Choose the Correct Option for the Following Economic Theory Flashcards

economic theory developed to answer which question?
a.why does man have the will to power b.is greed good c.how are countless individuals led to do the right thing without ever caring about doing good? d.can we create a government strong enough to tie its own hands

since most people prefer more money to less the desire for more money... a.makes it difficult to induce people to cooperate b.makes it difficult to induce people to sacrifice for the larger public good c.implies people are living in a capitalist society d.can induce useful changes in behavior e. makes social order highly unstble and unpredictable

the behavior of people in government a. is not compatible with the existence of a market system b.is different from the behavior of people in business because the former aims at the general welfare rather than private welfare c.serves to balance private-sector behavior d. can be explained or understood by applying the same principles we use to predict the behavior of people in business e.is essentially different from market behavior

to economize means to a.conserve as much as possible for future use b.save rather than spend c. behave in a selfish rather than generous manner d.allocate available resources in a way that yields the most value to the economizer e.put economic theory to work

competition would probably be abolished if society could find a way to abolish a.scarcity b.inequality c.economists d.money

which of the following statements is true? a. competition is desireable and cooperation is undesireable b.capitalism has a tendency to eliminate scarcity c.competition could be eliminated if money were abolished d.greed must be present for a market transaction to be effective e.none of the above

a local newspaper headline states congress votes against presidents tax cut. an economist would interpret the statement as a. a shorthand way of saying more individuals in congress voted against the tax cut compared to the number of individuals who voted in favor of the tax cut b.a purely political issue not related to economics c.uninteresting, because all economists favor theories instead of reality d.a sad event because all economists favor tax cuts

the benefits of civilization are heavily dependent on a.agreement among the members of society on the best means for achieving their goals b.accurate numerical estimates by government officials of available resources and of basic consumption requirements c.agreement among the members of society on the goals to be pursued d.government planning for long-run economic growth e.the ability to induce other people to cooperate

economic theory suggests a.as a rule people cooperate more effectively when theyre selfish compared to when theyre generous b.social order is maintained only when people act in the public interest c.a great deal of effective cooperation can occur in the presence of minimal generosty and also without a great deal of govt guidance and control

which of the following is the most essential prerequisite for successful conduct of the game of urban traffic a.very similar attitudes towards risk the pleasures and pains of driving and so on b.extensive info on other drivers destinations and objectives c.an advance plan to coordinate the moves of participants d.drivers who care as much about other people's interests as their own e.general consensus on traffic rules

in a typical college classroom without a seating chart, dozens of students nevertheless occupy classroom seats with a minimum of confusion and disorder. economics explains the orderly process of seat selection by assuming students a.engage in entirely random decisions from which only divine intervention can generate order in the classroom b.know all the consequences of their actions and thus purposefully create an orderly classroom seating assignment even if the professor doesnt require one c.follow a simple perhaps even unwritten rule such as seats belong to the person who first occupies them d.trick question economics cannot deduce any sensible scientific claims about the behaviorof college students

in the economic way of thinking private property rights provide people with a.dependable info b.rules of the game c.incentives d.none of the above e.all of the above

economic way of thiniking is a.biased when itt is used to argue for particular policies b.unbiased because economics is a science c.unbiased insofar as its conclusions are drawn from actual facts d.a biased perspective at the present time and we should eliminate bias from economics e. a biased perspective but the existence of bias does not mean the discipline should be condemned

any scientific theory a.emphasizes some factors while slighting others b.offers no guarentee of being completely valid and true c.constains some biases d. is characterized by all of the above e.is characterized by none of the above

it is not uncommon for people who travel by bus inbosnia to keep the windows shut tight, even in warmer weather. passengers worry about drafts caused by an open window leading to head colds. apparenly folks would rather travel for hours in stuffy busses than take the chance in getting sick. supppose however the correlation between open windows and colds is only a coincidence and no casual connection between the two variables exists. then a. thee travelers are displaying mistaken reasoning b. the travelers are nevertheless acting in a way think yields them the greatest net advantage c.both a and b are true d.none of the above are true