Untitleddocument 1 /4 100% + E] 0:) A part of economic theory that studies "how things should be" and is based on various philosophical ideas is called... A. POSITIVE ECONOMICS B. APPLIED ECONOMICS C. PHILOSOPHICAL ECONOMICS D. NORMATIVE ECONOMICS E. ECONOMICS OF JUSTICE A eld of economics that is based on analyzing data with the goal of explaining or forecasting economic indicators is called... A. POSITIVE ECONOMICS B. APPLIED ECONOMICS C. PHILOSOPHICAL ECONOMICS D. NORMATIVE ECONOMICS E. ECONOMICS OF JUSTICE A famous economist who was arguing for free markets in the times when the government had almost total control over the economy was: A. POSITIVE ECONOMICS B. APPLIED ECONOMICS C. PHILOSOPHICAL ECONOMICS D. NORMATIVE ECONOMICS E. ECONOMICS OF JUSTICE A famous economist who argued that the government should have the leading role in taking the economy out of an economic crisis was,,. RONALD REGAN ABRAHAM MASLOW JOSEPH SCHUMPETER JOHN M KEYS . ADAM SMITH The main reason for the Great Depression in 1929-1936 from the position of "economic power" mpow balance was that too much economic power was concentrated in the hands of... SMALL BUSINESS LARGE BUSINESS CONSUMERS LABOR UNIONS GOVERNMENT mpom> E Untitled document 2/4 100% The main reason for the Great Inflation and Stagflation in 1973-1975 from the position of 'economic power" balance was that too much economic power was concentrated in the hands of... A. SMALL BUSINESS B. LARGE BUSINESS C. CONSUM D. LABOR UNIONS 2 E. GOVERNMENT The main reason for the Great Recession in 2008-2009 from the position of "economic power" balance was that too much economic power was concentrated in the hands of... A. SMALL BUSINESS E BUSINESS C. CONSUMERS D. LABOR UNIONS E. GOVERNMENT What economic school believes that competition is natural for markets and is it true? 3 A. NEW ECONOMIC THINKING / KEYNESIAN, TRUE B. NEOCLASSICAL, TRUE C. NEOCLASSICAL FALSE D. NEW ECONOMIC THINKING KEYNESIAN, FALSE What economic school believes that the government always acts in the interest of and is it true? E. NEW ECONOMIC THINKING / KEYNESIAN, TRUE F. NEOCLASSICAL, TRUE G. NEOCLASSICAL FALSE H. NEW ECONOMIC THINKING KEYNESIAN, FALSE What are the two main problems with the government system of goods allocation (assuming the government does want to allocate the goods in the best possible way for its citizens)?E Untitled document 2 / 4 100% + What are the two main problems with the government system of goods allocation (assuming the government does want to allocate the goods in the best possible way for its citizens)? O THE SYSTEM DOES NOT ACCOUNT FOR PEOPLE'S NEEDS THE SYSTEM DOES NOT ACCOUNT FOR PEOPLE'S PREFERENCES THE INCENTIVE CORRUPTION O PRICES ARE TOO HIGH O MARKET FAILURE What is the main problem with the market system of goods allocation? A. DOES NOT ACCOUNT FOR PEOPLE'S NEEDS B. DOES NOT ACCOUNT FOR PEOPLE'S PREFERENCES C. INCENTIVES CORRUPTION D. HIGH PRICES E. MARKET FAILURE When the price for a normal good goes up... A. DEMAND GOES UP, SUPPLY GOES DOWN B. DEMAND GOES DOWN, SUPPLY GOES UP 2 C. DEMAND GOES DOWN, SUPPLY GOES EITHER WAY D. DEMAND GOES EITHER WAY, SUPPLY GOES UP E. DEMAND GOES UP, SUPPLY GOES EITHER WAY 3 F. DEMAND GOES EITHER WAY SUPPLY GOES DOWN Which market system is defined by all market power belonging to the consumers? A. MONOPOLY B. PERFECT COMPETITION C. MONOPOLISTIC COMPETITION D. OLIGOPOLY Which market system is defined by all market power belonging to the producers? A. MONOPOLY B. PERFECT COMPETITION C. MONOPOLISTIC COMPETITIONE Untitled document 3 / 4 100% + Which market structure is considered to have the best balance of power between consumers and producers and thus generates the best outcome for the economy? A. MONOPOLY B. PERFECT COMPETITION C. MONOPOLISTIC COMPETITION D. OLIGOPOLY Select all market failures from the list (choose all that apply): O PUBLIC TRANSPORTATION (ASSUMING THE SOCIETY BELIEVES THAT EVERYONE SHOULD HAVE ACCESS TO THEM) PEOPLE SPENDING TOO MUCH MONEY ON BRANDED CLOTHES TRYING TO IMPRESS OTHERS HIGH SCHOOL EDUCATION (ASSUMING THE SOCIETY BELIEVES THAT EVERYONE SHOULD HAVE ONE) O AN ELECTRIC CAR HAVING A HIGHER PRICE BUT LOWER MAINTENANCE COST COMPARED TO A CONVENTIONAL CAR FAST FASHION O AIR POLLUTION 2 A negative market externality is... (choose all that apply) O AIR POLLUTION FROM CARS AND OTHER EMISSIONS O PEOPLE BUYING ENVIRONMENTALLY FRIENDLY VEHICLES BECAUSE THE PRICE OF GAS HAS WENT UP O PRICES FOR NEW CARS WENT UP BECAUSE THE DEMAND INCREASE O US DOLLAR HAS WEAKENED BECAUSE OF COVID RELIEF PACKAGES O THE AMERICAN APPEAL INDUSTRY HAS SHUT DOWN TO ITS LOCAL MANUFACTURING BECAUSE THE PRODUCTION WAS TRANSFERRED OVERSEAS 3 O APPAREL BECAME CHEAPER BECAUSE THE PRODUCTION WAS TRANSFERRED OVERSEAS What are the two popular ways to solve market failures? O IGNORE THEME Untitled document 3 / 4 100% + AN ELECTRIC CAR HAVING A HIGHER PRICE BUT LOWER MAINTENANCE COST COMPARED TO A CONVENTIONAL CAR O FAST FASHION O AIR POLLUTION A negative market externality is... (choose all that apply) O AIR POLLUTION FROM CARS AND OTHER EMISSIONS O PEOPLE BUYING ENVIRONMENTALLY FRIENDLY VEHICLES BECAUSE THE PRICE OF GAS HAS WENT UP PRICES FOR NEW CARS WENT UP BECAUSE THE DEMAND INCREASE O US DOLLAR HAS WEAKENED BECAUSE OF COVID RELIEF PACKAGES THE AMERICAN APPEAL INDUSTRY HAS SHUT DOWN TO ITS LOCAL MANUFACTURING BECAUSE THE PRODUCTION WAS TRANSFERRED OVERSEAS APPAREL BECAME CHEAPER BECAUSE THE PRODUCTION WAS TRANSFERRED OVERSEAS What are the two popular ways to solve market failures? O IGNORE THEM 2 3 O EDUCATE PEOPLE ABOUT THE PROBLEM AND TRY TO CHANGE THEIR CONSUMER PREFERENCES IMPOSE TARIFFS O REDUCE TAXES O MOVE TO EUROPE O GOVERNMENT REGULATION