Intuition tempts us to believe that the "Food Police" are there to protect us where in reality:

Intuition tempts us to believe that the "Food Police" are there to protect us where in reality:

a. they often cause more harm than they protect us from.
b. they are slowly controlling our lifestyles through food.
c. they do not care about the individual.
d. they are taking away our ability to choose what we eat.
e. All of the above.


Answer: e. All of the above.

Why doesn't America irradiate more food?

Why doesn't America irradiate more food?

a. This technology costs a lot of money.
b. It's is dangerous.
c. People's intuition leads them to believe that radiation is bad for food.
d. Irradiation destroys the quality of the food.
e. None of the above.


Answer: d. Irradiation destroys the quality of the food.

John Stossel's "racist" bake sale:

John Stossel's "racist" bake sale:

a. made $200.
b. started an affirmative action conversation.
c. proves that he is a racist.
d. was on a college campus.
e. didn't get much reaction.


Answer: d. was on a college campus.

What state measured their student's BMI and reported it to their parents?

What state measured their student's BMI and reported it to their parents?

a. Arizona
b. Oregon
c. Florida
d. California
e. Arkansas


Answer: e. Arkansas

In Florida an Honor student (Lindsay Brown) got arrested for having a ______ in her car and was handcuffed and hauled off to county jail.

In Florida an Honor student (Lindsay Brown) got arrested for having a ______ in her car and was handcuffed and hauled off to county jail.

a. gun
b. bomb
c. butter knife
d. sword
e. banned book


Answer: c. butter knife

According to Stossel, because guns sometimes save lives, gun laws:

According to Stossel, because guns sometimes save lives, gun laws:

a. are unnecessary.
b. should be more lenient.
c. should be more strict.
d. can cost lives.
e. should not be passed.


Answer: e. should not be passed.

What is a true statement according to Stossel?

What is a true statement according to Stossel?

a. The FDA can declare BPA a perfectly safe product.
b. All things natural are safe.
c. BPA is a huge threat to our health.
d. The FDA can't declare BPA a perfectly safe product because nothing is perfectly safe.
e. None of the above.


Answer: a. The FDA can declare BPA a perfectly safe product.

According to John Stossel there is something unsafe about our (America's) food, but it's not the _____, it's the _____.

According to John Stossel there is something unsafe about our (America's) food, but it's not the _____, it's the _____.

a. chemicals; bacteria
b. bacteria; chemicals
c. carbon monoxide; radiation
d. radiation; BPA
e. BPA; corn


Answer: a. chemicals; bacteria

According to Stossel, what happens to children in a world with zero tolerance toward weapons?

According to Stossel, what happens to children in a world with zero tolerance toward weapons?

a. Zero tolerance leads to zero common sense.
b. There is no crime.
c. There is less homicide.
d. There is no effect.
e. None of the above.


Answer: a. Zero tolerance leads to zero common sense.

What is irradiation?

What is irradiation?

a. the process of moving food through a stream of ionized energy.
b. the process by which food is contaminated by human hands.
c. the process used to heal cancer.
d. the process by which freedom is irradiated by the government.
e. the process of deciding which risks are worth taking.


Answer: a. the process of moving food through a stream of ionized energy.

Our intuition tempts us to believe that:

Our intuition tempts us to believe that:

a. government has no rational way of deciding which risk are worth taking.
b. zero tolerance leads to zero common sense.
c. gambling is addictive and leads to broken marriages and bankruptcies, so we cannot trust adults to gamble responsibly.
d. protection kills people.
e. All of the above.


Answer: c. gambling is addictive and leads to broken marriages and bankruptcies, so we cannot trust adults to gamble responsibly.

Some risk takers that would likely be put punished today according to Stossel include:

Some risk takers that would likely be put punished today according to Stossel include:

a. Ferdinand Magellan
b. Madame Curie
c. Sir Edmund Hillary
d. All of the above.
e. None of the above.


Answer: d. All of the above.

For years, one city had the toughest gun laws in the U.S. but was still called the "murder capital of the U.S." What city was this?

For years, one city had the toughest gun laws in the U.S. but was still called the "murder capital of the U.S." What city was this?

a. Washington D.C.
b. Dallas.
c. Tampa Bay.
d. Sacramento.
e. Albuquerque.


