Question 1

Which of the following is NOT an assumption of the Robinson Crusoe economy presented by Milton Friedman?

Accepted Answer

A)   each household in the economy is an independent producer.
B)   each household exchanges its goods and services for other goods and services produced by other households.
C)   each household exchanges goods and services freely and voluntarily.
D)   each household pays a fixed percentage of income to the government.

Question 2

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy.
-Briefly describe the Robinson Crusoe metaphor underpinning the traditional economics perspective.

Accepted Answer

The answer of Compare and contrast the two views in...

Question 3

Explain the key differences between neoclassical economics and progressive political economy.
-What are the two key assumptions that neoclassical economists make about individuals? What are those assumptions used for?

Accepted Answer

The answer of Explain the key differences between neoclassical economics...

Question 4

The text distinguishes between two perspectives in microeconomics. These two perspectives are

Accepted Answer

A)   Republican and Democrat
B)   Libertarian and Mercantilist
C)   Progressive and Neoclassical
D)   Mercantilist and Capitalist

Question 5

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy.
-What shortcomings do critical economists see in the neoclassical use of the Robinson Crusoe metaphor?

Accepted Answer

The answer of Compare and contrast the two views in...

Question 6

Progressive economists identify the relationships between groups in a economy as

Accepted Answer

A)   fundamentally in harmony.
B)   often in conflict.
C)   less important than relationships between individuals.
D)   united in their opposition to government.

Question 7

The text mentions several well-known neoclassical and progressive economists. Which of the following is a true statement?

Accepted Answer

A)   Milton Friedman is a well-known progressive economist.
B)   Robinson Crusoe is a well-known neoclassical economist.
C)   John Maynard Keynes is a well-known progressive economist.
D)   Karl Marx is a well-known neoclassical economist

Question 8

What is microeconomics?

Accepted Answer

A)   microeconomics is the study of how individual consumers, firms, and workers make decisions about production and consumption.
B)   microeconomics is the study of how individual consumers, firms, and workers make decisions about the aggregate economy.
C)   microeconomics is the study of how the economy as a whole behaves.
D)   microeconomics is the study of business cycles, inflation and economic growth.

Question 9

Explain the key differences between neoclassical economics and progressive political economy.
-What role should the government play according to neoclassical economists? According to progressive political economists?

Accepted Answer

The answer of Explain the key differences between neoclassical economics...

Question 10

The basic unit of analysis in neoclassical economics is

Accepted Answer

A)   the util
B)   the economy
C)   the individual
D)   relationships between groups in the economy. C

Question 11

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy.
-How does relative power enter into transactions between employers and employees?

Accepted Answer

The answer of Compare and contrast the two views in...

Question 12

The basic unit of analysis in progressive economics is

Accepted Answer

A)   the util
B)   the economy
C)   the individual
D)   relationships between groups in the economy.

Question 13

Describe how the different models or views of neoclassical economists and progressive political economy lead to different policies in dealing with social issues.
-Should the government do much spending in the economy according to neoclassical economists? Why or why not?

Accepted Answer

The answer of Describe how the different models or views...

Question 14

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy.
-What happens if transactions are not voluntary? Can you give an example of a transaction that might not be voluntary?

Accepted Answer

If a transaction is not voluntary, then exchange cannot be assumed to be the outcome of free choice Workers in a modern economy may be free to sell their labor to whomever they want, but ultimately they must sell their labor to a capitalist unless they own their own capital

Question 15

Whats defention of terms:
-neoclassical economics

Accepted Answer

The answer of Whats defention of terms:
-neoclassical economics...

Question 16

What role should the government play in the economy according to neoclassical economists?

Accepted Answer

A)   neoclassical economists believe the government should intervene to stabilize business cycles.
B)   neoclassical economists believe the government should not intervene to stabilize business cycles.
C)   neoclassical economists believe the government should intervene in order to increase social equality.
D)   neoclassical economists believe the government should not intervene in the economy except in the area of health care.

Question 17

Describe how the different models or views of neoclassical economists and progressive political economy lead to different policies in dealing with social issues.
-What do the neoclassical economists have to say about taxes? How do taxes interfere with the individual?

