Exam 6: The Economics of Political Action

Which of the following increases the political power of special interest groups and makes counterproductive government action more likely?

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

Direct income transfers account for approximately what percentage of total government spending?

Analysis of the Great Depression indicates that

Suppose we coupled the pay of Congress with the federal budget, so that for every billion dollars of deficit spending, a lawmaker's pay would be reduced $1,000. How would this affect fiscal policy?

In economics, actions by individuals and interest groups designed to influence public policy in a manner that will either directly or indirectly redistribute more income to themselves are known as

Logrolling refers to

Which of the following was most responsible for bringing the Great Depression to an end?

Special-interest legislation is characterized by

In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?

Which of the following contributed to the severity of the Great Depression?

Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?

When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the

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. This can be expected because of

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

Public choice theory indicates competitive forces provide a politician with a strong incentive to offer voters a bundle of political goods that she believes

Use the figure below to answer the following question(s). Figure 6-2 -Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,

Which of the following resulted from the Smoot-Hawley trade bill of 1930?

Government decisions tend to be biased against actions that have

For activities in which the benefits are concentrated and the costs widespread, governments are likely to undertake