Answer: a. Washington D.C.

What American city decided to completely ban trans fats?

What American city decided to completely ban trans fats?

a. San Diego.
b. Seattle.
c. New York City.
d. Phoenix.
e. No cities have banned trans fats.


Answer: c. New York City.

The Centers for Disease Control and Prevention says that that _____ Americans are poisoned every week by something they ate.

The Centers for Disease Control and Prevention says that that _____ Americans are poisoned every week by something they ate.

a. 1,000
b. 20,000
c. 100,000
d. 1 million
e. 1 billion


Answer: d. 1 million

Stossel believes that in a free country:

Stossel believes that in a free country:

a. you should have fewer choices.
b. the government should do everything it can to protect you.
c. the government should create more laws for industries.
d. the government should always look for ways to raise more taxes.
e. you should have the right to make foolish choices.


Answer: e. you should have the right to make foolish choices.

According to Stossel, what do gun laws do?

According to Stossel, what do gun laws do?

a. Decrease crime.
b. Save lives.
c. Cost lives.
d. Both A and B.
e. None of the above.


Answer: c. Cost lives.

John Stossel believes that when there is a problem, the most efficient solution will be found by:

John Stossel believes that when there is a problem, the most efficient solution will be found by:

a. a bill proposed by the President.
b. a bill passed by the Congress.
c. the intervention of a foreign government.
d. the intervention of the United Nations.
e. individuals.


Answer: e. individuals.

According to Stossel, what is wrong with making certain man-made chemicals illegal just because they are known carcinogens?

According to Stossel, what is wrong with making certain man-made chemicals illegal just because they are known carcinogens?

a. Natural chemicals can cause cancer too.
b. It is typically only harmful in large doses.
c. Man-made chemicals are more efficient.
d. All of the above.
e. None of the above.


Answer: d. All of the above.

According to Stossel, what is the benefit of irradiating food?

According to Stossel, what is the benefit of irradiating food?

a. It lasts longer.
b. It kills bacteria.
c. It increases the size of the food.
d. All of the above.
e. Only A and B are correct.


Answer: e. Only A and B are correct.

How many states allow adults to carry concealed handguns today?

How many states allow adults to carry concealed handguns today?

a. 20
b. 30
c. 40
d. 50
e. All 57 allow for concealed carry.


Answer: c. 40

National income= wages + rent + ____+ interest + Indirect Business Tax

National income= wages + rent + ____+ interest + Indirect Business Tax

a. capital
b. spending
c. profit
d. Both A and C are correct.
e. Both B and C are correct.


Answer: c. profit

Which sector takes up the largest share of the GDE?

Which sector takes up the largest share of the GDE?

a. Exports.
b. Personal consumption.
c. Government expenditures.
d. Gross business expenitures.
e. Military expenditures.


Answer: b. Personal consumption.

Private Product Remaining (PPR) was created by:

Private Product Remaining (PPR) was created by:

a. John Bates Clark.
b. Walter Adams.
c. John Maynard Keynes.
d. Mark Skousen.
e. Murray Rothbard.


Answer: e. Murray Rothbard.

In a country, the GDP is $8000, consumption is $3800, government expenditure is $1000 and net exports are $500. So, investment must be:

In a country, the GDP is $8000, consumption is $3800, government expenditure is $1000 and net exports are $500. So, investment must be:

a. $2700.
b. $3200.
c. $4800.
d. $5300.
e. $8000.


Answer: a. $2700.

There are only two products in a country, bread and apples. In 2013, there are 200 loaves of bread that sell for $1.50 each and 450 apples that sell for $1 each. From this we can determine that the nominal GDP in 2013 is:

There are only two products in a country, bread and apples. In 2013, there are 200 loaves of bread that sell for $1.50 each and 450 apples that sell for $1 each. From this we can determine that the nominal GDP in 2013 is:

a. $200
b. $450
c. $650
d. $750
e. $875


Answer: d. $750

Which of the following is not a part of Dr. Foster's solution to problems with accurately interpreting GDP?

Which of the following is not a part of Dr. Foster's solution to problems with accurately interpreting GDP?

a. Make simple rules.
b. Stop collecting "official" data.
c. Enforce property rights.
d. Eliminate economic policies.
e. Increase taxes to provide more manpower to doing these calculations correctly.


