History of Economic Thought

An simple 6 multiple choice question.

QUESTION 1

1. Which of the following statements is TRUE?

   	a.	Lean Walras argues that it is mathematically possible to find a set of prices that clear all markets simultaneously
   	b.	According to Menger, the value of a non-economic good increases the more of that good we consume
   	c.	Jevons opposes the use of mathematics in economics
   	d.	Alfred Marshall argues that ceteris paribus means that economies never change in real life (all things stay constant)

1 points

QUESTION 2

1. Which of the following authors argues that under perfect competition the distribution of income is fair?

   	a.	WS Jevons
   	b.	Carl Menger
   	c.	Leon Walras
   	d.	John Bates Clark

1 points

QUESTION 3

1. Which of the following is NOT an element of Böhm-Bawerk’s theory of capital?

   	a.	Individuals do not assess their future wants correctly
   	b.	People would be less likely to prefer future consumption to similar present consumption
   	c.	Individuals believe that their income will go up over time, and hence experience declining marginal utility of income over time
   	d.	The rate of profit depends on a firm’s organic composition of capital

1 points

QUESTION 4

1. Which of the following is NOT a condition of general equilibrium for Walras?

   	a.	The ratio of marginal utilities of any two commodities should be equal to the ratio of their prices
   	b.	The supply of every commodity should be equal to the demand for that commodity
   	c.	The most valuable commodity (usually gold) should be the numeraire
   	d.	Market participants should not be allowed to barter with each other until the correct set of prices has been found

1 points

QUESTION 5

1. Please connect the author and the concept

   –a.b.c.d.e. Jevons –a.b.c.d.e. Böhm-Bawerk –a.b.c.d.e. Walras –a.b.c.d.e. Marshall –a.b.c.d.e. Clark

   a. roundaboutness b. tâtonnement c. partial equilibrium d. degree of utility e. distribution of income

2 points

QUESTION 6

1. Please connect each concept to its description

   –a.b.c.d. Numéraire –a.b.c.d. Tâtonnement –a.b.c.d. Ceteris paribus –a.b.c.d. Rareté

   a. Assumption that, aside from one tendency that we wish to study, all other things stay equal b. Trial and error process of arriving at the market-clearing set of prices c. Marginal utility d. Commodity in terms of which we can express the prices of all other commodities