Multiple Choice 1
True or False
Short Response
Multiple choice 2
Misc.
100
What was Ricardo's main focus? A. Free trade B. The role of the government C. Both A & B D. Supply and demand.
What is my name?
100
In 1809 Ricardo debuted as a playwright.
False.
100
What TV Show example did the chapter use to discuss the absolute advantage trade model.
Gilligan's Island.
100
What did Ricardo write? A. Treaty of Versailles B. The principle of modern economic thinking C. The wealth of nations D. The principles of political economy and taxation
D. The principle of political economy and taxation.
100
Who was the economist that disagreed with Ricardo but later became a good friend and became part of his will? A. John M. Keynes B. Adam Smith C. Thomas Malthus D. George Orwell
C. Thomas Malthus
200
What example was claimed to be a “strong weapon against free trade”? (in Caribbean and Latin America) a. papaya b. bananas c. pineapples d. guava
B. Bananas
200
Ricardo believed that farming produced diminshing returns.
True.
200
What were the corn laws?
Prohibited imports of grains below a certain price.
200
Which organization promoted free trade and was joined by many nations after World War II? a. IMF(International Monetary Fund) b. WTO(World Trade Organization) c. GATT(General Agreement on Tariffs and Trade) d. AEA(American Economic Association)
C. GATT (General Agreement on Tariffs and Trade)
200
Who was David Ricardo? A. Cousin to Malthus. B. The son of an educated philosopher. C. Nephew of Adam Smith. D. The son of a Jewish immigrant.
D. The son of a Jewish immigrant.
300
Ricardo depicts tenant workers as: A. Mercantilists who are self sufficient and have no link with the country's economy. B. Cultivators of the land. C. Capitalists who rent the land, hire workers, and make profits. D. None of the above.
C. Capitalists who rent the land, hire workers, and make profits.
300
Ricardo supported the idea of "general gluts" (Supply is greater than demand).
False.
300
State and briefly describe Ricardo's theory on trade.
State and briefly describe Ricardo's theory on trade. Comparative advantage. Countries should specialize in products in which they have a lower opportunity cost.
300
Schumpeter and Keynes both accused Ricardo of choosing assumptions or examples that ensured the result he desired. What did Schumpeter called this? a. Ricardian Vice b. Craftsperson c. Vice Ganda d. Credit
A. Ricardian Vice
300
TRUE OR FALSE. Free trade makes it possible for households to consume less goods regardless of whether trading partners are more or less economically advanced.
False.
400
Ricardo saw that (based on Malthus population principles) 1.increasing population leads to higher demand for food 2.which leads to extending farming to less fertile lands 3. 4. which leads to higher prices for food 5. which leads to paying workers more 6. which leads to lower profits for entrepreneurs 7. which leads to higher payments to those who own the best lands What is #3? a. higher cost in farming b. lower cost in farming c. no change in cost
A. Higher cost in farming
400
SAY'S LAW STATES THAT: Workers and owners of land and capital are paid wages, rents, and interests that add up to the sale price of the product.
True
400
What did Malthus and Ricardo both underestimate?
The "restraint" of workers.
400
What are “general gluts”? A. The branch of knowledge concerned with the production, consumption, and transfer of wealth. B. Condition of a region or group as regards material prosperity C. The part of a nation’s balance of payments that deals merchandise D. When businesses sometimes supply more goods and services than people want to buy.
D. When businesses sometimes supply more goods and services than people want to buy.
400
TRUE OR FALSE. Ricardo agrees with Adam Smith that farmers/capitalists have a desire to invest in the most profitable projects.
True
500
Ricardo saw Britain's future as: I. A mercantilist who liked exporting but hated importing products. II. A protectionist who barricaded against foreign goods. III. An outgoing trader who would become part of the world's workshop. A. I B. II C. II, III D. I, II, III
C. II, III
500
Ricardo focused more intensely on intricate sequence of steps along the way AND Malthus found a general principle and then applied it to the world.
True
500
Discuss 2 of 4 rebuttals that Malthus made against the Corn Laws.
-Corn Laws induced more domestic grain output because they boosted grain prices. - Grain was too important a commodity to be left to foreign producers. -Higher grain prices actually increased wages to workers. -Higher wages would more than compensate for higher food prices.
500
What is economic rent? A. Payment that is used to buy a resource. B. An "extra payment" beyond that which is necessary for a resource to function. C. A type of transfer earning. D. What landowners pay to the government.
B. An "extra payment" beyond that which is necessary for a resource to function.
500
What is a transfer earning?
Payment that keeps land, labor, or capital in a particular use.
M
e
n
u