goods.
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floor surplus
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This country can tell a success story of letting go of farming subsidies for the betterment of the public AND the farmers.
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New Zealand
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A cartel is
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an agreement among competitors to regulate prices or output.
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A cartel arrangement is likely to be successful for its members only if it can
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do all of these.
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A merger between a firm extracting petroleum and a firm refining petroleum is a
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vertical merger.
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A merger between two commercial airlines is a
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horizontal merger.
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A reduction in the price charged for luncheon specials by a downtown cafeteria will
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affect the demand (curve) for that cafeteria's luncheons if its competitors react.
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Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners license holders would not earn large profits from operating taxis in the city because
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the cost of owning a license would eat up the potential profits from operating a taxi.
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Competition among sellers occurs
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whenever sellers try to attract customers from one another.
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A highly profitable cartel arrangement among sellers contains the seeds of its own disintegration because
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a price maintained above each cartel member's marginal cost is an incentive to offer secret price reductions to attract additional business.
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A great deal of damage is done to the environment in the urban U.S. because
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the environment is treated as everyone's property and therefore as no one's property.
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A local bar provides free pretzels and peanuts and cheap drinks on a Monday night. But soon a fight breaks out in the parking lot between two quarreling patrons. Neighboring homeowners awaken as a result and call the police. What can we clearly conclude?
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The fighters impose a negative externality on the neighboring homeowners.
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A negative externality clearly occurs when
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a person's action unintentionally imposes costs on other people.
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A positive externality clearly occurs when
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a person's action unintentionally benefits other people.
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A teenager plays his radio loudly at the beach. What can we conclude?
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All of these.
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Adjudication reduces problems created by negative externalities by
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discovering who has what rights.
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Another term for negative externalities is
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spillover costs.
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An ordinance making it illegal for people to park commercial vehicles on the street overnight in residential areas
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protects some property rights and takes away others.
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A "free rider" is someone who
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accepts benefits without paying his or her share for receiving the benefits.
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A judicial system for resolving disputes creates benefits even for people who never use it because
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judicial decisions generate uniform rules which everyone can count on.
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A price support on milk is not in the interest of milk drinkers so why do elected public officials successfully implement milk price supports?
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A small number of households (dairy farmers) gain a great deal while the costs of the support program is spread among millions of other (milk drinking) households.
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According to economic theory a person
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wants to advance his or her own interests and will try to do it rationally.
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According to economic theory a politician will accept an invitation for another photo opportunity as long as
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the marginal benefit exceeds the marginal cost.
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Citizen voters are typically ignorant of many political issues because
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information is a scarce good.
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According to the economic way of thinking
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people in society strive to advance the projects they are interested in and they will advance their interests through market institutions or the institutions of government.
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According to the economic way of thinking it is efficient to support a system of law and order through taxation because
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law and order create significant spillover benefits.
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As applied to voter behavior the "rational ignorance" hypothesis claims
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voters will stop gathering information once the marginal costs exceed the marginal benefits.
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Some factors other than gender that have an effect on an employee's earnings are:
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All of the Above
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Studies in Europe show that a woman with a child will see her pay decrease after the birth of her first child and will only begin to recover once the child reaches the age of 20.
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True
|
|
|
Men see a similar decline in pay associated with having children that women see.
|
False
|
|
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Men represent what percent of occupational fatalities?
|
0.92
|
|
|
The lowest hourly wage firms may legally pay their workers is called _________ wage.
|
minimum
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|
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The short-run correlation between minimum wage and employment is a _________ one.
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Negligible
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|
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The long-run correlation between minimum wage and employment is a _________ one.
|
Negative
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An unintended consequence of increased minimum wage is increased discrimination when hiring minimum wage employees.
|
True
|
|
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The stated goal of increasing minimum wage is to enable the lowest-paid employees to earn a __________ wage.
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living
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|
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Though the number of people living in poverty in the US has ___________ over the past five decades the percentage of people living in poverty in the US has ______________.
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stayed the same decreased
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|
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The ability to move around the income distribution is called income ___________.
|
mobility
|
|
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In the past the top 1% of earners in the US accounted for 9% of the income in the US. Today the top 1% accounts for approximately 17%. This would indicate that the income inequality is doing what in the US?
|
Increasing
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The problem with unregulated fisheries is that there are no defined _________ for people to self-regulate by.
