Question 1

The view that caveat emptor must be replaced by caveat venditor is most closely associated with

Accepted Answer

A)  Liberals and Radicals. 
B)  Conservatives. 
C)  Conservatives and Liberals. 
D)  Liberals. 
A)  Liberals and Radicals. 
B)  Conservatives. 
C)  Conservatives and Liberals. 
D)  Liberals. A

Question 2

If the demand for automobiles is elastic, higher prices for safety should reduce total dollar sales.

Accepted Answer

A) True 
 B)False  True

Question 3

According to the Radical view

Accepted Answer

A)  consumer protectionism is a highly effective restraint on the growth of corporate power. 
B)  consumer protection has had little negative effect on corporate profitability. 
C)  the Conservative and Liberal views represent a sharp choice on the role of consumer activity. 
D)  higher-priced autos will mostly have an adverse impact on wealthy consumers compared to less well-off consumers. 
A)  consumer protectionism is a highly effective restraint on the growth of corporate power. 
B)  consumer protection has had little negative effect on corporate profitability. 
C)  the Conservative and Liberal views represent a sharp choice on the role of consumer activity. 
D)  higher-priced autos will mostly have an adverse impact on wealthy consumers compared to less well-off consumers. B

Question 4

Since the imposition of auto safety codes, the ratio of deaths to drivers has

Accepted Answer

A)  increased. 
B)  decreased. 
C)  stayed about the same. 
D)  cannot be determined at this point in time. 
A)  increased. 
B)  decreased. 
C)  stayed about the same. 
D)  cannot be determined at this point in time.

Question 5

Radicals maintain that

Accepted Answer

A)  auto safety has been used to increase corporate profitability. 
B)  auto safety is unimportant. 
C)  safety standards are too high. 
D)  auto prices should be kept low so that everyone can afford them. 
A)  auto safety has been used to increase corporate profitability. 
B)  auto safety is unimportant. 
C)  safety standards are too high. 
D)  auto prices should be kept low so that everyone can afford them.

Question 6

The argument that the consumer is sovereign holds that

Accepted Answer

A)  consumers must be protected by government. 
B)  consumers are the real source of power in the market. 
C)  consumers are by nature irrational. 
D)  None of the above. 
A)  consumers must be protected by government. 
B)  consumers are the real source of power in the market. 
C)  consumers are by nature irrational. 
D)  None of the above.

Question 7

Conservatives are against laws banning cell phone use while driving because

Accepted Answer

A)  alleged benefits are too imprecise. 
B)  they distract drivers and increase car accidents. 
C)  auto producers would increase profits. 
D)  they promote driver awareness of traffic. 
A)  alleged benefits are too imprecise. 
B)  they distract drivers and increase car accidents. 
C)  auto producers would increase profits. 
D)  they promote driver awareness of traffic.

Question 8

According to the concept of consumer sovereignty, consumers

Accepted Answer

A)  should be protected from defective products. 
B)  demand for goods is manipulated by advertisers. 
C)  should join together into consumer protection action groups. 
D)  are and should be the final authority in determining output and prices. 
A)  should be protected from defective products. 
B)  demand for goods is manipulated by advertisers. 
C)  should join together into consumer protection action groups. 
D)  are and should be the final authority in determining output and prices.

Question 9

Caveat emptor

Accepted Answer

A)  suggests that sellers really are more powerful than consumers. 
B)  is the slogan of the consumer protection movement. 
C)  means "seller beware." 
D)  was the title of a book written by Ralph Nader. 
A)  suggests that sellers really are more powerful than consumers. 
B)  is the slogan of the consumer protection movement. 
C)  means "seller beware." 
D)  was the title of a book written by Ralph Nader.

Question 10

Radicals claim that product safety concerns divert attention from the fundamentally irrational patterns of consumption and production.

Accepted Answer

A) True 
 B)False

Question 11

Radicals claim automobile safety standards improve consumer sovereignty.

Accepted Answer

A) True 
 B)False

Question 12

Ford Motor Company's experience in the late 1970s indicated that consumers were willing to pay the costs for greater safety.

Accepted Answer

A) True 
 B)False

Question 13

Conservatives see as one of the effects of auto safety standards

Accepted Answer

A)  reduced use of unsafe cars. 
B)  increased profitability for auto producers. 
C)  an increase in demand for automobiles. 
D)  excessive growth of government bureaucracy. 
A)  reduced use of unsafe cars. 
B)  increased profitability for auto producers. 
C)  an increase in demand for automobiles. 
D)  excessive growth of government bureaucracy.

Question 14

Consumer sovereignty and consumer protection are roughly equivalent economic concepts.

Accepted Answer

A) True 
 B)False

Question 15

The external costs of automobiles would be reduced, Liberals argue, if the price of cars were greatly increased.

Accepted Answer

A) True 
 B)False

Question 16

Liberals maintain that auto safety standards

Accepted Answer

A)  add no cost to retail auto prices. 
B)  add to private costs but produce greater social gains. 
C)  would have been voluntarily introduced by auto producers. 
D)  are not important to auto safety. 
A)  add no cost to retail auto prices. 
B)  add to private costs but produce greater social gains. 
C)  would have been voluntarily introduced by auto producers. 
D)  are not important to auto safety.

