1. When it comes to the issue of scarcity, President Biden must understand that: a. There will always be an imbalance between the level of justice carried out in our country and the level of justice people want to see carried out. b. International trade agreements that lead to greater reciprocity will create jobs in areas where a comparative advantage is enjoyed and job losses where a country is inefficient in producing a particular product. c. There is a limit to how many lives can be saved from any Covid-19 vaccine and there is a limit to how much taxpayers can have taken from them to provide Medicare for senior citizens who are recovering from this virus. d. Our society will never be fully satisfied with how much money is allocated to help struggling college students whether funding is increased or decreased. e. All the above. 2. In which of the following scenarios does the concept of opportunity cost appear? a. The city of Minneapolis, Minnesota reduces police funding to shift the money towards peace and justice educational programs. b. A student in this class opts to drop the class today rather than spend 12 hours frantically searching for answers in their book. c. A resident of Texas decides to move to a state better prepared for ice storms. d. A business owner decides to employ more technology rather than pay workers a mandated $15 per hour minimum wage. e. All the above reflect the concept of weighing out the value of second-best choices. 3. Recently, investors caused the price of GameStop stock to increase dramatically. Under what conditions would it have been an irrational decision to invest in GameStop? a. If, at the time it was made, the perceived direct and opportunity cost of this decision was less than the perceived benefits. b. If there was no opportunity cost of such a decision and therefore nothing to lose. c. If the perceived benefits associated with this investment was lower than the direct and opportunity cost of investing in GameStop. d. If the benefits - measured by the odds of making profit - turned out to equal the direct cost of losing the entire investment. e. B and D only 4. One of the economic barriers to fighting climate change is the fact that: a. Human beings are self-interested and tend to pay more attention to what they pay for gas, electricity, and other energy-using devices than to the climate. b. Human beings are rational and tend to prefer lower energy costs to policies that may, or may not, lead to a cooler climate. c. Normative analysis tends to lead to laws and regulations that often make people even poorer than they would be if laws were based on cost-benefit analysis. d. Scarcity means that no matter what we do to fight climate change there will always be pollution from our economic activities. e. All the above. 5. Which of the following are economic facts? a. President Biden's recent decision to leave in place tariffs on European wine will not lead to greater efficiency in U.S. wine-making regions. b. Human beings are inherently irrational because they usually do not consider the opportunity cost of their decisions. c. No one individual knows how to make a smartphone, thus spontaneous order and self-interested strangers can be trusted to provide us with this product. d. The law of unintended consequences would suggest that eminent domain laws always lead to greater economic efficiency. e. A and C only 6. Congresswoman Alexandria Ocasio-Cortez has sponsored legislation that calls for a 100% drop in CO2 emissions by 2030. Adam Smith would: a. Agree with her plan, arguing that self-interested businesses and consumers should not be left alone to deal with climate change. b. Agree with her, arguing along the same lines as Alexander Hamilton, that government needs to interfere to reduce CO2 emissions further. c. Argue that central-planning - the opposite of what we learned in "I, Pencil" would work more efficiently than allowing businesses to continue to pollute. d. Argue that profit-seeking businesses and self-interested consumers can be trusted to reduce CO2 emissions. e. None of the above. 7. The United States has a tremendous comparative advantage over France in the production of medical equipment. This means that if the U.S. and the France want to promote efficient economic policies to help with the current pandemic: a. The French government should impose tariffs on medical equipment coming from the United States to protect jobs in this sector of its economy. b. The United States should use infant-industry tariffs to keep its advantage in this field or fight dumping by French companies. c. France and the U.S should seek reciprocal trade agreements in this area. d. France should attempt to become more self-reliant in the production of medical equipment regardless of the opportunity cost of doing so. e. C and D only 8. Based on what we know about the economic impact of tariffs and quotas, which of the following is a historically flawed reason for a government to have restrictive trade policies? a. When concern over human rights and the environment are used to increase tariffs. b. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. c. When the value of the dollar fluctuates compared to foreign currency. d. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. e. All the above. 9. The passage of NAFTA in 1994 led to a(n) _______in exports between the U.S., Canada and Mexico. As a result, total job creation in each nation _______and wages for American factory workers __________. This is one reason why economists ________President Biden's recent executive order requiring government agencies to "Buy American." a. Decrease; decreased; decreased; supported b. Increase; increase; decreased; have not supported c. Decrease; no change in; decreased; supported d. Increase; increased; increased; have not supported 10. The post-World War II period represented the __________ era in U.S. tariff policy. This led to___________. 1930 was the year __________. a. Revenue; job creation and a healthier economy; NAFTA was passed. b. Restriction; the Great Depression; The Smoot-Hawley bill passed. c. Reciprocity; global economic growth; Congress reduced trade with other nations. d. Restriction; a more efficient approach to trade policy; the revenue era began. e. B and D only