Accepted Answer

The answer of Describe how the different models or views...

Question 18

Explain the key differences between neoclassical economics and progressive political economy.
-Neoclassical economists talk about how individuals are free to spend their dollars in the market. What does this mean? What problems do progressive political economists see with this "freedom"?

Accepted Answer

The answer of Explain the key differences between neoclassical economics...

Question 19

Whats defention of terms:
-progressive political economists

Accepted Answer

The answer of Whats defention of terms:
-progressive political economists...

Question 20

What is the basic policy conclusion of neoclassical economics

Accepted Answer

A)   free-market capitalism in inherently unstable and occasionally requires government intervention.
B)   free-market capitalism works well as long as government does not intervene in the economy.
C)   free-market capitalism is exploitative and oppressive and should be replaced by a more equitable system.
D)   free-market capitalism is imperfect but can be reformed to improve social outcomes. B

Exam 17: Robinson Crusoe Two Perspectives on Microeconomics

Which of the following is NOT an assumption of the Robinson Crusoe economy presented by Milton Friedman?

Correct AnswerverifiedShow Answer

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy. -Briefly describe the Robinson Crusoe metaphor underpinning the traditional economics perspective.

Correct AnswerverifiedShow Answer

Explain the key differences between neoclassical economics and progressive political economy. -What are the two key assumptions that neoclassical economists make about individuals? What are those assumptions used for?

Correct AnswerverifiedShow Answer

The text distinguishes between two perspectives in microeconomics. These two perspectives are

Correct AnswerverifiedShow Answer

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy. -What shortcomings do critical economists see in the neoclassical use of the Robinson Crusoe metaphor?

Correct AnswerverifiedShow Answer

Progressive economists identify the relationships between groups in a economy as

Correct AnswerverifiedShow Answer

The text mentions several well-known neoclassical and progressive economists. Which of the following is a true statement?

Correct AnswerverifiedShow Answer

What is microeconomics?

Correct AnswerverifiedShow Answer

Explain the key differences between neoclassical economics and progressive political economy. -What role should the government play according to neoclassical economists? According to progressive political economists?

Correct AnswerverifiedShow Answer

The basic unit of analysis in neoclassical economics is

Correct AnswerverifiedC

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy. -How does relative power enter into transactions between employers and employees?

Correct AnswerverifiedShow Answer

The basic unit of analysis in progressive economics is

Correct AnswerverifiedShow Answer

Describe how the different models or views of neoclassical economists and progressive political economy lead to different policies in dealing with social issues. -Should the government do much spending in the economy according to neoclassical economists? Why or why not?

Correct AnswerverifiedShow Answer

Compare and contrast the two views in the case of a hypothetical "Robinson Crusoe" economy. -What happens if transactions are not voluntary? Can you give an example of a transaction that might not be voluntary?

Correct AnswerverifiedIf a transaction is not voluntary, then exchange cannot be assumed to be the outcome of free choice Workers in a modern economy may be free to sell their labor to whomever they want, but ultimately they must sell their labor to a capitalist unless they own their own capital

Whats defention of terms: -neoclassical economics

Correct AnswerverifiedShow Answer

What role should the government play in the economy according to neoclassical economists?

Correct AnswerverifiedShow Answer

Describe how the different models or views of neoclassical economists and progressive political economy lead to different policies in dealing with social issues. -What do the neoclassical economists have to say about taxes? How do taxes interfere with the individual?

Correct AnswerverifiedShow Answer

Explain the key differences between neoclassical economics and progressive political economy. -Neoclassical economists talk about how individuals are free to spend their dollars in the market. What does this mean? What problems do progressive political economists see with this "freedom"?

Correct AnswerverifiedShow Answer

Whats defention of terms: -progressive political economists

Correct AnswerverifiedShow Answer

What is the basic policy conclusion of neoclassical economics

Correct AnswerverifiedB

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C

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If a transaction is not voluntary, then exchange cannot be assumed to be the outcome of free choice Workers in a modern economy may be free to sell their labor to whomever they want, but ultimately they must sell their labor to a capitalist unless they own their own capital

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B