Question 1

Providing citizens with enforceable property rights to resources

Accepted Answer

A)  increases resource conservation and decreases wasteful resource use. 
B)  promotes economic prosperity and thus increases demand for environmental quality. 
C)  provides people with a strong incentive not to damage the privately owned resources of others. 
D)  does all of the above. 
A)  increases resource conservation and decreases wasteful resource use. 
B)  promotes economic prosperity and thus increases demand for environmental quality. 
C)  provides people with a strong incentive not to damage the privately owned resources of others. 
D)  does all of the above.

Question 2

By promoting third-party payment of health-care expenses and the purchase of health insurance through employers, health-care policy has

Accepted Answer

A)  eroded the incentive of health-care consumers and providers to economize. 
B)  undermined the smooth operation of health-care markets. 
C)  made it more costly for persons without a job to obtain health insurance. 
D)  done all of the above. 
A)  eroded the incentive of health-care consumers and providers to economize. 
B)  undermined the smooth operation of health-care markets. 
C)  made it more costly for persons without a job to obtain health insurance. 
D)  done all of the above.

Question 3

Predictions of severe shortages due to impending natural resource depletion

Accepted Answer

A)  are widely accepted by resource economists even though such predictions are a relatively new occurrence. 
B)  have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before. 
C)  are typically made without adequate recognition and consideration of resource price elasticities. 
D)  typically assume that price elasticities are greater than they really are. 
A)  are widely accepted by resource economists even though such predictions are a relatively new occurrence. 
B)  have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before. 
C)  are typically made without adequate recognition and consideration of resource price elasticities. 
D)  typically assume that price elasticities are greater than they really are.

Question 4

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

Accepted Answer

A)  the presence of nonunion firms that produce the same product as the unionized labor 
B)  foreign competition in the market for the product produced by the unionized labor 
C)  a highly elastic demand for the product supplied by the unionized labor 
D)  all of the above 
A)  the presence of nonunion firms that produce the same product as the unionized labor 
B)  foreign competition in the market for the product produced by the unionized labor 
C)  a highly elastic demand for the product supplied by the unionized labor 
D)  all of the above

Question 5

"Doomsday" predictions about the imminent depletion of one or more of our vital natural resources usually are

Accepted Answer

A)  correct but are not reflected by relative price changes within our market economy. 
B)  overstated because of arithmetic calculation mistakes. 
C)  overstated because they disregard human responses to relative price changes. 
D)  understated because substitutes for such natural resources are also becoming less available. 
A)  correct but are not reflected by relative price changes within our market economy. 
B)  overstated because of arithmetic calculation mistakes. 
C)  overstated because they disregard human responses to relative price changes. 
D)  understated because substitutes for such natural resources are also becoming less available.

Question 6

Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)

Accepted Answer

A)  above the national average. 
B)  below the national average. 
C)  greater than 50 percent. 
D)  close to 100 percent. 
A)  above the national average. 
B)  below the national average. 
C)  greater than 50 percent. 
D)  close to 100 percent.

Question 7

Since 1970, union membership, as a percent of the labor force, has

Accepted Answer

A)  remained virtually unchanged. 
B)  increased slightly. 
C)  declined steadily. 
D)  increased significantly. 
A)  remained virtually unchanged. 
B)  increased slightly. 
C)  declined steadily. 
D)  increased significantly.

Question 8

The growth rate of the elderly population will accelerate in the future as the baby boomers move into the retirement phase of life during the years following 2010. Unless structural changes are undertaken, this increase in the growth rate of the elderly population

Accepted Answer

A)  will cause future health-care prices and expenditures to increase even more rapidly than in the past. 
B)  will cause future health-care prices and expenditures to decrease rapidly. 
C)  will cause the rate of technological advance in medicine to slow significantly. 
D)  is generally expected to have no significant impact on the health-care industry. 
A)  will cause future health-care prices and expenditures to increase even more rapidly than in the past. 
B)  will cause future health-care prices and expenditures to decrease rapidly. 
C)  will cause the rate of technological advance in medicine to slow significantly. 
D)  is generally expected to have no significant impact on the health-care industry.

