Question 1

The trading of votes to secure favorable outcomes on decisions that would otherwise be defeated is called

Accepted Answer

A)  median-voter trading.
B)  the special-interest effect.
C)  political logrolling.
D)  the paradox of voting.E) All of the above
F) A) and B)

Question 2

The "pork" in pork-barrel politics refers to government projects that politicians try to secure in favor of the common good for the whole nation.

Accepted Answer

A) True 
 B)False

Question 3

Special-interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences and could thereby lead to efficient outcomes.

Accepted Answer

A) True 
 B)False

Question 4

Regulatory capture occurs when government exerts excessive control over an industry.

Accepted Answer

A) True 
 B)False

Question 5

"Voter failure" is one cause of government failure.

Accepted Answer

A) True 
 B)False

Question 6

As long as government officials have to be elected, they are always held accountable for their policy decisions and choices.

Accepted Answer

A) True 
 B)False

Question 7

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference.In a paired-choice vote between a stadium and a park,

Accepted Answer

A)  a majority of the voters would favor the park, 2-to-1.
B)  a majority of the voters would favor the stadium, 2-to-1.
C)  a majority of the voters would favor the park, 3-to-0.
D)  a majority of the voters would favor the stadium, 3-to-0.E) None of the above
F) C) and D)

Question 8

The principle that under some circumstances majority voting fails to make consistent choices reflecting the community's underlying preference is best demonstrated by the

Accepted Answer

A)  paradox of voting.
B)  concept of logrolling.
C)  median-voter model.
D)  Coase theorem.E) C) and D)
F) A) and C)

Question 9

The special-interest effect in government decision making is significant because

Accepted Answer

A)  it corrects instances of spillover costs and benefits.
B)  it can lead to programs with concentrated benefits and diffuse costs.
C)  capitalistic economies are based upon the pursuit of self-interest.
D)  it allows us to avoid the collective-action problem.E) A) and D)
F) None of the above

Question 10

Making blackmail, extortion, and other forms of private coercion illegal is one way that government

Accepted Answer

A)  reduces private-sector economic risk.
B)  increases private-sector economic risk.
C)  reduces the market's economic efficiency.
D)  increases the economy's deadweight losses.E) B) and C)
F) All of the above

Question 11

The problem of limited and bundled choices explains why many voters cannot fully express their political preferences.

Accepted Answer

A) True 
 B)False

Question 12

Deregulation can solve the problem of regulatory capture and increase economic efficiency

Accepted Answer

A)  if the deregulated industry quickly evolves into a monopoly.
B)  if the deregulated industry becomes more competitive.
C)  when the regulations covering the industry are tightened.
D)  when the industry ends up generating substantial external costs.E) A) and B)
F) All of the above

Question 13

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference.In a paired-choice vote between a jail and a stadium,

Accepted Answer

A)  a majority of the voters would favor the jail, 2 to 1.
B)  a majority of the voters would favor the stadium, 2 to 1.
C)  a majority of the voters would favor the jail, 3 to 0.
D)  a majority of the voters would favor the stadium, 3 to 0.E) B) and C)
F) None of the above

Question 14

Deregulation of an industry will always lead to an improvement in economic efficiency.

Accepted Answer

A) True 
 B)False

Question 15

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project.This is an example of

Accepted Answer

A)  logrolling.
B)  the paradox of voting.
C)  the principal-agent problem.
D)  the median voter model.E) C) and D)
F) B) and D)

Question 16

"Good economics" is about marginal costs and marginal benefits of specific projects; "good politics" is more about clear benefits and hidden costs.

Accepted Answer

A) True 
 B)False

Question 17

Even if individual voters have clear preferences, and they stay consistent in their preferences, we could still end up with the paradox of voting.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would be the best example of regulatory capture?

Accepted Answer

A)  Starbucks buys up all the available supplies of coffee beans.
B)  Nike executives influence the rules for track and field events.
C)  Federal law makers write and pass legislation that protects domestic companies from foreign competition.
D)  Executives from the Ford, General Motors, and Chrysler companies write the rules regulating automobile safety and fuel requirements.E) C) and D)
F) B) and C)

Question 19

The Securities and Exchange Commission's supervision of Wall Street financial firms is a possible example of regulatory capture.

Accepted Answer

A) True 
 B)False

Question 20

One consequence of the paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote.

Accepted Answer

A) True 
 B)False

Exam 5: Governments Role and Government Failure

One consequence of the paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote.

Correct AnswerverifiedShow Answer

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference.In a paired-choice vote between a stadium and a park,

Correct AnswerverifiedShow Answer

Which of the following would be the best example of regulatory capture?

Correct AnswerverifiedShow Answer

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project.This is an example of

Correct AnswerverifiedShow Answer

The "pork" in pork-barrel politics refers to government projects that politicians try to secure in favor of the common good for the whole nation.

Correct AnswerverifiedShow Answer

Special-interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences and could thereby lead to efficient outcomes.

Correct AnswerverifiedShow Answer

The special-interest effect in government decision making is significant because

Correct AnswerverifiedShow Answer

The trading of votes to secure favorable outcomes on decisions that would otherwise be defeated is called

Correct AnswerverifiedShow Answer

"Voter failure" is one cause of government failure.

Correct AnswerverifiedShow Answer

The problem of limited and bundled choices explains why many voters cannot fully express their political preferences.

Correct AnswerverifiedShow Answer

Deregulation of an industry will always lead to an improvement in economic efficiency.

Correct AnswerverifiedShow Answer

"Good economics" is about marginal costs and marginal benefits of specific projects; "good politics" is more about clear benefits and hidden costs.

Correct AnswerverifiedShow Answer

Regulatory capture occurs when government exerts excessive control over an industry.

Correct AnswerverifiedShow Answer

Making blackmail, extortion, and other forms of private coercion illegal is one way that government

Correct AnswerverifiedShow Answer

The Securities and Exchange Commission's supervision of Wall Street financial firms is a possible example of regulatory capture.

Correct AnswerverifiedShow Answer

Even if individual voters have clear preferences, and they stay consistent in their preferences, we could still end up with the paradox of voting.

Correct AnswerverifiedShow Answer

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference.In a paired-choice vote between a jail and a stadium,

Correct AnswerverifiedShow Answer

As long as government officials have to be elected, they are always held accountable for their policy decisions and choices.

Correct AnswerverifiedShow Answer

The principle that under some circumstances majority voting fails to make consistent choices reflecting the community's underlying preference is best demonstrated by the

Correct AnswerverifiedShow Answer

Deregulation can solve the problem of regulatory capture and increase economic efficiency

Correct AnswerverifiedShow Answer

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