42. In Mark Skousen’s article, “What is Economics, Anyway?,” he bemoans the apparent fact that the modern definition of economics is incomplete. What does he say is missing? A. relationship between means and endsB. the concept of scarcityC. the process of transformation of resourcesD. allocation toward competing ends 43. The broken window fallacy a. explains why inflation is so high.b. is a justification for the government to print more money.c. is illustrated when a government program is justified not on its merits but on thenumber of jobs it will create.d. has nothing to do with public policy. 44. Capitalism was originally a smear used by which socialist founder? A. Adam SmithB. Jean-Jacques RousseauC. Vladimir LeninD. Karl MarxE. Paul Krugman 45. How does subjective value make “gains from trade” possible? 46. Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of Hiroshima killing tens of thousands of Japanese and devastating the infrastructure. AKeynesian at that time might conclude that there is a silver lining in the destruction, as economic prosperity will result. Evaluate the logic of this claim in a few sentences. 47. We discussed two definitions of inflation. What are they? What is the difference and why is it important? 48. Most introductory economics textbooks have a section on “market failure.” It is here that students learn that markets may fail to achieve their potential – leaving people worse off than they theoretically could be. The existent of market failure is often taken as an excuse forgovernment intervention to do whatever markets fail to do. In just a couple of sentences, explain why economists (and others, particularly politicians) must accept the possibility of “government failure” as well? That is, tell me why government solutions to perceived market “failures” maythemselves fail to achieve their own stated goals? The U.S. Drug war is an apt example of a discrepancy between a stated political policy goal and the actual attainment of that goal. 49. How might price controls on gasoline lead to human fatalities in an area where there is an oncoming hurricane? 50. Is the following claim logical? Explain your answer.Actor Matt Damon will be more likely to buy a court-side Boston Celtics basketball seat because they are more expensive.
42. In Mark Skousen’s article, “What is Economics, Anyway?,” he bemoans the apparent fact that the modern definition of economics is incomplete. What does he say is missing?
A. relationship between means and ends
B. the concept of scarcity
C. the process of transformation of resources
D. allocation toward competing ends
43. The broken window fallacy
a. explains why inflation is so high.
b. is a justification for the government to print more money.
c. is illustrated when a government program is justified not on its merits but on the
number of jobs it will create.
d. has nothing to do with public policy.
44. Capitalism was originally a smear used by which socialist founder?
A. Adam Smith
B. Jean-Jacques Rousseau
C. Vladimir Lenin
D. Karl Marx
E. Paul Krugman
45. How does subjective value make “
46. Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of Hiroshima killing tens of thousands of Japanese and devastating the infrastructure. A
Keynesian at that time might conclude that there is a silver lining in the destruction, as economic prosperity will result. Evaluate the logic of this claim in a few sentences.
47. We discussed two definitions of inflation. What are they? What is the difference and why is it important?
48. Most introductory economics textbooks have a section on “market failure.” It is here that students learn that markets may fail to achieve their potential – leaving people worse off than they theoretically could be. The existent of market failure is often taken as an excuse for
government intervention to do whatever markets fail to do. In just a couple of sentences, explain why economists (and others, particularly politicians) must accept the possibility of “government failure” as well? That is, tell me why government solutions to perceived market “failures” may
themselves fail to achieve their own stated goals? The U.S. Drug war is an apt example of a discrepancy between a stated political policy goal and the actual attainment of that goal.
49. How might price controls on gasoline lead to human fatalities in an area where there is an oncoming hurricane?
50. Is the following claim logical? Explain your answer.
Actor Matt Damon will be more likely to buy a court-side Boston Celtics basketball seat because they are more expensive.
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