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property rights
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|
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As we seek solutions to the potential problems associated with greenhouse gases we must be sure that the consequences of ___________ action are not worse than those of _________ action until the problem can be examined further.
|
premature delaying
|
|
|
According to Miller the essence of much government policymaking has less to do with making the economic pie larger and more to do with dividing up the pie in new ways.
|
True
|
|
|
According to Miller the key to keeping garbage from becoming a problem is to
|
pay the trash man appropriately.
|
|
|
The problem with the decline of the world's fisheries is a failure of humans to manage fisheries in a way that is consistent with both maximum economic benefit and long- term survival of ocean fish stocks.
|
True
|
|
|
A ________ _________ ________ is a way for fisheries to manage their depeleting stocks and the needs of fisherman to fish. It uses biologists' calculated __________ _______ ________ to be distributed between fishermen in the form of their ______ _________ ___________. The fishermen can then choose whether to _______ ________ ________ their fishing rights.
|
Catch Share System; Total Allowable Catch; Individual Transferable Quotas; Use sell or lease
|
|
|
Miller suggests that for an endangered species to survive it must have some sort of "existence value" not an actual economic value.
|
False
|
|
|
According to Miller climate change is a classic case of a negative externality.
|
True
|
|
|
Ethanol is made primarily of
|
corn
|
|
|
Because corn grown in the US could be used to feed humans and livestock using corn for Ethanol production has a high __________ _________ associated with it.
|
opportunity cost
|
|
|
The use of economics to study the causes and consequences of political decision making is called
|
political economy
|
|
|
**Select ALL that apply.** Who benefits from Ethanol subsidies?
|
Corn Farmers; Ethanol Producers
|
|
|
NIMBY or "Not in My Backyard" is an economic concept where people want the benefits of "dirty" industries but don't want the industries close to home where the negative externalities (such as air water or noise pollution) affect their homes. NIMBY was a factor in discouraging land fills and trash incineration in the Northeast where land is at a premium.
|
True
|
|
|
Mandatory recycling programs in cities caused the supply of recyclable materials (like newspapers) to ___________ which caused the price that was being paid for them to ____________ which drove the value of the recycled material ________ the cost of recycling it.
|
increase decrease below
|
|
|
One way to discourage people from throwing away so much trash is to charge more money per bag of trash that is over-and-above your monthly allowance.
|
True
|
|
|
Charging for trash removal is a way to balance the cost associated with disposing of trash and the benefit of living without it.
|
True
|
|
|
Neoclassical Economics attempts to evaluate ALL input and output factors of the production process.
|
False
|
|
|
Externalities that affect the environment are called
|
Environmental Externalities
|
|
|
To try to incorporate the environment into Neoclassical economic models Environmental Economists attempt to _____________ environmental externalities.
|
internalize
|
|
|
One way to internalize an externality is to assign it a
|
value.
|
|
|
Economic Valuation attempts to assign a price to environmental factors.
|
False
|
|
|
In Contingent Valuation studies the "value" of the incident/good is determined by
|
the general public through surveys.
|
|
|
Ecological Economists see the economic system as a subset of the ecosystem.
|
True
|
|
|
Ecological Economists do not look at cost minimization or benefit maximization. They only consider what is good for the environment.
|
False
|
|
|
___________ development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
|
Sustainable
|
|
|
If people perceive _____________ they will ______________.
|
all of the above
|
|
|
Sustainability science is made up of
|
all of the above
|
|
|
Resources that are owned collectively by the group of people that use them are called _________ resources.
|
common
|
|
|
The "Tradgedy of the Commons" is the phenomenon that members of a common pool will over-utilize a stock until it is depleted because the common pool members see the resource as "free" and hence act like "free-riders."
|
True
|
|
|
Elinor Ostram showed a breakdown in the Tradgedy of the Commons theory. She showed that the common pool members will organize and a governing structure will be generated from the
|
bottom up.
|
|
|
**Select ALL that apply.** According to Ostram the conditions that are necessary for a common pool to succeed are which of the following?
|
The laws must be clear; The laws must be shared and agreed upon by all of the society.; Conflict resolution methods (trials punishments etc) must be local and public.; Mutual control of the resource must be established among all of the users.; The established rules and regulations must not conflict with higher levels of government.
|
|
|
Sustainable Development is made up of what factors?
|
All of the above.