Question 9

When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will

Accepted Answer

A)  set the prices (reimbursement rates) for more than 7,000 different medical procedures. 
B)  increase the supply of doctors and other medical services. 
C)  Increase the supply of doctors and other medical services. 
D)  reduce the share of health care expenses paid for by a third party, which will increase the incentive of both consumers and medical providers to economize. 
E)  All of the above are true. 
A)  set the prices (reimbursement rates) for more than 7,000 different medical procedures. 
B)  increase the supply of doctors and other medical services. 
C)  Increase the supply of doctors and other medical services. 
D)  reduce the share of health care expenses paid for by a third party, which will increase the incentive of both consumers and medical providers to economize. 
E)  All of the above are true.

Question 10

During the last two centuries, after adjustment for inflation,

Accepted Answer

A)  corporate bonds have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for corporate stocks. 
B)  corporate stocks have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for bonds. 
C)  both corporate stocks and bonds have yielded a real rate of return of about 3 percent. 
D)  both corporate stocks and bonds have yielded a real rate of return of about 7 percent. 
A)  corporate bonds have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for corporate stocks. 
B)  corporate stocks have yielded a real return of approximately 7 percent annually, compared to a real return of about 3 percent for bonds. 
C)  both corporate stocks and bonds have yielded a real rate of return of about 3 percent. 
D)  both corporate stocks and bonds have yielded a real rate of return of about 7 percent.

Question 11

Many personal finance magazines such as Money and Smart Money routinely give advice as to which stocks to buy. Should you take their advice?

Accepted Answer

Current stock prices will reflect all of

Question 12

For the first time in almost a century,

Accepted Answer

A)  the rapid growth of federal spending stopped during the 1990s. 
B)  the slow growth of federal spending began to increase during the 1990s. 
C)  state and local governments spent more than the federal government during the 1990s. 
D)  national defense became the largest category of federal spending in the 1990s. 
A)  the rapid growth of federal spending stopped during the 1990s. 
B)  the slow growth of federal spending began to increase during the 1990s. 
C)  state and local governments spent more than the federal government during the 1990s. 
D)  national defense became the largest category of federal spending in the 1990s.

Question 13

Special savings accounts that individuals would pay into and then use to pay for medical expenses (or use to purchase a catastrophic health insurance policy) are called

Accepted Answer

A)  Medicare accounts. 
B)  comprehensive insurance plans. 
C)  medical savings accounts. 
D)  Health Maintenance Organizations (HMOs). 
A)  Medicare accounts. 
B)  comprehensive insurance plans. 
C)  medical savings accounts. 
D)  Health Maintenance Organizations (HMOs).

Question 14

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Accepted Answer

A)  a reduction in out-of-pocket healthcare expenditures 
B)  government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C)  Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system 
D)  all of the above 
A)  a reduction in out-of-pocket healthcare expenditures 
B)  government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments 
C)  Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system 
D)  all of the above

Question 15

Which of the following is true?

Accepted Answer

A)  More than half of medical bills are paid for directly by consumers. 
B)  Healthcare insurance provided by one's employer is counted as personal income. 
C)  State mandated coverage of medical procedures like in-vitro fertilization, drug rehabilitation, and acupuncture, make health insurance more affordable. 
D)  Regulations prevent consumers from purchasing a health insurance plan offered in another state. 
A)  More than half of medical bills are paid for directly by consumers. 
B)  Healthcare insurance provided by one's employer is counted as personal income. 
C)  State mandated coverage of medical procedures like in-vitro fertilization, drug rehabilitation, and acupuncture, make health insurance more affordable. 
D)  Regulations prevent consumers from purchasing a health insurance plan offered in another state.

Question 16

The scientific evidence on the causes and consequences of global warming

Accepted Answer

A)  is clear and indisputable. 
B)  is uncertain and variable. 
C)  indicates global warming should be stopped regardless of cost. 
D)  is of no importance to economists. 
A)  is clear and indisputable. 
B)  is uncertain and variable. 
C)  indicates global warming should be stopped regardless of cost. 
D)  is of no importance to economists.

