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1. John Maynard Keynes referred to economics as an easy subject,
a.
at which very few excel.
b.
but not as easy as philosophy or the pure sciences.
c.
which very few can enjoy.
d.
which deals primarily with common sense.
2. How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject
compared with the higher branches of philosophy or pure science, it is a subject at which few excel?
a.
Most people who study economics are not very bright.
b.
Good economists must possess a rare combination of gifts.
c.
Economics is quite boring; hence, people tend to lose interest in it before mastering it.
d.
Good thinkers become frustrated with economics because it does not make use of the scientific method.
3. According to economist John Maynard Keynes, a great economist must also be a(n)
a.
mathematician.
b.
historian.
c.
philosopher.
d.
All of the above are correct.
4. John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not
one of the reasons Keynes gave for why so few people excel at the study of economics?
a.
An economist must also be a mathematician, historian, statesman, and philosopher in some degree.
b.
An economist must understand symbols and speak in words.
c.
An economist must be purposeful and disinterested in a simultaneous mood.
d.
An economist must understand environmental science, regulation, and political science.
5. Which of the following is not something that John Maynard Keynes used to describe an economist?
a.
He must be a mathematician, historian, statesman, and philosopher in some degree.
b.
He must understand symbols and speak in words.
c.
He must only contemplate in abstract and general terms.
d.
He must study the present in light of the past for purposes of the future.
6. Irregular fluctuations in economic activity are known as the
a.
business cycle.
b.
broken window fallacy.
c.
tradeoff between inflation and unemployment.
d.
ten principles of economics.
7. The “broken window fallacy”
a.
explains why inflation is so high.
b.
is a justification for the government to print more money.
c.
is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
d.
has nothing to do with public policy.
8. When a government program is justified not on its merits but on the number of jobs it will create,
a.
the program is an efficient use of taxpayer dollars.
b.
it should be approved only if the unemployment rate is low.
c.
taxes should be raised to fund the program.
d.
it is known as the “broken window fallacy.”
9. Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will
create 450 new jobs for his residents. As a student of economics, you know that
a.
this is a case of the “broken window fallacy.”
b.
this is a great use of taxpayer dollars.
c.
this policy diverts money from spending somewhere else in the economy.
d.
Both a and c are correct.
