Macro Econ. Test Bank #1
When Stossel was writing the book, what was Congress's approval rating?
a. 3%
b. 12%
c. 27%
d. 55%
e. 92% - ANSb. 12%
Which of the following factors will NOT affect supply?
a. A change in the costs of production.
b. A change in consumer tastes and preferences.
c. A change in taxes, subsidies or restrictions.
d. A change in technology.
e. None of the above will affect supply. - ANSb. A change in consumer tastes and preferences.
3. Shiny new projects like stadiums do not:
a. adversely affect local communities.
b. make opportunistic promises.
c. make neighborhoods poor.
d. pay taxpayers back.
e. make wrong decisions. - ANSe. make wrong decisions.
What does licensing create?
a. Better management.
b. More faithful employees.
c. Improved quality.
d. More competition.
e. Less competition. - ANSe. Less competition.
5. Stossel believes that OSHA regulation made no difference because:
a. regulations are dangerous.
b. workplace deaths increased when it was formed.
c. workplace deaths decreased nearly as fast without OSHA.
d. bosses stopped workers from doing any dangerous work.
e. All of the above. - ANSc. workplace deaths decreased nearly as fast without OSHA.
According to Stossel, what would happen if the government did not build/maintain public parks?
a. There would be no new parks, and the remaining parks would fall into disrepair.
b. Private investors would build and maintain parks.
c. They would be leveled for new more useful projects.
d. All of the above.
,e. None of the above. - ANSb. Private investors would build and maintain parks.
If a price floor is above market equilibrium it causes:
a. a surplus.
b. a shortage.
c. this to become the new market equilibrium.
d. excess demand for the good.
e. a distortion of the market, which may be either a surplus or a shortage. - ANSa. a surplus.
Which of the following will NOT cause a shift in the demand curve for houses?
a. A change in income.
b. A change in wealth.
c. A change in the price of condominiums.
d. A change in people's desire to live in houses rather than apartments.
e. A change in the price of houses. - ANSb. A change in wealth.
John Stossel believes that when there is a problem, the most efficient solution will be found by:
a. a bill passed by the President.
b. Congress.
c. consulting with a foreign government.
d. individuals.
e. None of that above, as there are no efficient solutions to our problems. - ANSd. individuals.
The mistaken idea that negative effects like earthquakes and terrorist attacks stimulate the
economy was recognized by _____ and referred to as the "broken window fallacy."
a. Aristotle
b. Frederic Bastiat
c. John Stossel
d. Karl Marx
e. John Maynard Keynes - ANSb. Frederic Bastiat
What is the main source of protection for consumers according to John Stossel?
a. Government regulation.
b. Labor unions.
c. Reputation of brands and businesses.
d. Less competition in markets.
e. None of the above. - ANSc. Reputation of brands and businesses.
What is a macroeconomic problem?
a. The full employment of resources.
b. Inflation.
c. Sustained economic growth.
d. Price stability.
e. Unlimited resources. - ANSb. Inflation.
, According to Stossel, a free market depends on:
a. property rights.
b. forced property trading.
c. selling rights controlled by the government.
d. living a perfect life.
e. people taking your stuff. - ANSa. property rights.
All else equal, the quantity demanded of a good, that consumers are willing to buy and able to
pay for, varies inversely with its price. This defines the:
a. law of demand.
b. law of supply.
c. consumer.
d. law of diminishing returns.
e. production possibilities curve. - ANSa. law of demand.
What is the rule (often cited in Europe) that declares no one sell foods, medicines, or anything
risky until science shows no harm will come from it?
a. The safe food and drug act.
b. The precautionary principle.
c. The safety measure.
d. The cautionary act.
e. The Euro-zone. - ANSa. The safe food and drug act.
Economics involves an understanding of:
a. Scarcity.
b. Choices.
c. Opportunity costs.
d. Rational self-interest.
e. All of the above. - ANSe. All of the above.
The demand curve is represented by:
a. a downward sloping line.
b. an upward sloping line.
c. a vertical line.
d. a horizontal line.
e. None of the above. - ANSa. a downward sloping line.
How does Stossel believe life can be made "fairer"?
a. By letting government make decisions for individuals.
b. By letting individuals make decisions for themselves.
c. By letting big corporations make decisions for individuals.
d. By getting rid of all government and all businesses.
