GOVT 350 mid-term Questions with Verified
Correct Answer
Of the factors affecting economic growth in a nation, which is likely to be the most
important, according to Miller et al.?
Political and legal institutions in the country.
In several states, music therapists—who use music to aid in healing—have successfully
persuaded their state governments to license their occupation, so that no one who has not
satisfied the state's qualification requirements can advertise as a music therapist. Which
group would not benefit from these additional requirements?
Not: All groups would benefit from these additional requirements.
According to Marx, the value of a good is determined by
the amount of labor that went into its production.
Which of the following results are we most likely to see from farm subsidies?
Not: Lower prices of food.
According to Miller et al., wind energy is
less sustainable than natural gas and some other sources of energy, since building wind farms
and backup generators uses up more resources.
Which of the following is not consistent with the economic way of thinking?
Not: The relevant costs and benefits are the marginal (incremental) ones.
Raising the minimum wage, according to Miller et al., will have the effect of
increasing unemployment rates, particularly among the least skilled workers.
Which of the following is not consistent with Karl Marx's ideas?
, Not: Business owners try to increase their profits by paying workers as little as possible while
taking the "surplus value" for themselves.
In Iran, it is legal to sell a kidney. Suppose it became legal for Iranians to sell their kidneys
to non-Iranians for whatever price is negotiated between buyer and seller. Which of the
following would you expect to see as a consequence?
An increase in the price of kidneys in Iran
Common law systems, like those in the US, UK, Australia, Canada, and Israel:
reflect a conscious decision in favor of a limited role for government and emphasize the
importance of the judiciary in constraining the executive and legislative branches of government.
Which of the following do Miller, et al. say is likely to result from an increase in the
minimum wage?
Low-skill workers will find it harder to get a job.
In their chapter "The Mystery of Wealth," Miller et al. use Zimbabwe as an example of a
nation with destructive legal institutions. Which of the following policies are not among
those which have contributed to the decline of Zimbabwe from 1980 to recent years?
Replacement of a civil law system with a common law system.
Which of the following effects should we expect from subsidies to ethanol production,
according to the chapter "Ethanol Madness" in Miller et al.?
wealth gains by Brazilian sugar cane farmers.
When governments impose price ceilings, such as a rent control law,
Not: a surplus is created.
Economists typically believe that, when it comes to the market for drugs and alcohol,
Not: consumer behavior cannot be predicted because consumers are irrational.
Correct Answer
Of the factors affecting economic growth in a nation, which is likely to be the most
important, according to Miller et al.?
Political and legal institutions in the country.
In several states, music therapists—who use music to aid in healing—have successfully
persuaded their state governments to license their occupation, so that no one who has not
satisfied the state's qualification requirements can advertise as a music therapist. Which
group would not benefit from these additional requirements?
Not: All groups would benefit from these additional requirements.
According to Marx, the value of a good is determined by
the amount of labor that went into its production.
Which of the following results are we most likely to see from farm subsidies?
Not: Lower prices of food.
According to Miller et al., wind energy is
less sustainable than natural gas and some other sources of energy, since building wind farms
and backup generators uses up more resources.
Which of the following is not consistent with the economic way of thinking?
Not: The relevant costs and benefits are the marginal (incremental) ones.
Raising the minimum wage, according to Miller et al., will have the effect of
increasing unemployment rates, particularly among the least skilled workers.
Which of the following is not consistent with Karl Marx's ideas?
, Not: Business owners try to increase their profits by paying workers as little as possible while
taking the "surplus value" for themselves.
In Iran, it is legal to sell a kidney. Suppose it became legal for Iranians to sell their kidneys
to non-Iranians for whatever price is negotiated between buyer and seller. Which of the
following would you expect to see as a consequence?
An increase in the price of kidneys in Iran
Common law systems, like those in the US, UK, Australia, Canada, and Israel:
reflect a conscious decision in favor of a limited role for government and emphasize the
importance of the judiciary in constraining the executive and legislative branches of government.
Which of the following do Miller, et al. say is likely to result from an increase in the
minimum wage?
Low-skill workers will find it harder to get a job.
In their chapter "The Mystery of Wealth," Miller et al. use Zimbabwe as an example of a
nation with destructive legal institutions. Which of the following policies are not among
those which have contributed to the decline of Zimbabwe from 1980 to recent years?
Replacement of a civil law system with a common law system.
Which of the following effects should we expect from subsidies to ethanol production,
according to the chapter "Ethanol Madness" in Miller et al.?
wealth gains by Brazilian sugar cane farmers.
When governments impose price ceilings, such as a rent control law,
Not: a surplus is created.
Economists typically believe that, when it comes to the market for drugs and alcohol,
Not: consumer behavior cannot be predicted because consumers are irrational.