Question 17

Prolonged periods of monetary contraction, as was the case during the Great Depression, will likely result in

Accepted Answer

A)  an increase in real output and employment. 
B)  an increase in loanable funds and upward pressure on the rate of inflation. 
C)  a decrease in output and downward pressure on prices. 
D)  a decrease in unemployment and upward pressure on prices. 
A)  an increase in real output and employment. 
B)  an increase in loanable funds and upward pressure on the rate of inflation. 
C)  a decrease in output and downward pressure on prices. 
D)  a decrease in unemployment and upward pressure on prices.

Question 18

The parents of children in charter schools are

Accepted Answer

A)  mostly white and almost exclusively high-income recipients. 
B)  less satisfied with their children's schools than are parents of children in traditional public schools. 
C)  about equally satisfied with their children's schools as are parents of children in traditional public schools. 
D)  more satisfied with their children's schools than are parents of children in traditional public schools. 
A)  mostly white and almost exclusively high-income recipients. 
B)  less satisfied with their children's schools than are parents of children in traditional public schools. 
C)  about equally satisfied with their children's schools as are parents of children in traditional public schools. 
D)  more satisfied with their children's schools than are parents of children in traditional public schools.

Question 19

Which of the following is most likely to be associated with a strong union?

Accepted Answer

A)  The demand for the products produced by the unionized labor is highly elastic. 
B)  There are few good substitutes for the products produced by the unionized labor. 
C)  It is easy to substitute capital for the labor of the union members. 
D)  Union labor composes a large proportion of the total cost of the product that they help produce. 
A)  The demand for the products produced by the unionized labor is highly elastic. 
B)  There are few good substitutes for the products produced by the unionized labor. 
C)  It is easy to substitute capital for the labor of the union members. 
D)  Union labor composes a large proportion of the total cost of the product that they help produce.

Question 20

What are charter schools? How do they differ from voucher programs?

Accepted Answer

Charter schools are publicly funded but

Providing citizens with enforceable property rights to resources

By promoting third-party payment of health-care expenses and the purchase of health insurance through employers, health-care policy has

Predictions of severe shortages due to impending natural resource depletion

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

"Doomsday" predictions about the imminent depletion of one or more of our vital natural resources usually are

Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)

Since 1970, union membership, as a percent of the labor force, has

The growth rate of the elderly population will accelerate in the future as the baby boomers move into the retirement phase of life during the years following 2010. Unless structural changes are undertaken, this increase in the growth rate of the elderly population

When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will

During the last two centuries, after adjustment for inflation,

Many personal finance magazines such as Money and Smart Money routinely give advice as to which stocks to buy. Should you take their advice?

For the first time in almost a century,

Special savings accounts that individuals would pay into and then use to pay for medical expenses (or use to purchase a catastrophic health insurance policy) are called

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Which of the following is true?

The scientific evidence on the causes and consequences of global warming

Prolonged periods of monetary contraction, as was the case during the Great Depression, will likely result in

The parents of children in charter schools are

Which of the following is most likely to be associated with a strong union?

What are charter schools? How do they differ from voucher programs?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters

Exam 16: Applying the Basics: Special Topics in Economics

Providing citizens with enforceable property rights to resources

By promoting third-party payment of health-care expenses and the purchase of health insurance through employers, health-care policy has

Predictions of severe shortages due to impending natural resource depletion

Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?

"Doomsday" predictions about the imminent depletion of one or more of our vital natural resources usually are

Union membership as a share of the work force is ____ in states with right-to-work laws. (Fill in the blank.)

Since 1970, union membership, as a percent of the labor force, has

The growth rate of the elderly population will accelerate in the future as the baby boomers move into the retirement phase of life during the years following 2010. Unless structural changes are undertaken, this increase in the growth rate of the elderly population

When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will

During the last two centuries, after adjustment for inflation,

Many personal finance magazines such as Money and Smart Money routinely give advice as to which stocks to buy. Should you take their advice?

For the first time in almost a century,

Special savings accounts that individuals would pay into and then use to pay for medical expenses (or use to purchase a catastrophic health insurance policy) are called

Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?

Which of the following is true?

The scientific evidence on the causes and consequences of global warming

Prolonged periods of monetary contraction, as was the case during the Great Depression, will likely result in

The parents of children in charter schools are

Which of the following is most likely to be associated with a strong union?

What are charter schools? How do they differ from voucher programs?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters