Week 2 Quiz

Question 1

Question posed by pondering distributive justice

Answer 1

How do we want to allocate goods and resources across people?

Question 2

Utilitarianism

Answer 2

Pleasure vs Pain

Question 3

What issues does utilitarianism pose?

Answer 3

Issue of quality: Are all forms of happiness the same, issues measuring utility

Question 4

How does modern economics move past pleasure vs pain?

Answer 4

Focusing purely on choices, well-being is about getting what you prefer

Question 5

Founder of original utilitarianism

Answer 5

Bentham

Question 6

Social Welfare Function (Old, Bentham’s Utilitarianism)

Answer 6

Sum of all happiness-sum of pain

Question 7

Who believed all beings should be treated symmetrically?

Answer 7

Bentham

Question 8

Believed resources should go where they add the most pleasure

Answer 8

Bentham

Question 9

What is the relationship of the utilities of person 1 and person 2 under utilitarianism?

Answer 9

They are perfect substitutes

Question 10

A man should wander about treating all creatures as he himself would be treated

Answer 10

Golden Rule

Question 11

Act only according to rules you would want to be universal

Answer 11

Kant’s Categorical Imperative

Question 12

Most famous dictum of the liberal tradition of economics

Answer 12

Harm principle (Do everything which injures no one else)

Question 13

Make choices behind a veil of ignorance

Answer 13

Birth lottery

Question 14

Argued for maximizing the utility of society’s least well off

Answer 14

Rawls

Question 15

Inequality not bad in itself

Answer 15

Welfarism

Question 16

Argued each person should have an equal right to the most extensive system of total basic liberties compatible with similar system of liberty for all, more about social and economic inequalities and their arrangements

Answer 16

Rawls

Question 17

Is equality of outcome always desirable?

Answer 17

No

Question 18

Ronald Dworkin’s argument on the dilemma of liberalism

Answer 18

Liberal must enrich the choices people have without enforcing choices on them

Question 19

Definition of economics Lionel Robbins

Answer 19

The science which studies human behavior as a relationship between ends and scarce means which have alternative uses

Question 20

First Welfare Theorem of Economics

Answer 20

Markets produce efficient outcomes when agents are price takers, externalities are corrected for, information is symmetric

Question 21

Is an efficient outcome always equitable?

Answer 21

No

Question 22

When markets are efficient, prices are the ___ useful signals in coordinating behavior

Answer 22

Most

Question 23

Second Welfare Theorem of Economics

Answer 23

Can get any point along utility possibility set with lump sum distribution, which solves distributional problems with direct transfers

Question 24

What is wasteful in terms of distribution of subsidies or discounts?

Answer 24

You may not reach a comparable and higher utility curve you would have received with a lump sum transfer

Question 25

3 market failures (0 is bonus)

Answer 25

Goods that don't have markets, imperfect competition, externalities, asymmetric information

Question 26

Inefficiency

Answer 26

Someone can be made better off without hurting someone else

Question 27

Inequity

Answer 27

Poor resource distribution

Question 28

Compensation Principle

Answer 28

Can the winners of a change compensate the losers monetarily and leave everyone better off?

Question 29

Social Marginal Cost of a resource

Answer 29

The next-best alternative use of that resource

Question 30

Voluntary unemployment

Answer 30

Value leisure more than wage