Exam 6: The Economics of Political Action

When the government is heavily involved in projects that provide benefits to some businesses at the expense of others, this will increase the incentive of businesses to

Which of the following is true?

Which of the following is true of government activities under a system of representative democracy?

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 type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?

The rational-ignorance effect is a result of

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

In 2015, the combined expenditures of federal, state, and local governments in the United States were approximately 36 percent of gross domestic product (GDP). Approximately what percentage of GDP were government expenditures in 1930?

Transfer payments are

Based on the experience of the Great Depression and the New Deal, which one of the following strategies would be most likely to stimulate recovery from a serious economic recession?

Public choice analysis

Which of the following is an example of a transfer payment?

In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?

At the most basic level, the distinguishing characteristic of government that makes it different from private firms is its ability to

Which of the following is true of government activities under a system of representative democracy?

Measured as a share of national income, government expenditures on income transfers during the last 70 years have

High marginal tax rates, such as those instituted during the Great Depression, will

The Great Depression was an era marked by

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

Legislation that contains a number of projects benefiting local interests at the expense of the general taxpayer is called

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