Questions from General Economics

Q: 1. The primary motivation for the purchase of any insurance lies

1. The primary motivation for the purchase of any insurance lies in the fact that most people are a) risk lovers. b) risk averse. c) risk neutral. d) risk tolerant.

Q: In 2014, unless a state was willing to forgo all federal

In 2014, unless a state was willing to forgo all federal money for Medicaid, a member of a family earning less than 133 percent of the poverty line is a) ineligible for any health care assistance. b)...

Q: The prescription drug industry is characterized by products that have a

The prescription drug industry is characterized by products that have a) low fixed costs and low marginal costs. b) low fixed costs and high marginal costs. c) high fixed costs and low marginal cos...

Q: For a market economy to function, economists insist that government must

For a market economy to function, economists insist that government must protect a) private property. b) rights to free speech. c) freedom of assembly. d) free access to health care.

Q: If judges had to be trained as economists before taking their position

If judges had to be trained as economists before taking their position, they might use ____ analysis when deciding on the right sentence. a) marginal b) punitive c) religious d) average

Q: When firms add workers and get more efficient, they are benefiting

When firms add workers and get more efficient, they are benefiting from a) the division of labor. b) diminishing returns. c) the law of large numbers. d) diminishing marginal utility.

Q: In measuring gross domestic product, goods produced by foreign firms in

In measuring gross domestic product, goods produced by foreign firms in the United States are a) counted, and so are goods produced by American firms in foreign countries. b) counted, but goods prod...

Q: Per capita real economic growth during the pre–Revolutionary War era

Per capita real economic growth during the pre–Revolutionary War era was a) negative. b) zero. c) 1 percent. d) 2 percent.

Q: America’s most significant trading partner is a) Saudi Arabia.

America’s most significant trading partner is a) Saudi Arabia. b) Canada. c) China. d) Japan.

Q: If anti-scalping laws are perfectly enforced, it will result

If anti-scalping laws are perfectly enforced, it will result in a) deadweight loss. b) a significant increase in consumer surplus. c) a significant increase in producer surplus. d) a significant l...