|
|
|
One possible solution to the "Triple Crisis" is to solve the problems of one of the three factors and in attempting to improve this one you can harness all three and drive a new round of economic growth. The one factor is
|
Ecological Crisis
|
|
|
A big concern with "green economy" supporters is how to develop poorer societies without them having to follow the same environment-destroying process that the current developed countries underwent.
|
True
|
|
|
Environmental performance (minimizing environmental impact and being more "green") appears to be ______________ correlated with gender equality.
|
positively
|
|
|
The "burden" of moving to a more sustainable global structure lies primarily on
|
social reform.
|
|
|
A positive externality clearly occurs when
|
a person's action unintentionally benefits other people.
|
|
|
In the economic way of thinking the demand for clean air is
|
none of the above.
|
|
|
The textbook authors argue that pollution is a growing "social" problem because
|
more people are beginning to question the moral and legal rights of those doing the polluting.
|
|
|
The effective coordination of social behavior through voluntary exchange depends significantly upon
|
all of the above.
|
|
|
Fill in the blanks: __________ attempts to reduce negative externalities by __________.
|
Adjudication; discovering who has which rights
|
|
|
People will tend to "internalize externalities" when
|
responsibility for the consequences of actions is more clearly assigned to the actors.
|
|
|
The text maintains that controversies about negative externalities are almost always conflicts between the legitimate expectations of citizens and the
|
legitimate expectations of other citizens.
|
|
|
The "bubble concept" that the EPA sometimes uses in its pollution control programs is a device designed to
|
reduce the cost of achieving pollution-reduction targets.
|
|
|
The economic way of thinking assumes that a politician ignores
|
none of the above.
|
|
|
Government certification of the weights and measures used in business can be justified on the grounds that
|
it reduces total transaction costs below what they would be if all individual buyers or sellers had to check for themselves.
|
|
|
The demand for government regulation of sellers most often originates with
|
sellers.
|
|
|
In the economic way of thinking what does an entrepreneur and a bureaucrat have in common?
|
Each advances a project only if the expected marginal benefits exceed the expected marginal costs.
|
|
|
The economic way of thinking suggests that it is efficient to support a system of law and order through taxation because
|
law and order create significant spillover benefits.
|
|
|
As applied to voter behavior the "rational ignorance" hypothesis claims that
|
voters will stop gathering information once the marginal costs exceed the marginal benefits.
|
|
|
From the economic point of view why might a retired couple spend four hours a day on the golf course when they could have spent that time becoming better informed of the voting record of their elected representative in Congress?
|
They consider golfing a more productive use of their time.
|
|
|
A clear difference between the market system and government is
|
expressed by none of the above.
|
|
|
GDP accounting ignores
|
all of the above.
|
|
|
How does the contribution to national output of a wheat farmer get counted in the gross domestic product if the Bureau of Economic Analysis measures only the value of final goods such as loaves of bread?
|
It is included in the cost of materials purchased by those who sell loaves of bread.
|
|
|
Inflation can be defined as
|
a sustained rise in the price level.
|
|
|
Per capita GDP is simply GDP divided by
|
the population.
|
|
|
Which of the following might be an intermediate good?
|
All of the above.
|
|
|
According to the text the concept of frictional unemployment
|
erroneously assumes that ordinary labor-market turnover is a constant.
|
|
|
If many firms in the economy find it profitable to improve worker productivity by paying higher than the market-clearing wage
|
unemployment will result.
|
|
|
Other things constant the lower one's marginal cost of searching for a job
|
the more time one will spend searching for a job.
|
|
|
To be unemployed is to be
|
without a job but actively looking for a job.
|
|
|
What's the employment rate? The number of people employed divided by
|
the noninstitutional population.
|
|
|
Are credit cards "money"?
|
No because they are not used as a general medium of exchange.
|
|
|
If bank depositors in the U.S. suddenly decided to withdraw in currency everything in their checking accounts commercial banks would
|
borrow the required Federal Reserve notes to meet the requests for currency.
|
|
|
The primary function of the reserve requirements imposed by the Fed upon commercial banks is to
|
serve as a control lever for central banking authorities.
|
|
|
Which Fed policy would be part of a restrictive monetary policy?
|
Selling government bonds.
|
|
|
Your authors use the example of economic organization in a prisoner of war camp to illustrate
|
how prisoners used cigarettes as money.
|
