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Practice Quiz
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1
Milton Friedman, who believes that profits are the only business of business, maintains that
A)businesses should obey their stockholders.
B)profits should be held to reasonable levels.
C)businesses should break laws if it raises their profits.
D)businesses should not decide what is socially responsible.
2
Robert Almeder, who does not believe that profits are the only business of business, asserts that
A)overregulation of business is dangerous.
B)corporate managers will never "do the right thing."
C)only regulation will keep businesses in line.
D)all businesses should follow the same moral code.
3
Central to Ira T. Kay's argument is the statement that the CEOs of well-run companies:
A)receive approximately 1 percent of their corporations' net income.
B)produce significant shareholder returns.
C)provide job security for millions of workers.
D)all of the above
4
Edgar Woolard, Jr., is deeply saddened by:
A)the loss of respect experienced by America's corporate leaders.
B)overblown media reports on corporate fraud.
C)the shortage of CEO talent coming out of today's universities.
D)his company's bankruptcy.
5
Edwin G. Foulke, Jr., who believes that OSHA is working effectively to protect the safety of construction workers, reports that in 2001, OSHA improved on the prevention of falls by modifying a provision in the new steel-erection standard to allow the use of:
A)bungee cords.
B)harnesses.
C)nets.
D)fully planked floors.
6
In his description of the safety problems within the construction industry, Mark H. Ayers, who believes that OSHA is not working effectively to protect the safety of construction workers, points out that the leading cause of death in the industry is:
A)equipment malfunction.
B)trenching.
C)falling.
D)electrocution.
7
As brought out by McClellan, the enhanced preventive benefits and coverage options provided by MMA will enjoy greater public awareness with the campaign known as:
A)The Bush Elder-Care Initiative.
B)My Health. My Medicare.
C)Old Age. New Drugs.
D)Retire Well.
8
Gokhale gives a general thumbs-down to MMA by asserting that it was:
A)a communist manifesto.
B)the bad brainchild of a liberal president.
C)over-thought and ill-thought.
D)hastily passed.
9
The American Benefits Council, which believes that HSAs are working effectively, identifies itself as a national trade association representing principally:
A)Fortune 500 companies.
B)small, well-established companies.
C)the blue-collar labor force.
D)the medical and pharmaceutical industries.
10
Linda J. Blumberg, who does not believe that HSAs are working effectively, quotes Paul Ginsburg when she establishes the premise that effective comparison of healthcare services on price occurs only in the context of:
A)non-emergency care.
B)services that are not complex.
C)when an appropriate diagnosis has already been made.
D)all of the above.
11
The U.S. Department of Health and Human Services, which believes that it is time to reform medical malpractice litigation, asserts all of the following except
A)malpractice litigation without damage caps threatens access to care.
B)the current litigation system curbs physician negligence and mistakes.
C)malpractice litigation without damage caps jeopardizes patient safety.
D)malpractice litigation without damage caps increases health care costs.
12
Jackson Williams, who does not believe that it is time to reform medical malpractice litigation, asserts all of the following except
A)doctors withdraw from practice because of increases in office rent or payroll costs, not in insurance coverage costs.
B)the current litigation system curbs physician negligence and mistakes.
C)costs of litigation exceed costs of medical injuries.
D)the medical malpractice litigation process is logical.
13
In the opinion of the Los Angeles County Economic Development Corporation (LAEDC), which believes that Wal-Mart is good for the economy, critical to determining the potential impact of Wal-Mart Supercenters is
A)the strength of the local economy.
B)fluctuations in the U.S. economy.
C)the speed of population growth.
D)timing.
14
Due to its goal of maintaining low wages and poor working conditions, the Democratic Staff of the House Committee on Education and the Workforce, which does not believe that Wal-Mart is good for the economy, finds a symbiosis between Wal-Mart and
A)Bangladesh.
B)China.
C)Honduras.
D)Mexico.
15
According to the White House, which believes that Social Security should be changed to include personal retirement accounts (PRAs), personal retirement account options and management would be similar to the structure of the
A)Securities and Exchange Commission (SEC).
B)Federal Deposit Insurance Corporation (FDIC).
C)Thrift Savings Plan (TSP).
D)none of the above
16
Dean Baker, who does not believe that Social Security should be changed to include PRAs, attributes the success of the "crisis story" with regard to Social Security to
A)the use of descriptive language in framing the issue.
B)calculated deception of the U.S. media.
C)the manipulation of the president by others in the Bush administration.
D)the use of questionable data to support the existence of a crisis.
17
Rebecca Blank, who believes that unemployment benefits should be extended, says the most important reason for unemployment rates in 2008 not being entirely comparable to those from earlier periods is the:
A)slowing growth in nominal wages.
B)diminishing share of the population looking for work.
C)rising share of younger men in jail or prison.
D)shifting age distribution of the civilian labor force.
18
Alex Brill, who does not believe that unemployment benefits should be extended, states that the aggregate growth of the U.S. economy is:
A)climbing very slowly, but definitely climbing.
B)in a temporary, but measurable descent.
C)in an erratic yo-yo mode.
D)at a near standstill.
19
Travis B. Plunkett, who believes that American consumers need a credit card bill of rights, observes that for every 250 credit card solicitations received in the mail, consumers reject:
A)more than 249.
B)about half.
C)between 50 and 75.
D)fewer than 2.
20
John P. Carey, who does not believe that American consumers need a credit card bill of rights, supports the proposed changes to federal Regulation Z, saying that these changes would move credit card disclosures toward the successful model of:
A)attorney-client privilege.
B)public domain.
C)food labeling.
D)free credit reports.
