Exam 16: Public Goods and Public Choice

Special-interest groups have little incentive to

When the government increases taxes to provide traditional public goods, such as national security, there tends to be

A good that is rival but nonexclusive is called

An example of traditional public-goods legislation is

Generally, people are more satisfied with private market outcomes than with public voting outcomes because

A good that is nonrival but exclusive is called

In Niskanen's theory, bureaucrats obtain the budget they want by

If managers of a private corporation perform poorly, each owner has the option of

Direct transfer programs are generally less efficient and less politically acceptable than subsidy programs.

Exhibit 16-2 Refer to Exhibit 16-2.How much of a surplus of wool does the $6 price support generate?

Exhibit 16-5 Exhibit 16-5 represents the market for leaf tobacco.In the absence of any government intervention how much will buyers spend on tobacco?

U.S.farm subsidies are a sticking point in negotiating freer international trade agreements.

Because of the free-rider problem, it is necessary that public bureaus manufacture defense weapons.

Attempts by special-interest groups to gain favorable treatment from government are called

One goal of political action committees is to

Special-interest legislation that imposes costs broadly over many taxpayers can be enacted because

According to William Niskanen, bureaucrats seek to

The proposed takeover of Tony's Airlines by Plummet Airlines will result in increased profits for Plummet and increased air fares for consumers.This is an example of

Exhibit 16-1 Consider Exhibit 16-1.Considering government expenditures on surplus milk but ignoring storage costs, how much do consumers pay per gallon for the quantity purchased at the support price?

Rational ignorance occurs when