ECON301 Final Exam - History of Economic Ideas | Practice Test / Quiz / MCQs

1. How did Jevons differ from Ricardo in his view of human labor?

Jevons understood labor as having a certain uniform power, with skilled producers being an exception to the rule.Jevons viewed the ability of humans as infinitely varied, whether by nature or by education, meaning people vary to a great degree in their capacity to produce different products or to provide different services.Jevons attempted to assign a mathematical quantity to Ricardo's notion of human labor as a certain uniform power.Jevons and Ricardo both understood labor as having a certain uniform power, but Jevons gave greater weight to education and training in allowing for differences in production.

2. If utilitarianism were said to be a kind of worldview, what would that worldview be?

That truth is found through use, meaning through trial and error as opposed to formal abstractionThat the most virtuous life is a life led with humility and a disdain for extravaganceThat life is comprised of nothing more than the production and consumption of material goodsThat all understanding and explanations of human behavior can be reduced entirely to the notion that humans seek to maximize pleasure and minimize pain

3. What was Pigou's primary contribution to economics?

Developing a poverty indexShowing how externalities were paid for primarily by the poorRelating the concept of a national income to the general welfare of society by employing the marginal method in analyzing the welfare implications of incomeShowing how marginal utility did not apply to the poor

4. Which of the following was the primary academic concern of the Vienna Colloquium during the interwar period?

The measurement of individual pleasure and pain through the use of cognitive psychologyWays to improve the German economyThe existence, uniqueness, and stability of general equilibrium as demonstrated through mathematical equationsHow to stabilize international financial flows to prevent international financial instability associated with the gold standard

5. How was Plato's Republic informative from an economic point of view?

By identifying economic cycles in accordance with natural cyclesBy expounding upon and analyzing division of labor, based on the principle of specialization as fundamental to human natureBy defining the nature of humanity in association with agricultural activityBy demonstrating the efficiency of a totalitarian state

6. Which of the following statements regarding Turgot's thought is false?

Turgot introduced the notion of opportunity cost with regard to savings and investment, meaning that not only must the amount of time be taken into account of how long a capital investment might take before returning a profit but opportunities that must bTurgot understood wages as a discount agreed to by workers for receiving present payment rather than waiting for the return on a particular capital investment.Turgot supported usury laws, arguing that it was inaccurate to say that interest was justified because of the unavailability for use by the lender of money lent to a borrower, given that the lender had no guarantee that the money would have otherwise been put to better use.Turgot understood wealth creation as stemming initially from the establishment of a money economy which in turn would allow for savings, investment capital, and profit.

7. Which of the following statements regarding David Ricardo's theory of comparative advantage is false?

Ricardo's proof that states protectionism for domestic industry provided a comparative advantage in competition with other countries proved to be an academic buttress for those holding on to a mercantilist framework for state policy.In contrast to the fundamental tenets of mercantilist thought, Ricardo's theory of comparative advantage was revolutionary in showing how economics and, in particular, trade policy need not be approached as a zero-sum game.Ricardo's theory of comparative advantage could be applied not only to trade policy but to division of labor within a household or on a farm.Ricardo's theory of comparative advantage served as a devastating blow to the notion that state protectionism was necessary to ensure economic growth and the strength of a particular country.

8. According to David Ricardo, how is the value of a good calculated?

The value of a good is apportioned between capital inputs and labor.The value of a good is directly proportional to the amount of human labor used to make it.The value of a good is optimally apportioned among land, labor, and capital.The value of a good is determined by what consumers will pay for it.

9. Which of the following is not a reason why Alexander Hamilton favored the formation of a strong central government for the newly-formed United States?

To balance economic weaknesses and strengths spread across the statesTo best manage the debt incurred from the Revolutionary WarTo make tax collection more efficientTo control and reduce the influence of religious sects on economic issues

10. Under the rule of Charlegmagne, what was the most fundamental effect of the extension of the ban on turpe lucrum (shameful gain) from the clergy to the populace?

A just price became any price set by state authorities.A black market arose for basic foodstuffs.Foreign trade came to a virtual standstill.Local private markets were replaced by state-run warehouses and a system of allotments.

11. Smith argued that the mercantilist system had which of the following effects on business decisions?

The mercantilist system decreased risk-taking because of oligopolistic controls.The mercantilist system decreased uncertainty through the maintenance of established relationships.The mercantilist system increased risk-taking in the hopes of securing monopoly profits.The mercantilist system increased uncertainty because of the lack of public information.

