Untitled Flashcards Set

Who was this by? By which I mean that it is not consistent with those modern assumptions touching the nature of democratic government which we have just been discussing. It rejects the average man and the average training: it rejects the idea of constantly renewing the official personnel of the government from out of the general body of the people. It seeks to substitute for the person whom we call the man of the people, so far as possible, the men of the schools, the trained, instructed, fitted men: The men who will study their duties and master the principles of the business of their departments. The ordinary politician is right when he says that this is not democratic. It is not democratic in the sense in which we have taught our politicians wrongly to understand democracy. It is, nevertheless, eminently democratic, if we understand democracy as history has given it to us. It is democratic in this sense, that it draws all the governing material from the people, - from such part of the people as will fit themselves for the function. It thus plans to renew from generation to generation the Youth and the variety and the integrity of the administrative capacity employed in the public service. It avoids the narrowness of aristocracy, and the degeneracy of the monarchical polity, by selecting its instruments from the widest, richest, most perennial sources. It is but another process of representation."

  • Woodrow Wilson

In "Too Much of a Good Thing" Peter Orzag argues that due to polarization we need to

  • remove the ability of Congress to vote on certain issues

According to George Stigler, the decision process in politics is the same in the market. true or false.

  • false

According to Reason magazine, the laws and regulations Hawaii's governor Josh Green suspended to tackle the "housing crisis" were

  • a. passed by democratically elected legislature b. supported by environmental groups C. ALL OTHER ANSWERS d. opposed by developers

When the government spends more money than it receives in tax revenues, the government runs a. ___. Choose the best answer.

  • budget deficit

According to George Stigler, powerful corporations will campaign againts high levels of regulation. true or false

  • false

According to George Stigler " The state has one basic resource which in pure principle is not shared with even the mightiest of its citizens..." What resource is that the power to coerce which are items subject to tax - for example sales tax.

  • tax base

Identity which US. President said the following The makers of our federal Constitution followed the scheme as they found it expounded in Montesquieu, followed it. with genuine scientific enthusiasm. The admirable expositions of The Federalist read like thoughtful applications of Montesquieu[4) to the political needs and circumstances of America. They are full of the theory of checks and balances. The trouble with the theory is that government is not a machine, but a living thing. It falls, not under the theory of the universe, but under the theory of organic life. It is accountable to Darwin, not to Newton. It is modified by its environment, necessitated by its tasks, and shaped to its functions by the sheer pressure of life. No living thing can have its organs offset against each other as checks, and live.... Their cooperation is indispensable, their warfare fatal, There can be no successful government without leadership or without the intimate almost instinctive, coordination of the organs of life and action. This isnnot theory, but fact, and displays its force as fact, whatever theories may be thrown across its track, Living political constitutions must be Darwinian, in structure and in practice.

  • Woodrow Wilson

Taxes that take a higher percentage of income from low-income persons.

  • regression tax

The Texas legislature meets in regular session every year

  • False

Texas is a right to work state. true or false.

  • True

Adam smith's example of the pin factory is primarily an example of ___. Choose the best answer

  • The division of labor

Does any one person know all the processes which go into making a pencil? choose the best answer. true or false

False

Which of these is an example of creative dewtruction?

  • A. ALL OTHER ANSWERS b. uber replacing taxis c. cars replacing horse drawn carriage d. streaming services replacing video rental

____ is the process by which regulatory agencies may come to be dominated by the interests they regulate and not the public interest. Choose the best answer.

  • Regulatory capture

Monetarism is a school of economics most closely associated with...

  • Milton Friedmqn

The tendancy of any resource that is unowned, and hence nonexcludable, to be overused and undermaintained

  • Tragedy of the Commons

Price is the intersection of and . Choose the best answer.

  • Supply and demand

Milton Friedman argued that the major cause of the great depression in the 1930s was because

  • a contraction in the money supply by one third

_____ is the rate at which prices for goods and services increases over time. Choose the best answer.

  • inflation

Now, Jon is in Japan, trying to get a job as a full-time translator; he wants to translate English TV shows into Japanese and vice versa. He notices that the wage for translators is very low. Who is the “competition” that is pushing the wage down?

  • Other translators

Jon is on eBay, bidding for a first edition of the influential Frank Miller graphic novel Batman: The Dark Knight Returns. In this market, who is Jon competing with?

  • The other bidders

When the price is above the equilibrium price, greed (in other words, self-interest) tends to _________.