Answer: e. Increase taxes to provide more manpower to doing these calculations correctly.

What economist maintained that because government expenditures are based on coercion, none of it should be included in calculating our GDP?

What economist maintained that because government expenditures are based on coercion, none of it should be included in calculating our GDP?

a. John Stossel.
b. Robert Higgs.
c. Murray Rothbard.
d. Burton Abrams.
e. John Maynard Keynes.


Answer: c. Murray Rothbard.

Government expenditures make up approximately what percentage of the GDP?

Government expenditures make up approximately what percentage of the GDP?

a. 75%
b. 50%
c. 35%
d. 25%
e. 10%


Answer: c. 35%

Of the following, what is the smallest component of GDP?

Of the following, what is the smallest component of GDP?

a. Net Exports.
b. Consumption.
c. Investment.
d. The change in business inventories.
e. Spending on services by consumers.


Answer: d. The change in business inventories.

NNP subtracts out _____ from GDP.

NNP subtracts out _____ from GDP.

a. net investment.
b. depreciation
c. consumers savings.
d. income inflow - income outflow.
e. None of the above.


Answer: b. depreciation

Does GDP measure market prices?

Does GDP measure market prices?

a. No; government is valued at cost.
b. No; all "expenditures" are imputed.
c. No, although it is used as a proxy.
d. Yes.
e. None of the above.


Answer: c. No, although it is used as a proxy.

Durable goods include:

Durable goods include:

a. Electronics.
b. Cars.
c. Furniture.
d. All of the above.
e. None of the above.


Answer: d. All of the above.

What does MEW stand for?

What does MEW stand for?

a. Mathematic Education Worldwide.
b. Measure of Economic Welfare.
c. Multiple Entries of Work.
d. Mining, Economics, War.
e. None of the above.


Answer: b. Measure of Economic Welfare.

GDP measures economic activity, but doesn't include:

GDP measures economic activity, but doesn't include:

a. illegal production.
b. leisure.
c. household production.
d. the underground economy.
e. All of the above.


Answer: e. All of the above.

Why do government workers like cooks, janitors, and landscape architects get paid more compared to the same workers in the private sector, according to Stossel?

Why do government workers like cooks, janitors, and landscape architects get paid more compared to the same workers in the private sector, according to Stossel?

a. They negotiate with bosses that don't pay bills.
b. Government jobs have harsher working conditions.
c. Government workers are more skilled.
d. Private sector jobs don't produce as much revenue.
e. Government jobs have less stability.


Answer: a. They negotiate with bosses that don't pay bills.

In Stossel's book he talks about one medicine in Canada that offered easy access to cutting edge technology. Who were these clinics open too?

In Stossel's book he talks about one medicine in Canada that offered easy access to cutting edge technology. Who were these clinics open too?

a. Humans.
b. Animals.
c. Aliens.
d. A and B.
e. None of the above.


Answer: d. A and B.

What is Stossel's argument about why the Americans with Disabilities Act is hurtful?

What is Stossel's argument about why the Americans with Disabilities Act is hurtful?

a. It makes employers hesitant to hire those with disabilities.
b. Employees are viewed as possible "time bombs."
c. It can hurt businesses.
d. It sends a destructive message to the disabled that they always need special treatment.
e. All of the above


Answer: e. All of the above

What does OSHA stand for?

What does OSHA stand for?

a. Occupation Safety Hazards Administration.
b. Occupation Safety Hazards Alliance.
c. Occupation Safety Health Alliance.
d. Occupation Safety and Health Administration.
e. Occupation Safety and Health Alliance.


Answer: d. Occupation Safety and Health Administration.

What is one way government keeps health care costs down, according to Stossel?

What is one way government keeps health care costs down, according to Stossel?

a. Let people wait for a long time for care.
b. Make people pay more money.
c. Purchase some cheaper medical equipment.
d. Hire some doctors from other countries.
e. None of the above.


Answer: e. None of the above.

According to Stossel, reality taught him that:

According to Stossel, reality taught him that:

a. pursuit of profit is what brings innovation.
b. it is time to start treating the elderly better.
c. government already dominates health care---and that's the problem.
d. Both A and B are correct.
e. Both A and C are correct.


Answer: e. Both A and C are correct.

