2024 – 1 According to Smith when private individuals are left free to seek their own interests in free markets

1. According to Smith, when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by an “invisible hand.” 
True
False

2. The basic problem underlying the views of the social Darwinist is the fundamental normative assumption that survival of the fittest means survival of the best.
True
False

3. According to the text, Zimbabwe is the number two ranking region in sub-Sahara Africa for high HIV and AIDS outbreaks.
True
False

1. Social Darwinists had a different take on the utilitarian justification for free markets. They argued that economic competition would not produce human progress.
True
False

2. Locke’s view that labor creates property rights has been influential in the U.S.
True
False

3. Karl Marx offers the most critical view of modern private property and free market institutions. Marx claims that free-market capitalism necessarily produces:
Extremes of inefficiency
Extremes of efficiency
Extremes of equality
Extremes of inequality

1.  Question :  The consumers who think ahead, consider, and watch every penny they spend, knowing how their choices will affect their preferences are known as:
Irrational utility minimizers
Rational utility maximizers
Rational consumption maximizers
All the above

2.  Question :  The ________ theory of business’ duties to consumers claims that a business has four main moral duties: the basic duty of (a) complying with the terms of the sales contract, and the secondary duties of (b) disclosing the nature of the product, (c) avoiding misrepresentation, and (d) avoiding the use of duress and undue influence.
Contractual
Commercial
Competitive
Consumptive
 

3.  Question :  Critics to the market approach respond that the benefits of free markets are obtained only when the markets have all of the seven defining characteristics. Several of these are:
There are numerous buyers and sellers.
Everyone can freely enter and exit the market.
The market is unregulated.
All the above
A & B

1.  Question :  In the Market Approach to consumer protection, if consumers do not place a high value on safety (or are unwilling to pay for it), then it is wrong to force them to accept higher levels of safety through regulation.
True
False
 

2.  Question :  Research has shown people are irrational and inconsistent when weighing choices based on probability estimates of future costs and payoffs.
True
False

 
3.  Question :  The most common criticism of advertising concerns its effect on the consumer’s beliefs.
True
False

1.  Question :  The due care theory of the manufacturer’s duties to consumers is based on the idea that consumers and sellers do not meet as equals and that the consumer’s interests are particularly vulnerable to being harmed by the manufacturer, who has a knowledge and an expertise that the consumer lacks.
True
False
 
2.  Question :  Although there are some advertisements that are intended to manipulate, such advertisements do not violate the consumer’s right to be treated as a free and equal rational being.
True
False

 

3.  Question :  __________is privacy with respect to a person’s inner life. This includes the person’s thoughts and plans, personal beliefs and values, feelings, and wants.
Physical privacy
Personal privacy
Psychological privacy 
Spiritual privacy