Exam 6: The Economics of Political Action

Which one of the following economists has played a central role in the development of the "economics of collective decision making," better known as public choice analysis?

If new regulations make it illegal to sell older model electrical appliances, then

Use the figure below to answer the following question(s). Figure 6-1 -Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted, even when economic inefficiency results. In economics this is referred to as the

When analyzing public sector decision making, economic theory assumes voters, politicians, and government officials will

A special-interest issue is one that

Crony capitalism is present when

Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?

Madison is a third-grade public school teacher who doesn't own a car and uses public transportation. According to public choice theory, which of the following four politicians for a public office would Madison be most likely to vote for in the upcoming election?

As methods of economic organization, the market and the public sector are similar in which of the following ways?

As more politically directed spending leads to more rent-seeking activity,

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?

In 2012, the combined expenditures of federal, state, and local governments in the United States were approximately

John Smith is a typical citizen. Economic theory suggests that he is likely to make a more informed choice when he buys a personal computer than when he votes for a congressional candidate. This view is

Pork-barrel legislation typically bundles the pet projects of several special interest groups. Such legislation

In 2012, the combined expenditures of federal, state, and local governments in the United States were approximately 38 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?

Government decisions tend to be biased against actions that have

Public choice analysis indicates

Is calling a voter rationally ignorant the same as calling her irrational? Explain.