According to Stossel, what percentage of the workforce makes more than minimum wage?

According to Stossel, what percentage of the workforce makes more than minimum wage?

a. 50%
b. 10%
c. 75%
d. 95%
e. 100%


Answer: c. 75%

Stossel says that "Governments, unlike private employers, don't face competition." Furthermore, politicians face competition every 2-4 years, whereas the private employers face competition ____.

Stossel says that "Governments, unlike private employers, don't face competition." Furthermore, politicians face competition every 2-4 years, whereas the private employers face competition ____.

a. every month.
b. every week.
c. every minute.
d. every year.
e. never.


Answer: c. every minute.

Which was NOT an example of something Stossel says unions do that appear to be beneficial, but do not actually help workers?

Which was NOT an example of something Stossel says unions do that appear to be beneficial, but do not actually help workers?

a. restrict unpaid internships.
b. allow workers to strike.
c. limit right to fire.
d. outlaw wages below $7.25 per hour.
e. All of the above.


Answer: a. restrict unpaid internships.

According to Stossel, the biggest advantage of allowing the free market to provide healthcare is:

According to Stossel, the biggest advantage of allowing the free market to provide healthcare is:

a innovation.
b. high prices.
c. fewer doctors.
d. longer waits.
e. free insurance.


Answer: a innovation.

Did the creation of OSHA really reduce workplace fatalities?

Did the creation of OSHA really reduce workplace fatalities?

a. Yes, according to Clinton's OSHA boss.
b. Yes, but only a slight change.
c. No, the slope of the graph showing reduced fatalities declined at the same rate after OSHA was created.
d. No, it increased the number of deaths.
e. Both A and C are correct.


Answer: c. No, the slope of the graph showing reduced fatalities declined at the same rate after OSHA was created.

What do safety regulations do according to Stossel?

What do safety regulations do according to Stossel?

a. Protect people.
b. Stop people from suing a business.
c. Keep people from injuring themselves.
d. Stop innovation.
e. All of the above.


Answer: d. Stop innovation.

Stossel believes what about the government and the elderly

Stossel believes what about the government and the elderly?

a. There are too many elderly in the government.
b. The government needs to do less for the elderly.
c. The government needs to do more for the elderly.
d. The government doesn't do anything for the elderly.
e. The elderly should not try to help the government.


Answer: b. The government needs to do less for the elderly.

In 1990, Congress passed what act into law?

In 1990, Congress passed what act into law?

a. Civil Rights Act.
b. Social Security Act.
c. Americans with Disabilities Act.
d. Gender Equality Act.
e. The Stamp Act.


Answer: c. Americans with Disabilities Act.

A "bond" is:

A "bond" is:

a. a certificate of indebtedness
b. a claim to partial ownership of a firm
c. a stock of equipment
d. a stock of structures
e. none of the above


Answer: a. a certificate of indebtedness

The stock of plants, equipment, inventory, and other resources of production is called:

The stock of plants, equipment, inventory, and other resources of production is called:

a. depreciation.
b. net investment.
c. final goods.
d. capital.
e. None of the above.


Answer: d. capital.

A recession occurs when real output falls in how many consecutive quarters?

A recession occurs when real output falls in how many consecutive quarters?

a. 1
b. 2
c. 3
d. 4
e. 5


Answer: b. 2

If the government declares that workers can only work 20 hours a week, how does this affect output per worker?

If the government declares that workers can only work 20 hours a week, how does this affect output per worker?

a. Output per worker goes down.
b. Output per worker increases.
c. Output is not affected.
d. Output will change, but in an uncertain direction.
e. None of the above.


Answer: a. Output per worker goes down.

GDP includes the value of:

GDP includes the value of:

a. used cars.
b. new clothes.
c. grain that makes bread.
d. engines shipped in from Mexico last year and finally sold this year.
e. garage sale items.


Answer: b. new clothes.

What does GDP stand for?

What does GDP stand for?

a. Great Domestic Product
b. Gross Domestic Product
c. Gross Domestic Produce
d. Greatest Domestic Product
e. None of the above


Answer: b. Gross Domestic Product

Which of the following can cause a country's PPF to shift?

Which of the following can cause a country's PPF to shift?

a. Innovation.
b. More investment.
c. Increased division of labor.
d. Additional inputs.
e. All of the above.


