In the Wealth of Nations, Adam Smith worried that producers

Would often work together to raise prices

In a perfectly competitive world, a firm that has advantage over others

Will see that advantage disappear because of competition

How might money influence the rules of the economy?

Contributions allow voices of those contributing to be heard

John Stuart Mill criticized the idea of communism because he argued

People would constantly try to avoid their share of work

The historical use of terms like "Negro" and "colored" demonstrates

Power of language in shaping perception/economic opportunity

Most ECON's believe that the government should act as a

Referee to ensure competition is fair and people don't cheat

Sometimes there are naturally occurring examples of market power. Which is the best ex of this?

A supermodel w/ a unique genetic gift of exceptional beauty

Mill said that the biggest problem with free markets and private property during his time was

Laws that existed gave huge advantages in race for wealth

Why does a champion football player make so much more money that a champion horseshoe thrower?

Football player's gifts more valued than horseshoe players.

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Econ Chapter 5 (New)

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Review of chpt 5 concepts

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Questions 10

Answers

1
In the Wealth of Nations, Adam Smith worried that producers
Would often work together to raise prices
Would overthrow the king
Would only care about themselves
Would work themselves to death
2
In a perfectly competitive world, a firm that has advantage over others
Will be sued
Will see that advantage disappear because of competition
Will allow you to charge higher prices
Will last forever
3
How might money influence the rules of the economy?
Contributions allow voices of those contributing to be heard
It won't, because political contributions have been limited
Rules will be made without any input from political donors
Court will overrule any rules that interfere w/ the economy
4
John Stuart Mill criticized the idea of communism because he argued
It couldn't work
The population wouldn't grow fast enough
People would constantly try to avoid their share of work
People would be treated unequally
5
In a perfectly competitive market, what sets the price?
Supply and demand
The customers
The government
The sellers
6
The historical use of terms like "Negro" and "colored" demonstrates
Power of language in shaping perception/economic opportunity
That discrimination no longer occurs today
How terminology changes over time
That language has little consequence
7
Most ECON's believe that the government should act as a
Controlling force in all aspects of our economy
Servant of those who make the largest political donations
Referee to ensure competition is fair and people don't cheat
Completely disinterested party when it comes to the economy
8
Sometimes there are naturally occurring examples of market power. Which is the best ex of this?
A king who orders his subjects to do whatever he pleases
A city w/ strict zoning laws that stop new business from entering
A business that bribes Congress to prevent any competition
A supermodel w/ a unique genetic gift of exceptional beauty
9
Mill said that the biggest problem with free markets and private property during his time was
Laws that existed gave huge advantages in race for wealth
People didn't know enough about how great they were
Technology wasn't developed enough to make them work well
Resources were too scarce to make then work well
10
Why does a champion football player make so much more money that a champion horseshoe thrower?
The football player risks more than the horseshoe thrower
Football player's gifts more valued than horseshoe players.
The horseshoe thrower is less gifted
The football player has a shorter time to make money

Econ Chapter 5 (New) Flashcards | StudBud