21
According to MacKenzie, when minimum wages go up, employers are forced to dismiss low-productivity workers, a policy that has the most negative effect on those with the least:
A)education.
B)job experience.
C)maturity.
D)all of the above
22
Wicks-Lim says it is difficult to report on the actual consequences to employers in the wake of wage laws' ripple effects because:
A)employers are reluctant to admit that they feel no adverse consequences.
B)research on ripple effects has been sparse.
C)wage laws have been enacted only once since 1938.
D)ripple effects are essentially imaginary.
23
Malanga's assessment of America's immigrants includes a mention of Asian entrepreneurs, who:
A)run businesses despite their largely undocumented status.
B)helped revive inner-city Los Angeles, thus being exceptions to the negative immigrant norms.
C)have done more to build the drug and pornography trades in the United States than any other group.
D)are involved in more organized crime than the Mafia.
24
Furchtgott-Roth explains that the "unskilled labor force" is defined as those who:
A)have just joined the workforce.
B)do not have high school diplomas.
C)are under the age of 25.
D)work in one of the "F" industries: factories, farms, and food services.
25
Joseph E. Stiglitz, who believes that a fair-trade policy is superior to a free-trade policy, explains that among the impediments to expanding exports are internal barriers to trade, such as the absence of infrastructure, which highlights the need for:
A)developing countries to open up their markets to foreign banks.
B)trade liberalization.
C)subsidized imports.
D)aid-for-trade.
26
Gary Hufbauer, who does not believe that a fair-trade policy is superior to a free-trade policy, identifies certain trade issues as the most important items on the new U.S. president’s agenda, including the ratification of pending free-trade agreements with:
A)Indonesia and Afghanistan.
B)Malaysia and Colombia.
C)North Korea and the Dominican Republic.
D)South Korea and Panama.
27
David G. Kittle, who believes that loan mitigation is the answer to the housing foreclosure problem, identifies the only winner in a property foreclosure as:
A)the lender.
B)the servicer.
C)the borrower.
D)no one.
28
Julia Gordon, who does not believe that loan mitigation is the answer to the housing foreclosure problem, speaks in favor of a temporary deferment plan that provides a much-needed “timeout” to enable lenders and servicers to increase their capacities to meet current need, for credit markets to stabilize, and for legislative solutions. Specifically, this is the plan defined by the:
A)Emergency Home Ownership and Mortgage Equity Protection Act.
B)Home Retention and Economic Stabilization Act.
C)Foreclosure Prevention and Sound Mortgage Servicing Act.
D)Fair Debt Collection Practices Act.
29
Bob Dinneen, who believes that biofuels like ethanol reduce U.S. dependence on foreign oil, points out that the ethanol industry is moving toward cleaner energy use and is reducing its:
A)overall waste ratio.
B)water consumption.
C)carbon dioxide emissions.
D)operating costs.
30
Charles T. Drevna, who does not believe that biofuels like ethanol reduce U.S. dependence on foreign oil, argues that, if every gallon of biofuels is mandated, there is no:
A)future for mass transportation.
B)incentive for the American carmaker.
C)foreign trade.
D)free market.
31
As described by Edwards, federal deficits can be thought of as:
A)signs of a growing economy.
B)minor fiscal problems.
C)short-term, interest-free loans.
D)deferred taxes on future generations.
32
According to Stenholm, the United States has sustained large budget deficits without a rise in domestic interest rates because the increased borrowing has been offset by an increased inflow of:
A)corporate donations.
B)capital from global markets.
C)federal taxes.
D)state taxes.
33
Melle sets forth all of the following claims regarding NAFTA, except that:
A)NAFTA partners are investing more in each other's economies.
B)the rest of the world is investing more in the NAFTA nations' economies.
C)wage gaps are closing in all NAFTA countries.
D)NAFTA remains a vibrant agreement.
34
Polaski reports that, during the NAFTA years, a trend of wages and household incomes moving toward more inequality, with most gains going to the upper 20 percent of households and higher-skilled workers, has been occurring in:
A)Canada.
B)the U.S.
C)Mexico.
D)all three countries.
35
George Miller, who believes that the testing and accountability elements of the No Child Left Behind Act prevent a proper cost-benefit evaluation, maintains that no factor matters more to children’s educational success than the quality of their:
A)community.
B)teachers.
C)home life.
D)school facility.
36
Raymond Simon, who does not believe that the testing and accountability elements of the No Child Left Behind Act prevent a proper cost-benefit evaluation, provides some background information with his discussion of the Elementary and Secondary Education Act of 1965 and its 1994 reauthorization, known as the:
A)Improving America’s Schools Act.
B)Educator Roundtable.
C)Public Education Reform.
D)National Commission on Excellence in Education.
37
James M. Cypher, who believes that the inequality in U.S. income distribution is surging, sets forth the premise that U.S. corporations and their wealthy owners had the means, the motive, and the opportunity to rake in a larger share of the nation’s income—and they did so, beginning in the
A)1920s.
B)1940s.
C)1970s.
D)1990s.
38
Diana Furchtgott-Roth, who does not believe that the inequality in U.S. income distribution is surging, maintains that consumption spending generally has fewer fluctuations than:
A)income.
B)investment spending.
C)debt management.
D)taxation.
39
George W. Bush, who believes that the Treasury’s $700 billion bailout is the solution to the credit crisis, states that the proposed “rescue effort” is aimed at preserving:
A)individual companies.
B)individual industries.
C)America’s overall economy.
D)all of the above.
40
Newt Gingrich, who does not believe that the Treasury’s $700 billion bailout is the solution to the credit crisis, points out that the obligation to limit the executive branch to the rule of law belongs to:
A)the Supreme Court.
B)Congress.
C)the White House.
D)the American people.





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