Question 17

An example of the "external costs" of auto production is

Accepted Answer

A)  higher pollution levels. 
B)  retail costs of auto safety equipment. 
C)  increased competition due to government interference in the market. 
D)  the cost of automobiles prior to the installation of safety features. 
A)  higher pollution levels. 
B)  retail costs of auto safety equipment. 
C)  increased competition due to government interference in the market. 
D)  the cost of automobiles prior to the installation of safety features.

Question 18

Liberals tend to value cost-benefit analysis techniques than do Conservatives.

Accepted Answer

A) True 
 B)False

Question 19

Conservatives claim that the demand for autos is inelastic.

Accepted Answer

A) True 
 B)False

Question 20

Consumer sovereignty and caveat emptor are mutually exclusive concepts.

Accepted Answer

A) True 
 B)False

The view that caveat emptor must be replaced by caveat venditor is most closely associated with

If the demand for automobiles is elastic, higher prices for safety should reduce total dollar sales.

According to the Radical view

Since the imposition of auto safety codes, the ratio of deaths to drivers has

Radicals maintain that

The argument that the consumer is sovereign holds that

Conservatives are against laws banning cell phone use while driving because

According to the concept of consumer sovereignty, consumers

Caveat emptor

Radicals claim that product safety concerns divert attention from the fundamentally irrational patterns of consumption and production.

Radicals claim automobile safety standards improve consumer sovereignty.

Ford Motor Company's experience in the late 1970s indicated that consumers were willing to pay the costs for greater safety.

Conservatives see as one of the effects of auto safety standards

Consumer sovereignty and consumer protection are roughly equivalent economic concepts.

The external costs of automobiles would be reduced, Liberals argue, if the price of cars were greatly increased.

Liberals maintain that auto safety standards

An example of the "external costs" of auto production is

Liberals tend to value cost-benefit analysis techniques than do Conservatives.

Conservatives claim that the demand for autos is inelastic.

Consumer sovereignty and caveat emptor are mutually exclusive concepts.

Responding to Market Outcomes: Competitionor Protection for American Agriculture

Dealing With Externalities: How Can We Save the Environment

Imperfect Competition: Is Big Business a Threat or a Boon

Economic Regulation Which Path: Deregulation or Reregulation

Income Distribution: Does America Have an Income Inequality Problem

Financing Government: What Is a Fair System of Taxation

Macroeconomic Instability: Are We Depression-Proof

Economic Growth and Stability: Can We Maintain High and Steady Rates of Economic Growth

Balancing the Federal Budget: Should We Be Worried About the Rising Federal Deficit

Unemployment: Is Joblessness an Overrated Problem

Inflation: Can Price Pressures Be Kept Under Control

The New Population Problem: Can We Save Our Social Security System

International Economics: Where Does America Fit Into the New World Order

Ideological Differences and Justifications for Planning in Economics

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Exam 2: Consumer Welfare: Is It Necessary to Protect the Consumer

The view that caveat emptor must be replaced by caveat venditor is most closely associated with

If the demand for automobiles is elastic, higher prices for safety should reduce total dollar sales.

According to the Radical view

Since the imposition of auto safety codes, the ratio of deaths to drivers has

Radicals maintain that

The argument that the consumer is sovereign holds that

Conservatives are against laws banning cell phone use while driving because

According to the concept of consumer sovereignty, consumers

Caveat emptor

Radicals claim that product safety concerns divert attention from the fundamentally irrational patterns of consumption and production.

Radicals claim automobile safety standards improve consumer sovereignty.

Ford Motor Company's experience in the late 1970s indicated that consumers were willing to pay the costs for greater safety.

Conservatives see as one of the effects of auto safety standards

Consumer sovereignty and consumer protection are roughly equivalent economic concepts.

The external costs of automobiles would be reduced, Liberals argue, if the price of cars were greatly increased.

Liberals maintain that auto safety standards

An example of the "external costs" of auto production is

Liberals tend to value cost-benefit analysis techniques than do Conservatives.

Conservatives claim that the demand for autos is inelastic.

Consumer sovereignty and caveat emptor are mutually exclusive concepts.

Responding to Market Outcomes: Competitionor Protection for American Agriculture

Dealing With Externalities: How Can We Save the Environment

Imperfect Competition: Is Big Business a Threat or a Boon

Economic Regulation Which Path: Deregulation or Reregulation

Income Distribution: Does America Have an Income Inequality Problem

Financing Government: What Is a Fair System of Taxation

Macroeconomic Instability: Are We Depression-Proof

Economic Growth and Stability: Can We Maintain High and Steady Rates of Economic Growth

Balancing the Federal Budget: Should We Be Worried About the Rising Federal Deficit

Unemployment: Is Joblessness an Overrated Problem

Inflation: Can Price Pressures Be Kept Under Control

The New Population Problem: Can We Save Our Social Security System

International Economics: Where Does America Fit Into the New World Order

Ideological Differences and Justifications for Planning in Economics

Filters