first exam, page two\n7. which of the following statements about market transactions is not true?\na. they…

first exam, page two\n7. which of the following statements about market transactions is not true?\na. they may be prohibited if society believes that they are not voluntary and informed.\nb. society may disallow them if they threaten to create harmful economic inequalities.\nc. they can sometimes degrade the goods and services being exchanged.\nd. none of the above\n8. all of the following are regarded as unfair competition under u.s. law except:\na. use of a patented technology owned by others without their authorization\nb. use of trade secrets owned by others without their authorization\nc. taking customers away from competitors through innovation and advertising\nd. none of the above\n9. which of the following statements about economic models is not correct?\na. they consist of multivariate functions that relate economic variables.\nb. they incorporate all of the available detailed information about the relevant markets.\nc. they describe the most important economic relationships operating in a market.\nd. one such model is used to analyze some markets with demand/supply curves.\n10. an important form of price competition in several industries takes the form of\na. confidential discounts off list prices, which sellers often give to large customers.\nb. participation in collusive pricing by the leading firms in an industry.\nc. investments in rent - seeking through the political system.\nd. all of the above\n11. those who reject market economies argue that they cause great social harms by\na. providing unfair advantages to the rich, by virtue of their superior purchasing power.\nb. creating large economic inequalities that can foster social conflict and class domination.\nc. degrading character by fostering greed, selfishness, and pathological materialism.\nd. all of the above\n12. if we observe a negative association (correlation) between the average age of a population and its per capita consumption of milk, then\na. we can be confident that there is a causal linkage between these two variables.\nb. we cannot infer from this evidence that there is a causal linkage between these variables.\nc. governments know that they can boost milk consumption by reducing population aging.\nd. we know that one variable causes the other, but we dont know the direction of causation.

first exam, page two\n7. which of the following statements about market transactions is not true?\na. they may be prohibited if society believes that they are not voluntary and informed.\nb. society may disallow them if they threaten to create harmful economic inequalities.\nc. they can sometimes degrade the goods and services being exchanged.\nd. none of the above\n8. all of the following are regarded as unfair competition under u.s. law except:\na. use of a patented technology owned by others without their authorization\nb. use of trade secrets owned by others without their authorization\nc. taking customers away from competitors through innovation and advertising\nd. none of the above\n9. which of the following statements about economic models is not correct?\na. they consist of multivariate functions that relate economic variables.\nb. they incorporate all of the available detailed information about the relevant markets.\nc. they describe the most important economic relationships operating in a market.\nd. one such model is used to analyze some markets with demand/supply curves.\n10. an important form of price competition in several industries takes the form of\na. confidential discounts off list prices, which sellers often give to large customers.\nb. participation in collusive pricing by the leading firms in an industry.\nc. investments in rent - seeking through the political system.\nd. all of the above\n11. those who reject market economies argue that they cause great social harms by\na. providing unfair advantages to the rich, by virtue of their superior purchasing power.\nb. creating large economic inequalities that can foster social conflict and class domination.\nc. degrading character by fostering greed, selfishness, and pathological materialism.\nd. all of the above\n12. if we observe a negative association (correlation) between the average age of a population and its per capita consumption of milk, then\na. we can be confident that there is a causal linkage between these two variables.\nb. we cannot infer from this evidence that there is a causal linkage between these variables.\nc. governments know that they can boost milk consumption by reducing population aging.\nd. we know that one variable causes the other, but we dont know the direction of causation.

Answer

Brief Explanations:

  • Question 7: Market transactions are not inherently de - grading to goods and services. Statements a and b are valid reasons for society to restrict transactions.
  • Question 8: Innovation and advertising to take customers away is normal competition, while using others' patents or trade secrets without authorization is unfair competition.
  • Question 9: Economic models are simplifications and do not incorporate all available detailed information.
  • Question 10: Confidential discounts to large customers are a form of price - competition. Collusive pricing and rent - seeking are not normal forms of price - competition.
  • Question 11: All the reasons in a, b, and c are common arguments against market economies.
  • Question 12: A negative correlation does not imply causation.

Answer:

  1. c
  2. c
  3. b
  4. a
  5. d
  6. b