When Stossel was writing the book, what was Congress's approval rating?
a. 3%
b. 12%
c. 27%
d. 55%
e. 92% - ANSb. 12%
Which of the following factors will NOT affect supply?
a. A change in the costs of production.
b. A change in consumer tastes and preferences.
c. A change in taxes, subsidies or restrictions.
d. A change in technology.
e. None of the above will affect supply. - ANSb. A change in consumer tastes and preferences.
3. Shiny new projects like stadiums do not:
a. adversely affect local communities.
b. make opportunistic promises.
c. make neighborhoods poor.
d. pay taxpayers back.
e. make wrong decisions. - ANSe. make wrong decisions.
What does licensing create?
a. Better management.
b. More faithful employees.
c. Improved quality.
d. More competition.
e. Less competition. - ANSe. Less competition.
5. Stossel believes that OSHA regulation made no difference because:
a. regulations are dangerous.
b. workplace deaths increased when it was formed.
c. workplace deaths decreased nearly as fast without OSHA.
d. bosses stopped workers from doing any dangerous work.
e. All of the above. - ANSc. workplace deaths decreased nearly as fast without OSHA.
According to Stossel, what would happen if the government did not build/maintain public parks?
a. There would be no new parks, and the remaining parks would fall into disrepair.
b. Private investors would build and maintain parks.
c. They would be leveled for new more useful projects.
d. All of the above.
,e. None of the above. - ANSb. Private investors would build and maintain parks.
If a price floor is above market equilibrium it causes:
a. a surplus.
b. a shortage.
c. this to become the new market equilibrium.
d. excess demand for the good.
e. a distortion of the market, which may be either a surplus or a shortage. - ANSa. a surplus.
Which of the following will NOT cause a shift in the demand curve for houses?
a. A change in income.
b. A change in wealth.
c. A change in the price of condominiums.
d. A change in people's desire to live in houses rather than apartments.
e. A change in the price of houses. - ANSb. A change in wealth.
John Stossel believes that when there is a problem, the most efficient solution will be found by:
a. a bill passed by the President.
b. Congress.
c. consulting with a foreign government.
d. individuals.
e. None of that above, as there are no efficient solutions to our problems. - ANSd. individuals.
The mistaken idea that negative effects like earthquakes and terrorist attacks stimulate the
economy was recognized by _____ and referred to as the "broken window fallacy."
a. Aristotle
b. Frederic Bastiat
c. John Stossel
d. Karl Marx
e. John Maynard Keynes - ANSb. Frederic Bastiat
What is the main source of protection for consumers according to John Stossel?
a. Government regulation.
b. Labor unions.
c. Reputation of brands and businesses.
d. Less competition in markets.
e. None of the above. - ANSc. Reputation of brands and businesses.
What is a macroeconomic problem?
a. The full employment of resources.
b. Inflation.
c. Sustained economic growth.
d. Price stability.
e. Unlimited resources. - ANSb. Inflation.
, According to Stossel, a free market depends on:
a. property rights.
b. forced property trading.
c. selling rights controlled by the government.
d. living a perfect life.
e. people taking your stuff. - ANSa. property rights.
All else equal, the quantity demanded of a good, that consumers are willing to buy and able to
pay for, varies inversely with its price. This defines the:
a. law of demand.
b. law of supply.
c. consumer.
d. law of diminishing returns.
e. production possibilities curve. - ANSa. law of demand.
What is the rule (often cited in Europe) that declares no one sell foods, medicines, or anything
risky until science shows no harm will come from it?
a. The safe food and drug act.
b. The precautionary principle.
c. The safety measure.
d. The cautionary act.
e. The Euro-zone. - ANSa. The safe food and drug act.
Economics involves an understanding of:
a. Scarcity.
b. Choices.
c. Opportunity costs.
d. Rational self-interest.
e. All of the above. - ANSe. All of the above.
The demand curve is represented by:
a. a downward sloping line.
b. an upward sloping line.
c. a vertical line.
d. a horizontal line.
e. None of the above. - ANSa. a downward sloping line.
How does Stossel believe life can be made "fairer"?
a. By letting government make decisions for individuals.
b. By letting individuals make decisions for themselves.
c. By letting big corporations make decisions for individuals.
d. By getting rid of all government and all businesses.