Answer: e. All of the above.

According to the text capital is:

According to the text capital is:

a. a claim to ownership in a firm.
b. knowledge and skills that make people more productive.
c. a stock of equipment and structures used to produce goods and services.
d. a certificate of indebtedness.
e. None of the above.


Answer: c. a stock of equipment and structures used to produce goods and services.

Total spending equals total income equals:

Total spending equals total income equals:

a. total deficit in the government's budget.
b. total cost.
c. total product in the foreign sector.
d. total savings.
e. total output.


Answer: d. total savings.

Durable goods are illustrated by which of the following?

Durable goods are illustrated by which of the following?

a. cars and household appliances.
b. food.
c. healthcare.
d. insurance.
e. gasoline.


Answer: a. cars and household appliances.

Which equation is used to determine net investment?

Which equation is used to determine net investment?

a. GDP + Depreciation
b. Gross Investment - Deprecation
c. Net Investment - GNP
d. GDP - Net National Product
e. Net National Product + Gross Investment


Answer: b. Gross Investment - Deprecation

What term represents a decline in the value of an asset over a given time, usually a year?

What term represents a decline in the value of an asset over a given time, usually a year?

a. Capital
b. Final good
c. Depreciation
d. Net investment
e. None of the above.


Answer: c. Depreciation

What is the difference between nominal GDP and real GDP?

What is the difference between nominal GDP and real GDP?

a. Nominal measures money, real measures products.
b. Nominal is used for exports, real is used for imports.
c. Nominal is measured by the federal government, real is measured by state governments.
d. Nominal measures GDP at current prices, real measures GDP at a constant price over the years.
e. None of the above.


Answer: d. Nominal measures GDP at current prices, real measures GDP at a constant price over the years.

Human Capital is the knowledge and skills that make people more _______.

Human Capital is the knowledge and skills that make people more _______.

a. productive.
b. lazy.
c. greedy.
d. intuitive .
e. inventive.


Answer: a. productive.

Which of the following are considered financial intermediaries?

Which of the following are considered financial intermediaries?

a. Businesses.
b. Banks.
c. Governments.
d. Households.
e. All of the above.


Answer: b. Banks.

Which of the following best describes the GDP?

Which of the following best describes the GDP?

a. A measure of a nation's total output.
b. A measure of how much money a country spends.
c. The amount of debt a country has.
d. The amount of profit a country has gained.
e. A measure of how much money a country a country lost.


Answer: a. A measure of a nation's total output.

What was Ludwig von Mises' main contribution to business cycle theory?

What was Ludwig von Mises' main contribution to business cycle theory?

a. Lack of confidence reduces spending, which leads to the faltering of the economy.
b. The theory of long run wages at subsistence level.
c. Recurrent patterns of business cycles that are highly predictable.
d. Depressions are due to "credit bubbles."
e. None of the above.


Answer: d. Depressions are due to "credit bubbles."

Which of the following is not included in Gross Domestic Product?

Which of the following is not included in Gross Domestic Product?

a. Consumption spending.
b. Business investment spending.
c. Government spending on goods and services.
d. Net exports.
e. Government spending on transfer payments.


Answer: e. Government spending on transfer payments.

Which of the following economic philosophers believes that to counter a depression, the government needs to raise the money supply?

Which of the following economic philosophers believes that to counter a depression, the government needs to raise the money supply?

a. Lord J.M Keynes.
b. Milton Friedman.
c. Ludwig von Mises.
d. John Stossel.
e. Thomas Jefferson.


Answer: b. Milton Friedman.

What is the national output of goods and services called when valued at current prices?

What is the national output of goods and services called when valued at current prices?

a. Gross national product.
b. Nominal GDP.
c. Real GDP.
d. Net National Product.
e. Gross Expenditures.


Answer: b. Nominal GDP.

Who believed in the theory that Capitalism produces surplus value?

Who believed in the theory that Capitalism produces surplus value?

a. Karl Marx.
b. Thomas Malthus.
c. Milton Friedman.
d. Joseph Schumpeter.
e. Lord J.M. Keynes.


Answer: a. Karl Marx.

Investment spending can be funded from:

Investment spending can be funded from:

a. government sector savings.
b. private savings.
c. foreign savings.
d. All of the above.
e. None of the above.


