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. For Adam Smith, the idea of a person from Honduras leaving their homeland to find work in Texas 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. 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; Hong Kong 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 Hong Kong d. Government regulation over all business activities, including prices, wages and product offerings is essential to promote economic freedom; Denmark 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 Ronald Reagan 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 Hong Kong. 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. Denmark ranks 8th in economic freedom. Zimbabwe ranks 174th. France ranks 64th. Why? 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. 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. 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 U.S. economic history is a useful guide? a. Centrally-planned production by the U.S. government to ensure quality. b. The contributions of multitudinous strangers, all contributing their tiny amounts of knowledge without the prompting of masterminds. 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 led to profit rather than selfless acts of love and kindness. e. B and D only. On October 14, 2020 Supreme Court nominee (now Justice) Amy Coney Barrett did not say whether Medicare was Unconstitutional. Who would say it is Unconstitutional and what would they cite to defend this view? Who would argue that central planning is more beneficial in providing health care than the lessons you learned from "I, Pencil"? a. James Madison; Article One, Section Eight, Clause One; Karl Marx b. Alexander Hamilton; Article One, Section Eight, Clause One; Adam Smith c. Alexander Hamilton; The Fifth Amendment: Leonard Read d. David Crockett and James Madison; The Sixteenth Amendment; Frederic Bastiat Suppose to fight income inequality a new wealth tax is imposed on billionaires. Based on what we learned from Democrat John F. Kennedy: a. The wealth tax will lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences. b. The wealth tax will lead to no change in revenue over time but less income inequality stemming from a fairer tax code. c. The wealth tax will reduce the problem of scarcity for all working poor people. d. The wealth tax is an economically inferior solution to reducing income inequality. In fact, lower taxes on income and profit earned by billionaires tends to help the poor more. e. B and D only. Take a moment to log on to https://www.freedominthe50states.org/ In which state would you tend to see regulatory policies that Frederic Bastiat 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 Studies show that there is a ______________ relationship between the number of fathers who are living in the same home as their children and the crime rate. This suggests that the application of Alexander Hamilton's views on welfare programs that pay only single mothers any benefits can lead to __________ crime over time. a. Negative; less b. Positive; more c. Convex; no change in d. Negative; more e. Concave; no change in The existence of public-school districts creates _______ competition in education and promotes _____ income inequality. Bastiat called public education an act of _________. a. Less; less; plunder b. More; more; benevolence c. Less; more; plunder d. More; no change in; rational law-making e. None of the above. What is the proven relationship between federal spending on public education and education quality in the U.S.? In the video, "Stupid in America" in what nation did you see competition improving education quality? How did this nation achieve this result? a. Positive; Norway; through greater education funding b. Negative; The United States; by providing free pre-K education c. Zero; Belgium; by allowing parents to select the school of their choice d. Convex; Finland; by requiring that all teachers be certified to teach e. Concave; South Korea; by providing greater union protections for teachers What is the relationship between the unionization of public-school teachers and educational quality? By the way, in Bill Clinton's second term he proved that the relationship between capital gains tax rates and capital gains tax revenue is: a. Positive; Zero b. Negative; Convex c. Zero; Concave d. Convex; Positive e. Concave; Negative What is the relationship between teacher qualifications and educational quality, as observed in Finland and South Korea? What is the relationship between government regulations and economic freedom? In what state (see the link in question #20) would you expect to see the greatest competition in K-12 education? a. Positive; Negative; Nebraska b. Negative; positive; Florida c. Zero; concave; Michigan d. Convex; Zero; Louisiana e. Positive; convex; Delaware