Chapter 3 Questions Economics
Chapter 3 Multiple Choice
1. What is externality
a. Looking at a problem from an external view
b. A private behavior that has broader social consequences* pg 56
c. Weighing the costs and the benefits of a decision
d. F
2. Who deals with externalities in a market economy
a. The government* pg 56
b. Local businesses
c. Volunteers
d. Individuals
3. Which one of these can you have property rights on
a. House
b. Car
c. Inventions
d. All of the above* pg 66
4. What is the average cost of bringing a new drug to market
a. $600 million* pg 68
b. $1 million
c. $50 million
d. $350 million
5. Which country has the highest rate of organ donations
a. United States
b. France
c. Germany
d. Spain* pg 79
6. In what year did Abdul Waheed’s case come to trial against his neighbor
a. 2007
b. 2000* pg 71
c. 2001
d. 2003
7. Which of the following is not an example of a negative externality
a. Buying a SUV
b. Not picking up your dog’s poop
c. The authors neighbor playing the bongos
d. A business investing in a downtrodden neighborhood* pg 58
8. What is the benefit that smokers provide to society
a. They pay high taxes
b. Second hand smoke
c. They die young* pg 59
d. Put more money into the economy
9. What reason does the author say is responsible for billions of people living in poverty
a. Bad government* pg 65
b. Externality
c. Hunger
d. Drought
10. In 1999 what did Angola’s rulers spend $900 million dollars on
a. Weapons* pg 66
b. Food
c. Cars
d. Space program
11. What was Napster sued for
a. Copyright infringement
b. Facilitating piracy* pg 66
c. Selling credit card information
d. Tax evasion
12. Jerry Jordan was the former president of what
a. The United States
b. Microsoft
c. Federal Reserve Bank of Cleveland* pg 70
d. The senate
13.
Short Answer
1. Create an example of an externality?
2. What are the rules for a functional market economy?
3. Name three ways the government lowers the cost of doing business in the private sector and explain how.
4. Why would the Czech Republic
1. What is externality
a. Looking at a problem from an external view
b. A private behavior that has broader social consequences* pg 56
c. Weighing the costs and the benefits of a decision
d. F
2. Who deals with externalities in a market economy
a. The government* pg 56
b. Local businesses
c. Volunteers
d. Individuals
3. Which one of these can you have property rights on
a. House
b. Car
c. Inventions
d. All of the above* pg 66
4. What is the average cost of bringing a new drug to market
a. $600 million* pg 68
b. $1 million
c. $50 million
d. $350 million
5. Which country has the highest rate of organ donations
a. United States
b. France
c. Germany
d. Spain* pg 79
6. In what year did Abdul Waheed’s case come to trial against his neighbor
a. 2007
b. 2000* pg 71
c. 2001
d. 2003
7. Which of the following is not an example of a negative externality
a. Buying a SUV
b. Not picking up your dog’s poop
c. The authors neighbor playing the bongos
d. A business investing in a downtrodden neighborhood* pg 58
8. What is the benefit that smokers provide to society
a. They pay high taxes
b. Second hand smoke
c. They die young* pg 59
d. Put more money into the economy
9. What reason does the author say is responsible for billions of people living in poverty
a. Bad government* pg 65
b. Externality
c. Hunger
d. Drought
10. In 1999 what did Angola’s rulers spend $900 million dollars on
a. Weapons* pg 66
b. Food
c. Cars
d. Space program
11. What was Napster sued for
a. Copyright infringement
b. Facilitating piracy* pg 66
c. Selling credit card information
d. Tax evasion
12. Jerry Jordan was the former president of what
a. The United States
b. Microsoft
c. Federal Reserve Bank of Cleveland* pg 70
d. The senate
13.
Short Answer
1. Create an example of an externality?
2. What are the rules for a functional market economy?
3. Name three ways the government lowers the cost of doing business in the private sector and explain how.
4. Why would the Czech Republic