Answer: d. All of the above.

Of the four sectors of the economy, which can have a negative effect on our GDP?

Of the four sectors of the economy, which can have a negative effect on our GDP?

a. Households.
b. Businesses.
c. Government.
d. Foreign.
e. Financial.


Answer: d. Foreign.

The GDP for the U.S. in 2012 was about:

The GDP for the U.S. in 2012 was about:

a. 15.7 billion.
b. $157 billion.
c. 1.57 trillion.
d. $15.7 trillion.
e. $157 trillion.


Answer: d. $15.7 trillion.

What are the different sectors within the completed circular flow model?

What are the different sectors within the completed circular flow model?

a. Government, household, business.
b. Household, business, financial intermediaries.
c. Government, household, business, foreign trade.
d. Household, business, government, financial intermediaries.
e. Household, business, government, financial intermediaries and the foreign sector.


Answer: e. Household, business, government, financial intermediaries and the foreign sector.

The bottom most point of the business cycle is called the:

The bottom most point of the business cycle is called the:

a. Trough .
b. Peak.
c. Recovery.
d. Contraction.
e. Gutter.


Answer: a. Trough

Which of the following is a characteristic of Say's Law?

Which of the following is a characteristic of Say's Law?

a. Excess supply is impossible in every sector of the economy.
b. Bubbles are perpetuated by the Federal Reserve.
c. All production can go unsold.
d. Government must control the money supply.
e. Excess demand develops across the entire economy.


Answer: a. Excess supply is impossible in every sector of the economy.

What does Ludwig Von Mises say causes depressions?

What does Ludwig Von Mises say causes depressions?

a. A fall in the money supply.
b. The creation of a credit bubble.
c. The loss of "animal spirits."
d. Overproduction.
e. Underconsumption.


Answer: b. The creation of a credit bubble.

What flow in the circular flow model cannot be literally measured?

What flow in the circular flow model cannot be literally measured?

a. Taxes flowing to government.
b. Income flowing to households.
c. Expenditures flowing to businesses.
d. The flow of goods and services to households.
e. The money flow to the foreign sector.


Answer: d. The flow of goods and services to households.

Choose the correct order of the phases in a business cycle.

Choose the correct order of the phases in a business cycle.

a. Contraction, Peak, Recovery, Trough.
b. Recovery, Contraction, Peak, Trough.
c. Peak, Contraction, Trough, Recovery.
d. Peak, Trough, Contraction, Recovery.
e. None of the above.


Answer: c. Peak, Contraction, Trough

Total expenditures are the sum of government, net exports, investment, and:

Total expenditures are the sum of government, net exports, investment, and:

a. foreign spending.
b. bank balances.
c. imports.
d. consumption.
e. used goods.


Answer: d. consumption.

GDP is calculated how often?

GDP is calculated how often?

a. Monthly.
b. Bi-weekly.
c. Semiannually.
d. Quarterly.
e. On an irregular basis.


Answer: d. Quarterly.

Which of these is considered a "transfer payment"?

Which of these is considered a "transfer payment"?

a. Food Stamps.
b. Medicare.
c. Social Security.
d. Welfare.
e. All of the above.


Answer: e. All of the above.

What are the macroeconomic goal(s)?

What are the macroeconomic goal(s)?

a. Full employment of resources
b. Sustained economic growth
c. Price stability
d. All of the above
e. None of the above.


Answer: d. All of the above

What flows are shown in the circular flow model?

What flows are shown in the circular flow model?

a. money flows.
b. real flows.
c. profit flows.
d. all of the above.
e. Only A and B are correct.


Answer: e. Only A and B are correct.

According to Joseph Schumpeter, a medium business cycle lasts how long?

According to Joseph Schumpeter, a medium business cycle lasts how long?

a. 1-3 years.
b. 7-10 years.
c. 20-30 years.
d. 40-60 years.
e. None of the above.


Answer: b. 7-10 years.

Which of the following is calculated in GDP?

Which of the following is calculated in GDP?

a. Investment.
b. Government spending.
c. Net exports.
d. Consumption.
e. All of the above.


Answer: e. All of the above.

In economics, the demand is a representation of _____ and the supply is a representation of _____.