  • push the price down

If the price in a market is above the equilibrium price, this creates ___________.

  • a surplus

With these price controls on bread, would you expect bread quality to rise or fall?

  • Quality falls

If the government forced all bread manufacturers to sell their products at a “fair price” that was half the current, free-market price, what would happen to the quantity supplied of bread?

  • quantity supplied decreases.

If a government decides to make health insurance affordable by requiring all health insurance companies to cut their prices by 30%, what will probably happen to the number of people covered by health insurance?

  • Fewer people will be covered because health insurance companies will supply less.

If the government places a price ceiling of $2 on milk, how large with the shortage be?

  • 2100 gallons

Suppose that the quantity demanded and quantity supplied in the market for milk is as follows: What is the equilibrium price and quantity of milk?

  • price: $3; quantity: 3500

After this invention, will society’s scarce productive resources (machines, workers, retail space) flow toward the “new clothing” sector or away from it? (Note: You may think this theoretical question is fanciful but three-dimensional printers, which can create plastic or plaster prototypes of small items such as toys, cups, etc., have fallen dramatically in price. Every day, you’re getting just a bit closer to having your own personal Star Trek replicator.)

  • Resources will flow away from the new clothing sector.

What happens to the price of new, unrecycled clothing?

  • The price of new clothing decreases.

If you instead think of the “market for clothing” as the “market for clothing, whether it’s new or used,” does this shift the demand or supply of clothing, and in which direction?

  • The supply of clothing shifts right: a rise in supply.

Suppose a new invention comes along that makes it easier and much less expensive to recycle clothing: perhaps a new device about the size of a washing machine can bleach, re-weave, and re-dye cotton fabric to closely imitate any cotton item you see in a fashion magazine. Head into the laundry room, drop in a batch of old clothes, scan in a couple of pages from Vogue, and come back in an hour. If you think of the “market for clothing” as the “market for new clothing,” does this shift the demand or the supply of clothing, and in which direction?

  • The demand for clothing shifts left: a fall in demand.

If a nation’s government made it impossible for inefficient firms to fail by giving them loans, cash grants, and other bailouts to stay in business, is that nation likely to be poorer or richer as a result of this strategy? (Hint: Steven Davis and John Haltiwanger. 1999. “Gross Job Flows.” In Handbook of Labor Economics (Amsterdam: North–Holland) found than in the United States, 60% of the increase in U.S. manufacturing efficiency was caused by people moving from weak firms to strong firms.)

  • Poorer

Maxicon is opening a new coal-fired power plant, but the government wants to keep pollution down using tradable pollution permits. If a corrupt government just grants Maxicon all of the pollution permits in the entire nation (even though there are many energy companies), what do we predict will happen to pollution production?

  • The firms polluting will likely be those with the highest costs of reducing pollution.

A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real world, this government is quite certain that it can achieve the same price and quantity either way. It wants to choose the method that will pull in more government tax revenue. Which method is better from a revenue-raising perspective?

  • Revenues will be the same.

If the permits were not tradeable, how would this affect the efficiency of the program?

  • B & C

In theory, one reason why tradable pollution allowances are preferable to pollution regulation is because they:

  • Encourage lowest-cost pollution reduction.

In theory, one reason why tradable pollution allowances are preferable to pollution regulation is because they:

  • Decreases the cost of polluting

What happens to the number of tuna?

  • it decreases

Because of the rules humans have concerning tuna, what happens to the number of people harvesting tuna as a result of the price change?

  • it increases

What happens to the price of tuna as population and prosperity increase?

  • it increases

What happens to the number of chickens?

  • it increases

Because of the rules humans have concerning chickens, what happens to the number of people raising chickens as a result of the price change?

  • It increases

In this video, we learn that chickens and the “chicken of the sea” (tuna) are fundamentally different in terms of population though they are both food. As population and prosperity has increased, the demand for chicken has increased. What happens to the price of chickens as a result?

  • It increases

The nation of Alphaville has been hunting their deer population to extinction. The government decrees strict limits on the number of hunters, and on the number of rounds of ammunition that each hunter can take into the hunt. How do you think hunters will respond?

  • Increase the quality of their weapons

At some restaurants and grocery stores, you can buy bison burgers made from farm-raised bison. Is this good news or bad news if we want more bison around?

