Question :
121.SupposethestateofWyomingpassesalawthatincreasesthetaxoncigarettes.Asaresult,smokerswholiveinWyomingstartpurchasingtheircigarettesinsurroundingstates.Whichofthefollowingprinciplesdoesthisbestillustrate?
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121.SupposethestateofWyomingpassesalawthatincreasesthetaxoncigarettes.Asaresult,smokerswholiveinWyomingstartpurchasingtheircigarettesinsurroundingstates.Whichofthefollowingprinciplesdoesthisbestillustrate?
a.Peoplerespondtoincentives.
b.Rationalpeoplethinkatthemargin.
c.Tradecanmakeeveryonebetteroff.
d.Marketsareusuallyagoodwaytoorganizeeconomicactivity.
122.Governmentpoliciescanchangethecostsandbenefitsthatpeopleface.Thosepolicieshavethepotentialto
a.alterpeople’sbehavior.
b.alterpeople’sdecisionsatthemargin.
c.produceresultsthatpolicymakersdidnotintend.
d.Alloftheabovearecorrect.
123.RalphNader’sbookUnsafeatAnySpeedcausedCongresstorequire
a.safetyglassinallnewcars.
b.seatbeltsinallnewcars.
c.airbagsinallnewcars.
d.stricterdrunkdrivinglawsinallstates.
124.Followingtheimplementationoflawsrequiringautomobilestohaveseatbelts,whichofthefollowingoccurred?
a.Anindividual’sprobabilityofsurvivinganautoaccidentrose.
b.Therewasanincreaseinpedestriandeaths.
c.Therewasanincreaseinautomobileaccidents.
d.Alloftheabovearecorrect.
125.U.S.lawsrequiringthatdriverswearseatbeltshaveresultedin
a.areductioninbothdriverdeathsandpedestriandeaths.
b.feweraccidentsandfewerdeathsperaccident.
c.fewerdriverdeaths,feweraccidentsandfewerpedestriandeaths.
d.littlechangeinthenumberofdriverdeaths,butmoreaccidentsandmorepedestriandeaths.
126.Evidenceindicatesthatseatbeltlawshaveledto
a.fewerpedestriandeaths.
b.fewerautomobileaccidents.
c.fewerdeathsperautomobileaccident.
d.Alloftheabovearecorrect.
127.Oneeffectofthegovernment-imposedseatbeltlawintheU.S.hasbeen
a.adramaticdecreaseinthenumberofpedestriandeaths.
b.saferdriving.
c.anincreaseinthenumberofaccidents.
d.adramaticdecreaseinthenumberofdriverdeaths.
128.Basedontheavailableevidence,whichofthefollowinggroupsbenefitsmostfrommandatoryseatbeltlaws?
a.automakers
b.pedestrians
c.drivers
d.ownersofcollision-repairshops
129.Whichofthefollowingcanpolicydo?
a.alterincentives
b.altertrade-offs
c.changeopportunitycosts
d.Alloftheabovearecorrect.
130.SupposethestateofIllinoispassesalawthatbanssmokinginrestaurants.Asaresult,residentsofWisconsinwhodonotlikebreathingsecond-handsmokebegindrivingacrossthebordertoIllinoistoeatatrestaurantsthere.Whichofthefollowingprinciplesdoesthisbestillustrate?
a.Peoplerespondtoincentives
b.Rationalpeoplethinkatthemargin
c.Tradecanmakeeveryonebetteroff
d.Marketsareusuallyagoodwaytoorganizeeconomicactivity
131.IntheformerSovietUnion,producerswerepaidformeetingoutputtargets,notforsellingproducts.Underthosecircumstances,whatweretheeconomicincentivesforproducers?
a.toproducegoodqualityproductssothatsocietywouldbenefitfromtheresourcesused
b.toconserveoncosts,soastomaintainefficiencyintheeconomy
c.toproduceenoughtomeettheoutputtarget,withoutregardforqualityorcost
d.toproducethoseproductsthatsocietydesiresmost
132.Whichofthefollowingprinciplesisnotoneofthefourprinciplesofindividualdecisionmaking?
a.Peoplefacetradeoffs.
b.Tradecanmakeeveryonebetteroff.
c.Peoplerespondtoincentives.
d.Rationalpeoplethinkatthemargin.
133.Whichofthefollowingstatementsexemplifiesaprincipleofindividualdecisionmaking?
a.Tradecanmakeeveryonebetteroff.
b.Governmentscansometimesimprovemarketoutcomes.
c.Thecostofsomethingiswhatyougiveuptogetit.
d.Alloftheabovearecorrect.
134.Whichof thefollowing isnotanexampleofagrouprespondingtoanincentive?
a.Studentsattendclassbecauseofanattendancepolicythatreducestheirgradeforabsences.
b.Consumersbuymoreofaproductwhenitisonsaleatareducedprice.
c.Universitiesofferfeweronlineclasseswhentheygeneratemorerevenuethantraditionalclasses.
d.Employeesworkhardertoearnhighercommissions.