Test 1 Flashcards
(40 cards)
The Principle that says that our choices demonstrate our values is
Revealed Preference
Wyn is considering driving to a fast food place for an order of jalapino poppers. Which is true?
The cost of the first order of jalapino poppers must be greater than the cost of a second order.
Simone buys Kat’s lunch. This is?
None of the Above.
Gregor says that an all you can eat pizza place, he stops eating when he feels that eating any more would embarrass him. This means that Gregor
Faces costs that are not monetary in nature.
One reason the supply curve slopes upward is?
The law of Diminishing Returns
If the government pays some of producers’ costs, leading them to produce more than they would in the market, then….?
The value of some units produced is less than the cost.
If a person breaks her own window and pays to get it replaced..?
Her wealth decreases.
Efficient study dictates that?
The marginal value of studying is equal to the marginal cost.
People’s implicit statistical value of their own lives is measured by?
Their willingness to accept higher pay to do more dangerous jobs.
The consumer’s gain from purchasing a good plus the producer’s gain from producing a good is equal to?
(The Total Value {minus} the Total Cost of the good)
Which is not a function of market price?
Distribute products evenly between consumers.
If the state wants to manage the Economy as well as individuals do, through markets, it must posses at least as much knowledge as every individual in the Economy. This is known as?
The Calculation Problem.
The direct costs of Regulation include?
(A&B) - a) Business employees and programs for reporting, planning and administration of complying with the regulations.
b) Government Employees to monitor and enforce the Law.
Without CAFE standards, cars?
- would be less safe
- would be more expensive
- would provide less value to consumers
- all of the above
- None of the Above
A job will be (destroyed) by the free market only if?
The cost of the resources used to produce the good in question is greater than the value of the good.
Regulatory capture occurs when?
Regulators work on the side of the firm, instead of monitoring and enforcing the law.
In 2009, expensive testing for the metal, lead, in toys?
Was welcomed by large toy manufacturers.
Which is an example of Status Quo minus fallacy?
Since the state provides housing for 1.2 million people, if there were no government housing, there would 1.2 million more homeless people.
When we say that people are “Rationally Ignorant” regarding voting we mean?
Since 1 vote will not likely change the elections results, the value of voting does not justify expending effort to intelligently vote.
The fact that the government passed laws requiring ethanol to be put in gasoline is evidence that putting ethanol in gasoline…?
Decreases Social Gain
Which is not a resource?
Money
According to Bastiat, in the manufacture of a coat…?
Everyone in the production process is a middleman.
Bastiat says:
We know that the best method for transporting grain involves hiring others to do so, since this is the method people usually choose when they are free.
Milton Friedman was once told that workers in an undeveloped country used shovels, instead of bulldozers in order to create more jobs. He recommended that they…?
Use spoons instead.
