11. Which of the following political reasons for tariffs and quotas typically receives some conditional support from economists? a. To combat the dumping of products at artificially low prices by rival nations. b. To promote domestic job creation and protect the environment. c. To protect the automobile industry - and even more so to protect the steel workers. d. To earn tax revenue that prevents direct (income) taxes from being even higher. e. To achieve the efficient results of the Smoot-Hawley Act. 12. For Adam Smith, the idea of a person from Haiti leaving their homeland to find work in Florida is ______________ the principles of __________. After all, that person is assumed to be ____________ and _______________. a. Inconsistent with; capitalism; irrational; incapable of knowing the full cost of moving. b. Consistent with; socialism; rational; self-interested. c. Consistent with; capitalism; rational; motivated by a desire to have more money, freedom, or other beneficial things. d. A violation of; capitalism; self-interested; therefore, harmful to others. e. None of the above. 13. The foundation of capitalism rests on the principle that_________. This perspective is followed in which nation? a. Human beings are capable of voluntary cooperation, but greed keeps people from being able to serve one another without violating human rights; Germany b. Human beings are not experts in everything, therefore self-interested, but peaceful, activities can raise living standards; Australia and Estonia, to a great extent. c. Enlightened self-interest is a way to promote cooperation, trade and prosperity - but only for people who are born privileged; Denmark and Singapore d. Government regulation over all business activities, including prices, wages and product offerings is essential to promote economic freedom; Denmark 14. In what category would Adam Smith and the author of "I, Pencil" be pleased with the economic system found in Denmark? In what category would Denmark displease David Crockett and Frederic Bastiat? a. Private property rights tend to be very secure in Denmark; Denmark engages in large-scale plunder of taxpayers to support social welfare programs. b. It is relatively easy to start a new business in Denmark; Denmark has very high income tax rates compared to places like Ireland. c. The level of corruption tends to be lower in Denmark; Denmark tends to follow Alexander Hamilton's perspective on government spending. d. Denmark tends to support open markets and low tariffs; Denmark tends to lean towards Franklin D. Roosevelt's views on marginal income tax rates. e. All of the above. 15. Denmark ranks 10th in economic freedom. Zimbabwe ranks 174th. France ranks 64th. See https://www.heritage.org/index/ranking Why the divergent rankings? a. Because Zimbabwe has greater levels of corruption and less protection of private property rights than both Denmark and France. b. Because Zimbabwe has followed the teachings of people like Karl Marx, while Denmark tends to pursue more business-friendly regulations. France, on the other hand, has greater protection of property rights than Zimbabwe but much higher taxes than Denmark. c. Because Zimbabwe promotes Adam Smith's principles to the ideas of self-interest while Denmark tends embrace the use of "master minds". Meanwhile, France has greater corruption than either Denmark or Zimbabwe. d. Because Denmark has high tariffs while Zimbabwe tends to embrace business freedom and limited government intervention in markets. In contrast, France is much more like Hong Kong when it comes to tariffs, taxes, and welfare spending. e. None of the above. f. A and B only. 16. Which of the following would be allowed in a purely capitalistic nation? In the lecture that compared Denmark to the United States, where did you see examples that go against the principles of capitalism in the U.S.? a. Free trade and no forced closures of businesses during a pandemic; Donald Trump's reduction in corporate and personal income tax rates. b. Income taxes, eminent domain takings and barber shop licenses; the creation of the Trans-Pacific Partnership. c. School choice, income inequality and profiting from selling medical masks; the Kelo v. New London, CT Supreme Court case. d. Corporate welfare and government surveillance of everyone's email and mail; the growth of income inequality. e. A and C only. 17. At some point in the future there will probably be only electric or alternative energy-powered cars on the road. Where will it come from if world economic history is a useful guide? a. Centrally-planned production by the U.S. government to ensure quality and reliability. b. The contributions of multitudinous strangers, all contributing their tiny amounts of knowledge without the prompting of masterminds or central planning by legislators. c. The Department of Energy - if the Biden Administration will simply trust scientists to do their research. d. The self-interested activities of people with unique comparative advantages that leads to profit rather than selfless acts of love and kindness. e. B and D only. 18. President Biden wants to increase the estate tax (the tax on wealth when a person dies) from 23.8% to 43.4%. Based on what we learned from fellow Democrat John F. Kennedy: a. The increase would lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences. b. The increase would lead to no change in revenue over time but less income inequality stemming from a fairer tax code. c. The higher tax would reduce the problem of scarcity for all working poor people. d. The increase would be an economically inferior solution to reducing income inequality. In fact, lower taxes - even on the rich - tends to help the poor more. e. B and D only. 19. Take a moment to log on to https://www.freedominthe50states.org/ In which state would you tend to see regulatory policies that Adam Smith would most approve of? Where would you see occupational licensing that would please Karl Marx? a. Idaho; Illinois b. New York; Wyoming c. Washington; Oregon d. Vermont; Colorado e. Hawaii; Rhode Island 20. In which state would you see income tax policies that are similar to the time when Franklin D. Roosevelt was president? Which state has educational freedom that is like Belgium? a. California; Florida b. Texas; Michigan c. Tennessee; Maryland d. New York; North Dakota e. Florida; Arizona