Exam 6: The Economics of Political Action

Payments that users (consumers) are required to make if they want to receive certain services provided by the government are called

Which of the following did not contribute to the severity of the Great Depression?

The branch of economics that attempts to understand the outcomes observed in the public sector by examining the incentives faced by the individual actors involved (such as voters, politicians, and bureaucrats) is known as

Elizabeth is the owner of a small business, and she is 35 years old. She doesn't smoke cigarettes, and she often spends her weekends with her family camping at the local state park. According to public choice theory, which of the following four politicians for a public office would Elizabeth be most likely to vote for in the upcoming election?

Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?

How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?

Economic analysis indicates that the monetary policy of the 1930s, which shifted back and forth between restrictive monetary policy and expansionary monetary policy, would likely result in

As government becomes more involved in providing favors to some businesses and sectors of the economy at the expense of others

If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect

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. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered

According to economic theory, it is often rational for a politician to support special interest groups at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers)

During a recession, the political incentive structure will encourage politicians to

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. A tariff on imported steel to protect jobs in the domestic steel industry that raises the cost of many products for consumers would be considered which type of project?

Which of the following explains why pork-barrel spending is often approved, even when the spending is inefficient?

Which of the following represents why private production tends to be more efficient then government production?

Economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations would be

Which of the following is true?

Public choice theory indicates that the behavior of people in government

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

An analysis of market failure and government failure indicates