Question 1

Researcher Indur Goklany has estimated that if traditional technologies, like those used in 1961, were still in use, other things equal, wildlife habitat

Accepted Answer

A)  would be more abundant and far healthier today. 
B)  would have increased, benefiting wildlife substantially. 
C)  would have declined substantially, as the need for farmland would not have declined as it did. 
D)  would have been unaffected.

Question 2

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

Accepted Answer

A)  an elastic demand for the goods produced by union labor 
B)  weak foreign competition for the product union labor helps to produce 
C)  high tariffs on goods produced by the union labor 
D)  favoritism in the allocation of government contracts to firms that employ union labor

Question 3

What will the federal government have to do in order to redeem the bonds in the Social Security Trust Fund?

Accepted Answer

A)  raise taxes 
B)  cut expenditures on other government programs 
C)  borrow additional funds 
D)  Some combination of a, b, and c.

Question 4

Which of the following would constitute the strongest evidence of employment discrimination against female employees?

Accepted Answer

A)  The average wage of female workers is lower than the average wage of males. 
B)  The average wage of female employees is lower than the average wage of males with similar productive characteristics. 
C)  The mean number of years of schooling of female workers is lower than that of males. 
D)  The average hours worked by female employees is less than the average hours worked by males.

Question 5

When a park is funded by visitors but not by taxpayers in general,

Accepted Answer

A)  there will be too few parks because most people will not pay to use a park. 
B)  visitors will be better served because poor service would lead to reductions in revenues. 
C)  park budgets will decline. 
D)  park quality will decline.

Question 6

What are some of the criticisms of voucher programs? How would a voucher program be modified to address these concerns?

Accepted Answer

The answer of What are some of the criticisms of...

Question 7

Discuss how size of government can negatively affect economic growth.

Accepted Answer

The answer of Discuss how size of government can negatively...

Question 8

Which of the following is true?

Accepted Answer

A)  Investment in the stock market is a relatively foolproof method for an investor to earn a high rate of return during the next five years. 
B)  Current stock prices already reflect information that is known with a high degree of certainty. 
C)  Experts are able to predict changes in the direction of the broad stock market indexes with a high degree of accuracy. 
D)  While changes in the prices of specific stocks are difficult to predict, it is relatively easy to predict the future direction of the broad stock market. 
E)  Both c and d are true.

Question 9

Renewable resources are those that

Accepted Answer

A)  can be renewed, but only with the use of energy resources. 
B)  are constantly being renewed by nature. 
C)  will inevitably run out over time, like all other resources. 
D)  are not really scarce, because they are constantly renewed naturally.

Question 10

Which of the following is true?

Accepted Answer

A)  Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  If employers can hire equally productive female employees at a lower wage than males, the profit motive gives them a strong incentive to do so. 
C)  The female/male earnings ratio is higher for persons who are married than for those who remain single. 
D)  Both a and c are true.

Question 11

When market trades in water occur, we can assume that

Accepted Answer

A)  the party releasing water is the loser. 
B)  the party buying water is paying too much. 
C)  the trade in something as important as water is immoral. 
D)  the signals and incentives flowing from the trades help many in that water market, not just the buyer and seller directly.

Question 12

When compared to the achievement scores of students in other nations, U.S. students are

Accepted Answer

A)  well-below average. 
B)  well-above average. 
C)  about average. 
D)  above average in mathematics, but below average in science.

Question 13

An indexed equity mutual fund

Accepted Answer

A)  is directly tied to either the consumer price index or the GDP deflator. 
B)  is a fund that hires a manager who will try to pick the stocks that will increase most in value in the future. 
C)  merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500. 
D)  will have high operating costs because these funds engage in a substantial amount of stock trading.

Question 14

With regard to environmental programs and regulations, economic analysis indicates that

Accepted Answer

A)  environmental quality is something that people value and, therefore, are willing to pay for. 
B)  people value many other things, but environmental values always come first. 
C)  income levels exert little impact on the demand for environmental quality. 
D)  the cost of an environmental policy matters little if the policy provides environmental health benefits.

Question 15

Which of the following has enhanced the ability of investors, without any special business skills, to benefit from the ownership of corporate America?

Accepted Answer

A)  the increased availability of mutual funds that make it possible for even small investors to purchase a diverse stock portfolio at a low cost 
B)  an increased tendency of small investors to buy and sell stock frequently, using stock tips from investment experts 
C)  the virtual disappearance of business failures among corporations with publicly traded stock shares 
D)  all of the above

Question 16

A worker living in a state with a right-to-work law

Accepted Answer

A)  cannot be employed at a union firm until he has joined the union. 
B)  cannot be required to join a union as a condition of employment. 
C)  must agree when he is hired never to join a union. 
D)  is guaranteed a job in government if he cannot find a private sector job.

Question 17

In 2009, the Social Security payroll tax did not apply to annual income above

Accepted Answer

A)  $15,000. 
B)  $32,000. 
C)  $106,800. 
D)  $200,000.

Question 18

Which of the following conditions during 2008-2009 most closely paralleled the economic conditions of the Great Depression?

Accepted Answer

A)  record-high unemployment rates for a period of many years 
B)  a sharp and prolonged contraction in the money supply 
C)  significant increases in taxes and trade restrictions in order to counter budget deficits 
D)  frequent policy changes that generated an unstable and unpredictable economic climate

Question 19

Jane is a 22-year-old college graduate. She has just started working at a job that pays her $75,000 per year. Since you have had an economics course, Jane asks you for advice on where to invest the money she is saving for her retirement. What do you recommend?

Accepted Answer

The answer of Jane is a 22-year-old college graduate. She...

Question 20

The administrative, enforcement, and compliance costs of collecting taxes in the United States sum to

Accepted Answer

A)  between 1 and 2 percent of the revenues collected. 
B)  between 5 and 6 percent of the revenues collected. 
C)  between 12 and 15 percent of the revenues collected. 
D)  more than half of the revenues collected.

Exam 16: Applying the Basics: Special Topics in Economics

Researcher Indur Goklany has estimated that if traditional technologies, like those used in 1961, were still in use, other things equal, wildlife habitat

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

What will the federal government have to do in order to redeem the bonds in the Social Security Trust Fund?

Which of the following would constitute the strongest evidence of employment discrimination against female employees?

When a park is funded by visitors but not by taxpayers in general,

What are some of the criticisms of voucher programs? How would a voucher program be modified to address these concerns?

Discuss how size of government can negatively affect economic growth.

Which of the following is true?

Renewable resources are those that

Which of the following is true?

When market trades in water occur, we can assume that

When compared to the achievement scores of students in other nations, U.S. students are

An indexed equity mutual fund

With regard to environmental programs and regulations, economic analysis indicates that

Which of the following has enhanced the ability of investors, without any special business skills, to benefit from the ownership of corporate America?

A worker living in a state with a right-to-work law

In 2009, the Social Security payroll tax did not apply to annual income above

Which of the following conditions during 2008-2009 most closely paralleled the economic conditions of the Great Depression?

Jane is a 22-year-old college graduate. She has just started working at a job that pays her $75,000 per year. Since you have had an economics course, Jane asks you for advice on where to invest the money she is saving for her retirement. What do you recommend?

The administrative, enforcement, and compliance costs of collecting taxes in the United States sum to