Exam 5: B: Governments Role and Government Failure

Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community.No vote trading is allowed. If the tax cost of this proposed project is $300 per person, a majority vote will:

Refer to the table.The outcomes of the three possible sets of paired-choice majority votes illustrate the:

Vote for my special local project and I will vote for yours.This political technique:

Information problems create inefficient outcomes in:

Suppose a college economics department decides to use a single economics text for all sections of principles of economics.Also assume that the three individual members of the textbook selection committee have the following preferences. Assuming all other textbook qualities except analytical level are the same, paired-choice majority voting will result in the committee:

The political technique called logrolling:

In what way, if any, does the invisible hand affect government resource allocation?

Which one of the following topics would be of the most interest to a public choice economist?

Even if a majority of the population wants a law and the law is passed, the outcome may still be economically inefficient.

The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state.From this we can definitively conclude:

Suppose Canadian winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions.This would be an example of:

Refer to the table.In a choice between the highway and the lighthouse:

Suppose lawyers seek legislation to limit the use of computer software that enables people to use their personal computers to self-prepare their own wills, trusts, and other legal documents.This is an example of:

The government of Southland wants to improve resource allocation in the country.Which of the following actions by the Southland government is most likely to accomplish this?

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

Government's ability to enforce laws and contracts increases private-sector economic risks.

Which of the following will tend to socialize losses and privatize gains?

In representative democracy, voters are ____________ and politicians are ______________.

Under what circumstances would government loan guarantees be socially beneficial?

The government's ability to coerce, ensures that what does not occur: