Deck 20: Globalization and Protectionism

Question 1

Normative economics is about:

A)verifying and confirming economic policy.
B)describing, explaining, or predicting economic events.
C)prescribing and making a claim on the economy.
D)making recommendations about what economic policy should be.

Answer 1

D

Question 2

Presidential campaign speeches about economic policyare largely filled with:

A)poor economics.
B)normative economics.
C)positive economics.
D)false promises.

Answer 2

B

Question 3

In a now infamous leaked memo, Larry Summersargued for which of the following?

A)keeping the price of kidneys at $0
B)encouraging the importation of kidneys from less- developed countries
C)importing pollutants from less-developed countries
D)exporting pollutants to less-developed countries

Answer 3

D

Question 4

The economic reasoning for exporting pollution fromrich to poor countries is that:

A)the rich value health more than money and the poor value money more than health.(True Answer
)Correct
B)the rich value money more than health and the poor value health more than money.
C)pollution is a more severe problem in the rich countries than in the poor countries.
D)the poor countries can use the money they make to resolve the problems of pollution.

Question 5

The problems of standard economic reasoning thatneed to be examined include all of the followingEXCEPT:

A)the problem of exploitation.
B)meddlesome preferences.
C)unfair and unequal treatment.(True Answer )Correct
D)cultural goods and paternalism.

Question 6

Larry Summers argued that it makes economic sensefor:

A)poor people to pay higher taxes.
B)rich countries to export their pollution to poor countries.
C)poor countries to pay higher taxes.
D)unemployment to be lower in heavily unionized states.

Question 7

Many economists argue that kidney sales are________ exploitative because ________.

A)not; they are market exchange that leaves both recipients and donors better off (True Answer
)Correct
B)always; the rich on average benefit at the expense of the poor
C)not; the government could set low prices
D)always; you cannot put a price on life

Question 8

Which of the following is a positive economicstatement?

A)Shortages in the kidney trade are a necessary phenomenon.
B)Animal rights activists are to blame for the high prices of real furs.
C)We should encourage the importation of kidneys from the less-developed countries.
D)A government-imposed price of zero for kidneys helps create a black market in kidneys.(True Answer
)Correct

Question 9

Why would a poor country accept pollution from arich country?

A)The money payment is more valuable than the costs of having the pollution.
B)The poor country values health less than rich countries.
C)Poor countries have better technologies for storing pollution.
D)Poor countries have more space for storing pollution.

Question 10

Which of the following is a positive economicstatement?

A)Raising the price of steak should be a priority for a government that wishes to protect animal
Rights.
B)An export market that transports pollutants to less- developed countries will increase their short-run
GDP)
C)The government should limit earnings for top management in corporations.
D)The government should not provide bailouts to corporations in financial trouble.

Question 11

Positive economics is about:

A)verifying and confirming economic policy.
B)describing, explaining, or predicting economic events.
C)prescribing and making a claim on the economy.
D)making recommendations about what economic policy should be.

Question 12

Positive economics is:

A)about morals and values.
B)the method used to assess justice.
C)description of facts.
D)impossible to accomplish.

Question 13

Which of these statements is an example of positiveeconomics?

A)A free market in kidneys would end the shortage of kidneys.
B)People should not sell organs for profit.
C)The United States should not trade with countries with human rights abuses.
D)All three of these statements are examples of positive economics.

Question 14

Which of these statements is an example of normativeeconomics?

A)The Americans with Disabilities Act reduced employment opportunities for the disabled.
B)Rent controls reduce the housing stock.
C)Workers pay the majority of corporate taxes in the form of lower wages.
D)The government should not have bailed out the domestic automobile market.

Question 15

Which of the following is a normative economicstatement?

A)Raising the price of new textbooks will lead students to seek more used textbooks.
B)Raising the price of new textbooks will lead students to buy fewer new textbooks.
C)Publishers should not raise the price of new textbooks.
D)The price of new textbooks will rise if transportation costs and costs of paper rise.

Question 16

Which of the following is a positive statement?

A)The government should limit imports of sugar.
B)Import restrictions on sugar will increase sugar prices.
C)Sugar is not good for you.
D)Import quotas on sugar are unfair to foreign sugar sellers.

Question 17

The economic reasoning for importing kidneys is that:
I) trade may save many kidney-failure patients' lives
II)people who are allowed to sell their kidneys earnmore income
III) buyers and sellers of kidneys can both be madebetter off by trade.

A)II only
B)II and III only
C)I and III only
D)I, II, and III

Question 18

Which is NOT a so-called problem of economicreasoning?

A)meddlesome preferences
B)fair and equal treatment
C)exploitation
D)prices as information signals

Question 19

The difference between positive and normativeeconomics is that:

A)positive economics is what you are learning in school whereas normative economics is what you will
Learn in the real world.
B)normative economics is based on proven fact whereas positive economics is based on what should
Be)
C)positive economics describes, explains and predicts economic events, whereas normative economics
Recommends what economic policies should look
Like.
D)economists always use positive economics whereas politicians always use normative economics.

Question 20

The case for exporting pollution from rich countriesto poor countries is based on:

A)the power of politics.
B)the power of coercion.
C)the power of trade.
D)monopoly power.

Question 21

A city-owned hospital sends morbidly obese patientsto the zoo to get an MRI. The city, however, couldpurchase a newer model MRI machine (at a cost of$2.5 million) that is capable of accommodatingmorbidly obese patients. This example highlights theproblem of:

A)exploitation.
B)meddlesome preferences.
C)fair and equal treatment.
D)the distribution of wealth.

Question 22

Which of the following hold to a meddlesomepreference?

A)people who are against interracial dating
B)people who are against sodomy
C)people who are against certain religious practices
D)All of the answers are correct.(True Answer )Correct

Question 23

An unintended consequence of the Frenchgovernment's support for French-language movies isthat:

A)it lowers the quality of French movies.(True Answer )Correct
B)it increases the quality of French movies.
C)it makes French movies more internationally competitive.
D)it has no effect on the viewing habits of French movie fans.

Question 24

What principle was the basis for equipping buses inNew York City for wheelchair service?

A)efficiency
B)paternalism
C)poverty reduction
D)fair and equal treatment

Question 25

It is sometimes difficult to see the difference between:

A)inequality and the distribution of wealth.
B)risk and fair treatment.
C)exploitation and exchange.
D)fair treatment and equality.

Question 26

The French government spends what percent of GDPper year subsidizing culture?

A)0.5 percent
B)1.0 percent
C)1.5 percent
D)2.0 percent

Question 27

Someone who believes that the sale of kidneys by thepoor is exploitative would find which of the followingprice tags for a kidney most exploitative?

A)$0
B)$250
C)$10,000
D)$50,000

Question 28

Suppose the sale of human kidneys was legal. If theseller of kidneys is well informed of the risks of theexchange, then:

A)some people believe this is not exploitation, but instead simply a voluntary trade.(True Answer
)Correct
B)the price of kidneys will be lower.
C)wealthy individuals will be just as likely to sell their kidneys as poor individuals.
D)these types of exchanges would happen only in poor countries.

Question 29

Meddlesome preferences are ________ with ________.

A)consistent; liberty, rights, and religious freedom
B)inconsistent; liberty, rights, and religious freedom
C)consistent; more fundamental rights like the pursuit of life, liberty, and happiness
D)harmless; dictatorships

Question 30

A city-owned hospital sends morbidly obese patientsto the zoo to get an MRI. The city, however, couldpurchase a newer model MRI machine (at a cost of$2.5 million) that is capable of accommodatingmorbidly obese patients. This type of problem:

A)can usually be solved by economists.
B)can always be solved by economists.
C)cannot be solved by economists.(True Answer )Correct
D)can be solved by economists who are trained in econometrics.

Question 31

The notion of fair and equal treatment can:

A)match the value of trade and efficiency.
B)be irrelevant to the value of trade and efficiency.
C)enhance the value of trade and efficiency.
D)run up against the value of trade and efficiency.

Question 32

Which of the following statements is TRUE?

A)It is illegal to sell horsemeat in European restaurants.
B)It is illegal to sell horsemeat in Japanese restaurants.
C)It is illegal to sell horsemeat in California restaurants.
D)All of these statements are correct.

Question 33

It is often difficult to resolve meddlesome preferenceswith other values that are considered important suchas:

A)liberty.
B)rights.
C)religious freedom.
D)All of the answers are correct.(True Answer )Correct

Question 34

Which of the following statements is TRUE?

A)New York City buses do not accommodate the disabled.
B)Taxpayers would have lost money if New York City had paid disabled people to use taxis rather than
Retrofitting city buses for wheelchair
Ramps.
C)New York City buses are capable of accepting passengers in wheelchairs.
D)New York City would have saved money if buses were used to transport the disabled rather than
Taxicabs.

Question 35

A meddlesome preference is a(n):

A)interpersonal opinion about one's self- discipline.
B)interpersonal opinion about one's motivation.
C)preference about other people's behavior, even when it doesn't affect you.
D)preference about how the government should reform tax law.

Question 36

Preferences over what other people do, even whentheir actions don't interfere in any direct way with therest of society, are called:

A)interfering preferences.
B)intervening preferences.
C)meddlesome preferences.
D)officious preferences.

Question 37

The question of whether selling kidneys is exploitativeboils down to the question of whether:

A)we could save more lives by allowing the sale of kidneys.
B)it is wrong to buy things from the poor just because they are poor.
C)it is risky to sell kidneys.
D)the poor would be better off with or without the additional income.

Question 38

Which of the following statements is TRUE?

A)The French government mandates that 40 percent of the movies shown on TV must be French-language
Movies.
B)The French government encourages rock-and-roll music from French bands instead of American and
British rock bands.
C)In general, the French government tries to support French culture.
D)Each of these statements is correct.(True Answer )Correct

Question 39

Most university officials believe students shouldexercise regularly, and thus charge them a mandatorygym fee so that they can regularly use university gymfacilities. Many students do not use the gym facilitiesand would prefer to use the money for textbooks orfood. Which one of the following arguments againststandard economic reasoning can be applied to thisscenario?

A)fair and equal treatment
B)cultural goods and paternalism (True Answer )Correct
C)poverty, inequality, and the distribution of income
D)exploitation

Question 40

Which of the following assertions about the principleof fair and equal treatment is correct?

A)Fair and equal treatment does not apply in New York City.
B)Mass transit is really about not making people feel different or disadvantaged.
C)Handicapped should have easier and more luxurious transport options.
D)Equipping buses to accept handicapped passengers increases the value of efficiency.

Question 41

John Rawls's A Theory of Justice, published in 1971,argued that ________ is/are key(s) for evaluatingsocial policy.

A)design of the tax system
B)economic welfare
C)interaction of suppliers and demanders
D)questions of income and wealth distribution (True Answer )Correct

Question 42

What is the maximin principle?

A)that government should minimize benefits that the maximum income earners receive from society,
Allowing others to become better-off
B)that government should maximize benefits that the minimum income earners receive from society,
Making them as well-off as possible (True Answer
)Correct
C)that the least well-off people in society should be made as well-off as anyone else in society
D)that the most well-off people in society should have a maximum level of wealth

Question 43

The maximin principle is the idea that a governmentshould:

A)maximize the benefits accruing to the most disadvantaged group in society.(True Answer
)Correct
B)maximize the benefits accruing to the most advantaged group in society.
C)minimize the benefits accruing to the most disadvantaged group in society.
D)minimize the benefits accruing to the most advantaged group in society.

Question 44

(Table: Maximin Principle) Refer to the table. If incomeis shown in thousands of dollars, according to Rawls'smaximin principle, Society ________ is preferred toSociety ________.

A)A; D
B)B; C
C)C; A
D)D; B

Question 45

Rawls's maximin principle is based on:

A)minimizing the income of the wealthiest in society.
B)trade-offs between efficiency and equity.
C)finding the Nash equilibrium for society.
D)maximizing the benefits to the most disadvantaged group in society.

Question 46

(Table: Rawls's Maximin) Refer to the table. According to themaximin principle, which of the societies is ranked highest?

A)A
B)B
C)D
D)All societies are ranked equally.

Question 47

What is the title of John Rawls's book about incomeand wealth distribution?

A)Anarchy, State, and Utopia
B)The Wealth of Nations
C)A Theory of Justice
D)A Theory of Efficiency

Question 48

The view that has proven especially influential onnormative policy judgments is:

A)John Rawls's maximin principle.
B)utilitarianism.
C)Robert Nozick's entitlement theory of justice.
D)All three of these views have been very influential on normative policies in the past.(True Answer
)Correct

Question 49

(Table: Rawls's Maximin) Refer to the table. According to themaximin principle, which of the societies is ranked lowest?

A)A
B)C
C)D
D)All societies are ranked equally.

Question 50

The problem with kidney sales and exportingpollution to poor countries is not trade per se but the:

A)demand and supply making the trade happen.
B)poverty and inequality making the trade happen.
C)surplus and shortage making the trade happen.
D)market making the trade happen.

Question 51

The goal of utilitarianism is to:

A)ensure that everyone is equal.
B)maximize the happiness of the poor.
C)create the greatest happiness for society.(True Answer )Correct
D)prevent recessions, high unemployment, and inflation.

Question 52

(Table: Society A, B, C, D) Refer to the table. According to themaximin principle, which of the societies is ranked highest?

A)A
B)B
C)C
D)D

Question 53

The pragmatic criticism argues that the Frenchgovernment's subsidy schemes tend to be:

A)productive and effective.
B)productive but unnecessary.
C)counterproductive but necessary.
D)counterproductive and wasteful.(True Answer )Correct

Question 54

Taking into account the incentive effects ofredistribution on the poor, utilitarianism suggeststhat:

A)giving dollars to poor people is the best way to improve their welfare.
B)giving dollars to poor people is not always the best way to improve their welfare.
C)poor people tend to be more responsive to incentives.
D)poor people tend to be less responsive to incentives.

Question 55

(Table: Society A, B, C, D) Refer to the table. According to themaximin principle, which of the societies is ranked lowest?

A)A
B)B
C)C
D)D

Question 56

Consider the statement: Giving an extra dollar to ahomeless person provides more additional utility thangiving an extra dollar to a corporate CEO. Economictheory:

A)doesn't allow economists to directly test this statement.
B)can test this proposition scientifically.
C)leads economists to agree with this statement.
D)can test this proposition by examining tax returns.

Question 57

The Rawls's maximin principle has had ________among economists because it ________ trade-offs.

A)great influence; emphasizes
B)little influence; ignores
C)little influence; over emphasizes
D)great influence; ignores

Question 58

Which of the following cases is likely a suggestion ofthe utilitarian?

A)Some amount of money should be redistributed from less productive people to more productive
People.
B)Some amount of money should be redistributed from more productive people to less productive
People.
C)Some amount of money should be redistributed from poor people to rich people.
D)Some amount of money should be redistributed from rich people toward poor people.(True Answer
)Correct

Question 59

Utilitarians are likely to suggest that taking a dollarfrom a rich person and giving it to a poor person:

A)increases society's total well-being because the loss in utility to the rich person is more than offset by the
Gain in utility to the poor person.(True Answer
)Correct
B)decreases society's total well-being because the loss in utility to the rich person is more than offset by the
Gain in utility to the poor person.
C)decreases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to
The poor person.
D)increases society's total well-being because the gain in utility to the rich person exceeds the loss in utility to
The poor person.

Question 60

Under utilitarianism, we try to implement theoutcome that:

A)makes equal allocation of utility to society.
B)raises utility of the most productive workers in the society.
C)increases utility to lower-income people in the society.
D)brings the greatest sum of utility to society.(True Answer )Correct

Question 61

Nozick argued that the distribution of income is:

A)important in assessing justice in society.
B)not relevant in understanding what is just.(True Answer )Correct
C)a stable and achievable ideal.
D)the most important value in society.

Question 62

Economics tends to put ________ weight onimmigrants' preferences compared to citizens, whilepolitics tends to put ________ weight on immigrants'preferences.

A)more; less
B)less; more
C)equal; less
D)equal; more

Question 63

Which of the following might limit the amount ofwealth a utilitarian would redistribute from rich topoor?

A)incentives
B)perceptions
C)price
D)utility

Question 64

Under which circumstances would utilitarians favor aredistribution of income from poor individuals to richindividuals?

A)always
B)if the marginal utility lost by the poor individuals was less than the marginal utility gained by the rich
Individuals
C)if the marginal utility gained by the poor individuals was less than the marginal utility lost by
The rich individuals
D)never

Question 65

Foreign aid is:

A)grants and gifts of money and goods and services from the United States to other countries.(True
Answer )Correct
B)imports of goods and services from other countries into the United States.
C)the largest part of U.S.GDP.
D)All of the answers are correct.

Question 66

For Nozick, the relevant basis of the justice of wealthand income distribution is:

A)the degree of equality of income.
B)whether income differences can be eliminated.
C)the natural limits of income.
D)whether income differences are justly acquired.

Question 67

Utilitarians:

A)are similar to animal activists, they represent those that would otherwise have no voice in
Government.
B)do not always try to make the poorest people as well-off as possible.
C)believe we should make the distribution of income more equal across all individuals.
D)believe those who earn income through productive activities should be allowed to keep it.

Question 68

Economists are:

A)more likely to take into account the preferences of foreigners when devising immigration policies than
Are politicians.
B)less likely to take into account the preferences of foreigners when devising immigration policies than
Are politicians.
C)opposed to foreign aid because it comprises a significant amount of the debt.
D)opposed to foreign aid because there are still poor people in the United States that need help.

Question 69

The amount of money the American governmentspends annually on foreign aid is:

A)significant.
B)over 3 percent of the federal budget.
C)under 1 percent of the federal budget.(True Answer )Correct
D)impossible to calculate.

Question 70

Who argued that income inequality is not a problemas long as income was justly acquired?

A)Peter Singer
B)Robert Nozick
C)John Craine
D)John Rawls

Question 71

Economics is an ethical subject in the sense that:
I) economics is a normative science
II)the market produces goods and services based onwhat people want thus respecting choice andpreferences
III) the market treats all demands equally no matterwho they stem from.

A)I only
B)II only
C)II and III only
D)I, II, and III

Question 72

Robert Nozick's entitlement theory of justice arguesthat the distribution of income is:

A)relevant only if income is justly distributed.
B)relevant regardless of how income is distributed.
C)irrelevant, what matters is whether income is justly acquired.
D)irrelevant, what matters is that income be maximized.

Question 73

Economics is an ethical subject in the sense that:

A)the market only supports the production of goods that are considered ethically valuable.
B)the market only produces goods that lead to a utilitarian outcome.
C)government actions cause market outcomes to become ethical.
D)the market treats all demands equally, regardless of whom the demand stems from.

Question 74

Consider these two theories of justice. Who is/are theproponents of these theories?
I) The justice of wealth distribution is determined bythe income status of the least well-off in society
II)The justice of wealth distribution is determined bywhether the acquisition of wealth was just.

A)I is Nozick; II is Rawls
B)I is Rawls; II is Nozick
C)Both are theories held by Nozick.
D)Both are theories held by Rawls.

Question 75

Which of the following is NOT considered an ethicalview held by most economists?

A)respect for individual choice and preference
B)some voluntary trades are exploitative (True Answer )Correct
C)support for voluntary trade
D)equality of treatment

Question 76

Many economists argue that there are ethical ideasbehind economic reasoning because:

A)economic reasoning does not second-guess people's preferences, and by extension respects people's
Choices.
B)economic reasoning is normative in nature.
C)economists include a value for welfare in all economic calculations.
D)economic markets only support those exchanges that are considered fair and equal.

Question 77

Which of the following principles would most likely befavored by J. K. Rowling, the author of the HarryPotter book series and one of the richest persons in theworld?

A)John Rawls's maximin principle
B)utilitarianism
C)Robert Nozick's entitlement theory of justice (True Answer )Correct
D)efficiency theory

Question 78

Nozick's entitlement theory is also known as:

A)the republican theory of justice.
B)the democratic theory of justice.
C)the libertarian theory of justice.(True Answer )Correct
D)the democratic socialist theory of distribution.

Question 79

Robert Nozick's entitlement theory of justice is alsoknown as the:

A)liberalism of justice.
B)libertarian theory of justice.
C)principle of maximin.
D)utilitarianism of justice.

Question 80

Suppose a U.S. presidential candidate announced thathe or she would put equal weight on the preferences ofimmigrants and U.S. citizens. This candidate wouldlikely:

A)make immigration a hot issue in his or her campaign.
B)win the election.
C)put less weight on the immigrants who send their earnings home.
D)lose the election.