In economics, the demand is a representation of _____ and the supply is a representation of _____.

a. efficiency; consumers
b. consumers; cash
c. consumers; producers
d. producers; efficiency
e. money; production


Answer: c. consumers; producers

Which is not one of the three primary economic questions?

Which is not one of the three primary economic questions?

a. For Whom to produce?
b. Why do we produce?
c. What to produce?
d. How to produce?
e. None of the above are primary economic questions.


Answer: b. Why do we produce?

Keynesian economics came about during the:

Keynesian economics came about during the:

a. early 1800's.
b. late 1800's.
c. the Great Depression.
d. the 1980's.
e. The 1700's.


Answer: c. the Great Depression.

According to Stossel licensing:

According to Stossel licensing:

a. is unnecessary.
b. insures the quality of services.
c. hurts consumers by limiting competition.
d. Both A and C are correct.
e. Both b and C are correct.


Answer: d. Both A and C are correct.

When the quantity demanded equals the quantity supplied this is known as:

When the quantity demanded equals the quantity supplied this is known as:

a. a perfect balance.
b. the market equilibrium.
c. the law of supply.
d. a price floor.
e. a price ceiling.


Answer: b. the market equilibrium.

According to Stossel, who was responsible for the construction of the subway systems in New York?

According to Stossel, who was responsible for the construction of the subway systems in New York?

a. Charities.
b. Government.
c. The private sector.
d. Taxpayers.
e. None of the above.


Answer: c. The private sector.

What does the Production Possibilities Curve show?

What does the Production Possibilities Curve show?

a. Scarcity.
b. Unemployment.
c. Choice.
d. Economic growth.
e. All of the above.


Answer: e. All of the above.

The quantity demanded of a good that consumers are willing to buy and able to pay for when all else is equal varies inversely with its price is:

The quantity demanded of a good that consumers are willing to buy and able to pay for when all else is equal varies inversely with its price is:

a. the Law of Success.
b. the Law of Demand.
c. the Law of Supply.
d. the Law of the Market.
e. the Rule of Law.


Answer: b. the Law of Demand.

Tom can produce 4 paper flowers or 2 tomatoes in one hour. What is his opportunity cost of producing one tomato?

Tom can produce 4 paper flowers or 2 tomatoes in one hour. What is his opportunity cost of producing one tomato?

a. 1 paper flower.
b. 2 paper flowers.
c. 3 paper flowers.
d. 4 paper flowers.
e. 1 tomato.


Answer: b. 2 paper flowers.

Which of the following is an economic school of thought?

Which of the following is an economic school of thought?

a. Classical.
b. Keynesian.
c. Monetarists.
d. Austrian.
e. All of the above.


Answer: e. All of the above.

Unlike Hong Kong, America is a much more difficult place to start a business because of:

Unlike Hong Kong, America is a much more difficult place to start a business because of:

a regulation.
b our high standard of living.
c democracy.
d our unique work ethic.
e supply and demand.


Answer: a regulation

Who was the economist who won the 2009 Nobel prize for demonstrating that politicians and bureaucrats are not as good at solving problems as regular people?

Who was the economist who won the 2009 Nobel prize for demonstrating that politicians and bureaucrats are not as good at solving problems as regular people?

a. Elinor Ostrom.
b. Milton Friedman.
c. John Nash Jr.
d. Sveriges Riksbank.
e. J. B. Say.


Answer: a. Elinor Ostrom.

Which of these factors affects supply?

Which of these factors affects supply?

a. A change in the costs of production.
b. A change in technology.
c. A change in taxes, subsidies/restrictions.
d. Other (price of other goods; expectations; size of market).
e. All the above.


Answer: e. All the above.

What does the acronym "TANSTAAFL" stand for?

What does the acronym "TANSTAAFL" stand for?

a. "There ain't no such thing as a fresh lunch."
b. "There ain't no such thing as a friendly lay-off."
c. "There ain't no such thing as a free lunch."
d. "There ain't no such thing as a fair lay-off."
e. "Today ain't never STAAFL."


Answer: c. "There ain't no such thing as a free lunch."

Since the 1960's, the Federal Register which publishes new regulations added by Congress, has doubled in size. Today, these regulatory rules in the Codes of Final Regulations is about how many pages long?

