PUP 3002 - Chapter 5-8 Quizzes Questions and Answers Graded A+
Ch.5 - In the United States, what is responsible for managing the supply of money in the
economy? - Answers The Federal Reserve Board
Ch.5 - _____ has to do with taxing and spending. - Answers Fiscal Policy
Ch.5 - What is the Nash equilibrium of the Ultimatum game where player 1 starts with $10 and
player 2 starts with $0? - Answers player 1 receives $9 and player 2 receives $1
Ch.5 - The increase in the market value of the goods and services produced by an economy is -
Answers economic growth.
Ch.5 - Card and Krueger (1994, 2000) studied the effects of minimum wage on employment in
the fast food industry. They found evidence that an increase to the minimum wage resulted in -
Answers an increase in employment.
Ch.5 - _____ involves taking from the people who have more income and giving to the people
who do not have enough income. - Answers Redistribution
Ch.5 - During a recession, the Keynesian solution is for government spending to - Answers
increase.
Ch.5 - Most people receive _____ in social security benefits compared to the contributions that
they put in. - Answers more
Ch.5 - Thousands of experimental studies have put to test the expectations of the Ultimatum
game and reveal that contributions are _____ the model predicts. - Answers more than
Ch.5 - During a recession, the Classical solution is for government spending to - Answers
decrease
Ch.6 - When herbicides and fertilizers from farms wash off and pollute streams, the agriculture
sector is causing what type of market failure? - Answers Negative externality
Ch.6 - An ____ is an action that a principal takes prior to an agent's action to incentivize a
desired behavior. - Answers ex-ante tactic
Ch.6 - The negative Pigouvian tax is a - Answers subsidy.
Ch.6 - What is an outright ban or limitation on the amount of a given externality that may be
produced? - Answers output standard
Ch.6 - What refers to the level of support that a citizen assigns to a specific policy? - Answers
Direction
Ch.6 - What refers to how strongly a citizen feels about a given issue? - Answers Intensity
Ch.5 - In the United States, what is responsible for managing the supply of money in the
economy? - Answers The Federal Reserve Board
Ch.5 - _____ has to do with taxing and spending. - Answers Fiscal Policy
Ch.5 - What is the Nash equilibrium of the Ultimatum game where player 1 starts with $10 and
player 2 starts with $0? - Answers player 1 receives $9 and player 2 receives $1
Ch.5 - The increase in the market value of the goods and services produced by an economy is -
Answers economic growth.
Ch.5 - Card and Krueger (1994, 2000) studied the effects of minimum wage on employment in
the fast food industry. They found evidence that an increase to the minimum wage resulted in -
Answers an increase in employment.
Ch.5 - _____ involves taking from the people who have more income and giving to the people
who do not have enough income. - Answers Redistribution
Ch.5 - During a recession, the Keynesian solution is for government spending to - Answers
increase.
Ch.5 - Most people receive _____ in social security benefits compared to the contributions that
they put in. - Answers more
Ch.5 - Thousands of experimental studies have put to test the expectations of the Ultimatum
game and reveal that contributions are _____ the model predicts. - Answers more than
Ch.5 - During a recession, the Classical solution is for government spending to - Answers
decrease
Ch.6 - When herbicides and fertilizers from farms wash off and pollute streams, the agriculture
sector is causing what type of market failure? - Answers Negative externality
Ch.6 - An ____ is an action that a principal takes prior to an agent's action to incentivize a
desired behavior. - Answers ex-ante tactic
Ch.6 - The negative Pigouvian tax is a - Answers subsidy.
Ch.6 - What is an outright ban or limitation on the amount of a given externality that may be
produced? - Answers output standard
Ch.6 - What refers to the level of support that a citizen assigns to a specific policy? - Answers
Direction
Ch.6 - What refers to how strongly a citizen feels about a given issue? - Answers Intensity