  • Good news

Which of the following statements are true? *

  • A. AS THE TECHNOLOGY OF HOME MOVIE ENTERTAINMENT HAS CHANGED FROM TAPES AND DISCS TO DIGITAL FILES, HOME VIEWING OF MOVIES HAS CHANGED FROM RIVAL TO NONRIVAL. b. Assuming the law is obeyed, as the technology of home movie entertainment has changed from tapes and discs to digital files, home viewing of movies has changed from excludable to nonexcludable. c. A and B d. None of the above

Suppose someone illegally downloaded a movie instead of purchasing it. Also suppose that person placed a low value on the movie (they valued it less than the price required to purchase it legally). Does the movie company lose any revenue as a result of the theft? Why or why not?

  • No

Suppose someone illegally downloaded a movie instead of purchasing it. Also suppose that person placed a high value on the movie (they valued it more than the price required to purchase it legally). Does the movie company lose any revenue as a result of the theft?

  • Yes

Suppose someone stole a DVD from a retail outlet. Regardless of how that person values the DVD, does the movie company lose any revenue as a result of the theft?

  • Yes

Some media companies (especially in music and movie industries) run ads claiming that downloading or copying media is the same thing as stealing a CD or DVD from a store. Let’s see if this is the case. Is a DVD a rival good?

  • Yes

True or false: a public good is defined as one produced by the public sector.

  • False

In Japan, Dave, a tourist from the United States, enjoys the public parks.

  • Free rider

In the United States, Sara pays taxes to fund children’s immunizations. She lives out in the forest, has no family, and rarely sees other people.

  • Forced rider

Monica pays her local property taxes and state incomes taxes. Police patrol her neighborhood regularly.

  • Paying taxes for public goods

Which of the following are free riders, which are forced riders, and which are just people paying for public goods? - In Britain, Alistair pays a tax to support the British Broadcasting Company. He doesn’t own a radio or TV.

  • Forced rider

The idea of calculus

  • Nonrival, non-excludable

Yosemite National Park

  • Nonrival, excludable

Farm-raised salmon

  • Rival, excludable

Cable television

  • Nonrival, excludable

The Chinese Language is

  • Nonrival, non-excludable

For each of the following items, decide first if the good is rival or nonrival and then whether it is excludable or non-excludable. Apples *

  • Rival, excludable

If the world collectively decided to tax the population to invest in asteroid defense, who would be the free riders?

  • Future generations

We learned that asteroid defense is a public good. Which of the following group(s) of people, if any, would potentially value investment in asteroid defense more than the rest of humankind?

  • Young people

Which of the following might have a free rider problem?

  • A large fireworks display

What is the logic behind free riding?

  • a. My decision to buy or not buy doesn’t affect whether I receive the service b. It’s better to get something for free than have to pay for it c. Receiving the service is solely based on the decisions of others d. ALL OF THE ABOVE

If the price of cars falls, are carmakers likely to make ___________.

  • fewer cars

Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied?

  • it will decrease

When will people search harder for substitutes for oil?

  • when the price of oil is high

When the price of a good increases the quantity demanded _____.

  • decreases

You try a new dinner recipe, and it goes horribly wrong. You have 4 dinner portions of a meal you value at negative $5.00 each (the food is that bad!). You spent $20 on ingredients. How many portions of the meal should you eat in the next few days?

  • Zero portions

Suppose that coffee costs $3.00 per cup. If the marginal benefit of your next cup of coffee is $2.50, should you buy a cup of coffee?

  • No

Suppose that you are looking to buy a home. Which of the following choices is the best example of a MARGINAL decision?

  • Increasing your budget by $10,000

You purchased non-refundable plane tickets to travel to Tampa this weekend for $200. Your friend just called and won 2 free concert tickets for this weekend to see your favorite artist and wants to know if you will join them. What is the minimum amount you can value the concert to cancel your travel plans to Tampa?

  • $201

Which of the following best describes the trade-offs involved in increasing animal welfare requirements for egg-laying chickens?

  • Increasing animal welfare requirements will increase the cost of eggs

Which of the following most accurately identifies the opportunity cost of a cafe manager considering opening a new cafe location?

  • The value of the next best alternative to their time and money spent on the new location

Which of the following is true about opportunity costs?

  • An individual’s opportunity cost increases when the next best alternative becomes more valuable.

Economics is the study of ____________.

  • Choices under scarcity

Which of the following is most likely to incentivize better driving?

  • Lowering insurance rates for drivers with strong records of safe driving.

Which of the following is NOT an example of incentives at work?

  • After an increase in shoplifting, a store installs hidden cameras.

Incentives always involve ____________

  • Rewards and/or penalties