Economics Quiz

By Dr. Walter Williams.

Here are some excerpts:

“A substantial number of relatively unskilled persons reported that they cannot find work. At the same time, there are many unfilled jobs for relatively skilled people. Apparently, the problem is that there are more unskilled people than unskilled jobs.” What is wrong with the reasoning?

“Debtors are exploited by creditors because a person who has to borrow is usually in distress and is willing to pay a very high price to get the loan. Unless laws were passed controlling the rate of interest, debtors would be forced to pay unreasonable rates of interest.” Is the analysis correct? Explain why or why not.

Do the following comments reflect sound economic reasoning? Explain why or why not. (a) “I paid $200.00 for this economics course. Therefore, I am going to attend the lectures even if they are useless and boring.” (b) “Since we own rather than rent, housing does not cost us anything.” (c) I own 100 shares of stock that I can’t afford to sell until the price goes up enough for me to get back at least my original investment.” (d) “It costs to produce private education, whereas public schooling is free.”

The average wage rate of women is only 59% of that of men. This shows that women are paid just 59% as much as men for doing the same work. Evaluate this statement.

What is the problem with common property resources?

Is human life priceless? What evidence can you offer to support your contention?

Evaluate: “A bird in the hand is worth six in the bush.”

Etc.

Do you need help?