Since the 1960's, the Federal Register which publishes new regulations added by Congress, has doubled in size. Today, these regulatory rules in the Codes of Final Regulations is about how many pages long?

a. 1,600
b. 16,000
c. 160,000
d. 1,600,000
e. 16,000,000


Answer: c. 160,000

According to Stossel, is it good when the government tries to make life fairer?

According to Stossel, is it good when the government tries to make life fairer?

a. Yes, The market prospers.
b. Yes, individuals cannot make good decisions in the market.
c. No, individuals do make better choices than the government.
d. Yes, it makes it easier for business to thrive.
e. No, the need for monopolies is necessary.


Answer: c. No, individuals do make better choices than the government.

How is it possible for societies to acquire more goods than they can produce?

How is it possible for societies to acquire more goods than they can produce?

a. They can decide to overproduce.
b. By consuming less.
c. Through trade.
d. By allowing workers more time off.
e. All of the above.


Answer: c. Through trade.

Which of the following can be described as a 'man-made' business cycle theories?

Which of the following can be described as a 'man-made' business cycle theories?

a. population pressures theory.
b. innovation theory.
c. under-consumption theory.
d. central banking theory.
e. All of the above.


Answer: e. All of the above.

Acting in one's own _____ promotes our economy as a whole.

Acting in one's own _____ promotes our economy as a whole.

a. self-awareness.
b. consciousness.
c. self-interest.
d. comfort zone.
e. political view.


Answer: c. self-interest.

Who is charged with controlling the money supply?

Who is charged with controlling the money supply?

a. The President.
b. The People.
c. The Federal Reserve System.
d. Congress.
e. The Comptroller.


Answer: c. The Federal Reserve System.

In his book Stossel writes about a business that gets in trouble for not having a cosmetology license in:

In his book Stossel writes about a business that gets in trouble for not having a cosmetology license in:

a. Utah.
b. Washington.
c. Mississippi.
d. Colorado.
e. Maine.


Answer: c. Mississippi.

In Stossel's example of public and private spaces, which park did Dan Biederman restore?

In Stossel's example of public and private spaces, which park did Dan Biederman restore?

a. Bryant Park.
b. Central Park.
c. Fenway Park.
d. Yosemite Park.
e. Redwood Park.


Answer: a. Bryant Park.

How does Stossel believe life can be made "fairer"?

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.
e. By keeping everything the same.


Answer: b. By letting individuals make decisions for themselves.

The demand curve is represented by:

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.


Answer: a. a downward sloping line.

Economics involves an understanding of:

Economics involves an understanding of:

a. Scarcity.
b. Choices.
c. Opportunity costs.
d. Rational self-interest.
e. All of the above.


Answer: e. All of the above.

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?

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.


Answer: a. The safe food and drug act.

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:

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.


Answer: a. law of demand.

According to Stossel, a free market depends on:

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.


Answer: a. property rights.

What is a macroeconomic problem?

What is a macroeconomic problem?

a. The full employment of resources.
b. Inflation.
c. Sustained economic growth.
d. Price stability.
e. Unlimited resources.


Answer: b. Inflation.

What is the main source of protection for consumers according to John Stossel?

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.


Answer: c. Reputation of brands and businesses.

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."

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


Answer: b. Frederic Bastiat

John Stossel believes that when there is a problem, the most efficient solution will be found by:

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.


Answer: d. individuals.

Which of the following will NOT cause a shift in the demand curve for houses?

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.


Answer: b. A change in wealth.

If a price floor is above market equilibrium it causes:

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.


Answer: a. a surplus.

According to Stossel, what would happen if the government did not build/maintain public parks?

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.


Answer: b. Private investors would build and maintain parks.

Stossel believes that OSHA regulation made no difference because:

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.


Answer: c. workplace deaths decreased nearly as fast without OSHA.

What does licensing create?

What does licensing create?

a. Better management.
b. More faithful employees.
c. Improved quality.
d. More competition.
e. Less competition.


Answer: e. Less competition.

Shiny new projects like stadiums do not:

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.


Answer: e. make wrong decisions.

Which of the following factors will NOT affect supply?

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.


Answer: b. A change in consumer tastes and preferences.

When Stossel was writing the book, what was Congress's approval rating?

When Stossel was writing the book, what was Congress's approval rating?

a. 3%
b. 12%
c. 27%
d. 55%
e. 92%


Answer: b. 12%