Question

11. Here are four statements, each of which may be either true or false. Economic logic is impossible without exchange. I Economic logic is impossible without money. II Money cannot come into existence without exchange. III Exchange cannot come into existence without money. IV Choose the correct option from the list below. I, II, and III are true, and IV is false. I, II, and IV are true, and III is false. В II and III are true, and I and IV are false. С II and IV are true, and I and III are false. III is true, and I, II, and IV are false. E

Answer 1

11. (E) III is true, I, II and IV are false.

12. (C) the necessary and sufficient conditions for an economic problem.

13. (B) The Marginal Revolution. This came about in the late 19th century.

14. (A) the Keynesian Revolution. This came about in approximately 1936 with the publication of Keynes' General Theory.

15. (A) Member of the School of Salamanca.

16. (B) They would rather live in eutopia. Eutopia as opposed to Utopia (which usually leads to a repressive system), refers to an attainable "good place" in the real world and hence, would be chosen over dystopia.

17. (A) Mercantilism. As opposed to this, physiocracy refers to the idea that the government should not interfere with the operation of natural economic laws, i.e. labour and commerce should be free from all restraint.  

18. (B) a representative rational economic individual, who allocates his available resources to obtain maximum satisfaction in the present or future. This is what economists refer to as the "Robinson Crusoe Economy" where the actions of just one individual are studied to see what makes him tick, in order to understand an economy with a population of billions.

19. (C) Bernard Mandeville. He was Anglo-Dutch and not French and wasn't identified with the French Enlightenment.