12. Which of the following most simply identifies the difference between classical and neoclassical economic thought?

Unlike classical economic thought, neoclassical economic thought fully developed and employed the concepts associated with the marginal revolution, such as marginal utility and marginal return.Compared to classical economic thought, neoclassical economic thought came to have a better awareness of the balance between the interests of owners and laborers conducive to economic stability.Neoclassical economic thought came to have a better understanding of interest than the understanding held by classical economic thought.Neoclassical economic thought came to have a better understanding of business cycles than the understanding held by classical economic thought.

13. According to Aristotle, which of the following causes revolution most frequently?

Conflict precipitated by the rise of political factionsPoor economic performance and managementOutside influence in the form of foreign intrusion and/or invasionIndifferent and lackluster leadership

14. According to Marshall, during his day and age, what subject in economics had been neglected?

Supply and its role in use valueSupply and its role in exchange valueDemand and its role in exchange valueDemand and its role in use value

15. Which of the following is true and considered to be a basic tenet of the Keynesian framework?

Aggregate savings equals aggregate expenditures.Aggregate income equals aggregate investment.Aggregate savings equals aggregate investment.Aggregate income equals aggregate expenditures.

16. On what economic grounds did Sir William Petty justify a mercantilist production system?

Spain had adopted a mercantilist system earlier than England did, and Spain was winning the economic war.Goods produced by a large number of specialists were made better and cheaper.England had an optimal geography as an island.Raw materials were essentially 'free on board' (f.o.b.) because of the large Royal Navy.

17. Which of the following was not a readily evident problem associated with Bentham's utilitarian framework?

It was difficult to objectively assign units of utility to cognitive states of pleasure and pain, or to having such characteristics as integrity, courage, or humility.Interpersonal comparisons were allowed, but distributional concerns across society were not considered.There did not appear to be concern for any rights of the individual if respect for a particular right meant a reduction in the overall utility of a society.Interpersonal comparisons of utility were not allowed.

18. Which of the following statements regarding Jevons's views on capital and labor is false?

Capital consists of all useful objects which, in supplying labor's ordinary wants and desires, enable labor to defer the results of work for a greater or lesser period of time.Capital and labor are one in the same from an owner's point of view.Without capital, people must have immediate returns; otherwise, they will perish.While the amount of capital is estimated by the amount of deferred utility from its use, the amount of employment of capital is the amount of utility multiplied by the number of units of time during which its enjoyment is deferred.

19. Complete the following sentence. With regard to distribution of resources in a society, Aristotle argues that:

situations and communities are just when individuals receive benefits according to their merits, or virtue: those most virtuous should receive more of whatever goods society is in a position to distribute.resources should be distributed across society to attain the maximum amount of strength and prosperity of the city-state as a whole compared with other city-states.a basic level of resources should be distributed by the political class equally among all citizens to prevent discord and promote harmony, while saving resources for public festivals that celebrate the gods.resources should be distributed away from those who have already crossed a threshold of well-being to help ensure that others will cross this same threshold.

20. What did the Vienna Colloquium find bereft of academic significance?

Marginal utilityInterpersonal comparisons of utilityPigou's notion of a national dividend and its relation to welfareMarginal returns on capital inputs

21. Consider and analyze the following quote. 'By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it.' This quote is associated with which economic concept?

The diamond-water paradoxExchange value vs. use valueMarginal analysisThe invisible hand

22. Which of the following was not part of Jefferson's vision for the newly-formed United States?

An economy based primarily on local self-sufficiency and exchangeA loosely-knit Republic deferential to the laws of communities and statesAn economy based primarily in agricultureA mixed economy that would thrive through a policy of targeted import substitution instituted by each particular state

23. Which of the following does not apply to Kenneth Arrow's impossibility theorem?

Arrow demonstrated under very mild conditions that social or group decisions as to what the individual members of a society want cannot be simultaneously satisfied by any social choice procedure that could be described as rational and democratic.Arrow's theorem mathematically demonstrated how government intervention through the use of monetary and fiscal policy was incommensurate with sustainable full employment over the long-term.Arrow's theorem came to the conclusion that the second welfare theorem could not approach practical implementation.Arrow's existence proofs demonstrated that general equilibrium equations had some solution but did not show that there was just one equilibrium (uniqueness); that an economy in disequilibrium would necessarily converge to equilibrium (stability); and that

24. Which of the following factors contributed to the popularity of Karl Marx's work?

Increasing economic disparityThe American Civil WarThe prevalence of tuberculosisThe movement to free India from British colonial rule led by the Indian National Congress

25. Why did Keynes think that the role of uncertainty is so important to an economy?

The role of uncertainty is related to future expectations of returns on capital.Although imprecise, an assessment of the level of uncertainty in an economy is the most telling of all economic indicators.The role of uncertainty is relatively easy to control through the dissemination of information; therefore, it is an important instrument for short-run purposes.The role of uncertainty is the cause of all economic downturns.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com