Question 1

Simple majority voting will generate the same result whether taxes are equally divided or unequally divided.

Accepted Answer

A) True 
 B)False

Question 2

-Refer to Situation 31-l. This episode can be seen as an instance of

Accepted Answer

A) rational ignorance. 
B) logrolling. 
C) special interest politics. 
D) a zero sum game. 
A) rational ignorance. 
B) logrolling. 
C) special interest politics. 
D) a zero sum game.

Question 3

A person will become informed on a political issue if

Accepted Answer

A) it is considered an important issue to society at large. 
B) he perceives the benefits of becoming informed as greater than the costs of becoming informed. 
C) it is regularly discussed on television news shows. 
D) it is regularly written about in the daily newspapers. 
E) none of the above 
A) it is considered an important issue to society at large. 
B) he perceives the benefits of becoming informed as greater than the costs of becoming informed. 
C) it is regularly discussed on television news shows. 
D) it is regularly written about in the daily newspapers. 
E) none of the above

Question 4

Constitutional economists

Accepted Answer

A) assert that within a given set of institutions, constraints, laws and rules, outcomes might be the same no matter who is elected to office. 
B) study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. 
C) assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. 
D) b and c 
E) a and b 
A) assert that within a given set of institutions, constraints, laws and rules, outcomes might be the same no matter who is elected to office. 
B) study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. 
C) assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. 
D) b and c 
E) a and b

Question 5

Often, candidates running for political office will speak in general terms instead of specific terms because voters agree more on __________ than __________.

Accepted Answer

A) benefits; costs 
B) costs; benefits 
C) means; ends 
D) ends; means 
E) none of the above 
A) benefits; costs 
B) costs; benefits 
C) means; ends 
D) ends; means 
E) none of the above

Question 6

The median voter model predicts that

Accepted Answer

A) both candidates in a two-person race will definitely move toward the middle of the political spectrum as the election approaches. 
B) the candidate (in a two-person race) closer to the middle of the political spectrum (closer to the median voter) on election day will win the election. 
C) conservatives have a higher probability of winning elections than liberals. 
D) liberals have a higher probability of winning elections than conservatives. 
E) voters will often be rationally ignorant of important political issues. 
A) both candidates in a two-person race will definitely move toward the middle of the political spectrum as the election approaches. 
B) the candidate (in a two-person race) closer to the middle of the political spectrum (closer to the median voter) on election day will win the election. 
C) conservatives have a higher probability of winning elections than liberals. 
D) liberals have a higher probability of winning elections than conservatives. 
E) voters will often be rationally ignorant of important political issues.

Question 7

Suppose Congress passes a law that states that the federal government will pay $100 to any American citizen who can pass a (reasonably simple) current political events test. It follows that

Accepted Answer

A) this raises the benefits of being rationally ignorant. 
B) this raises the benefits of becoming informed and therefore will lower the degree of rational ignorance in society. 
C) this raises the costs of being rationally ignorant. 
D) b and c 
E) none of the above 
A) this raises the benefits of being rationally ignorant. 
B) this raises the benefits of becoming informed and therefore will lower the degree of rational ignorance in society. 
C) this raises the costs of being rationally ignorant. 
D) b and c 
E) none of the above

Question 8

Ceteris paribus, economics predicts that voter turnout will be higher

Accepted Answer

A) the smaller the number of eligible voters. 
B) the larger the number of eligible voters. 
C) the easier it is to get to the polls on election day. 
D) a and c 
E) b and c 
A) the smaller the number of eligible voters. 
B) the larger the number of eligible voters. 
C) the easier it is to get to the polls on election day. 
D) a and c 
E) b and c

Question 9

Exhibit 31-1
  
-Refer to Exhibit 31-1. The exhibit shows the breakdown of benefits and costs for a four-person town considering the purchase of an additional $1,200 worth of books for the public library. If simple majority voting determines the outcome, the books will

Accepted Answer

A) be purchased because more persons are for it than against it. 
B) be purchased because the total benefits are greater than the total costs. 
C) not be purchased even though total benefits exceed total costs. 
D) not be purchased because the total costs are greater than the total benefits. 
A) be purchased because more persons are for it than against it. 
B) be purchased because the total benefits are greater than the total costs. 
C) not be purchased even though total benefits exceed total costs. 
D) not be purchased because the total costs are greater than the total benefits.

Question 10

Exhibit 31-4
​
  
-Refer to Exhibit 31-4. At the market equilibrium price of the good, consumers' surplus is the area

Accepted Answer

A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above 
A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above

Question 11

People will be more likely to vote if they believe that their vote will determine the outcome of the election.

Accepted Answer

A) True 
 B)False

Question 12

Simple majority rule can generate inefficient outcomes because

Accepted Answer

A) it does not register the intensity of voters' preferences. 
B) it cannot adjust for special interest lobbying efforts. 
C) it does not adjust for the costs of rational ignorance. 
D) people are often misinformed on what it is they are voting on. 
E) none of the above 
A) it does not register the intensity of voters' preferences. 
B) it cannot adjust for special interest lobbying efforts. 
C) it does not adjust for the costs of rational ignorance. 
D) people are often misinformed on what it is they are voting on. 
E) none of the above

Question 13

Most voters choose not to be informed about political and governmental issues because they are not smart enough to really understand the issues.

Accepted Answer

A) True 
 B)False

Question 14

Exhibit 31-4
​
  
-Refer to Exhibit 31-4. If producers of this good engage in rent seeking which results in the government imposing a price floor of P2, then consumers' surplus ends up being area

Accepted Answer

A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A 
A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A

Question 15

Rent seeking is more likely to occur in a family when the parents make their inheritance plans clear by telling the children ahead of time that their estate will be divided equally among the children (and that under no circumstances will the parents change their minds) than when there is more uncertainty with regards to the parents' inheritance plans.

Accepted Answer

A) True 
 B)False

Question 16

Political candidates running for the same office tend to voice

Accepted Answer

A) the same views on how things should be accomplished so that one candidate does not gain an advantage over the other. 
B) the same views on how things should be accomplished, simply because there usually is no difference between their views. 
C) quite different views on how things should be accomplished so that voters will see that one approach is better than another. 
D) the same views on what things should be accomplished, but not speak specifically on how things should be accomplished. 
A) the same views on how things should be accomplished so that one candidate does not gain an advantage over the other. 
B) the same views on how things should be accomplished, simply because there usually is no difference between their views. 
C) quite different views on how things should be accomplished so that voters will see that one approach is better than another. 
D) the same views on what things should be accomplished, but not speak specifically on how things should be accomplished.

Question 17

Public choice deals exclusively with business decisions.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is false?

Accepted Answer

A) In some instances, simple majority voting leads to a project being undertaken even though the total costs of the project exceed the total benefits. 
B) Simple majority voting fails to take into account the intensity of individuals' preferences. 
C) Public choice economists often explain low voter turnouts in terms of the individual costs and benefits of voting. 
D) If an individual will only vote if he or she feels that his or her vote will make a difference in the election, it is likely that he or she will vote. 
A) In some instances, simple majority voting leads to a project being undertaken even though the total costs of the project exceed the total benefits. 
B) Simple majority voting fails to take into account the intensity of individuals' preferences. 
C) Public choice economists often explain low voter turnouts in terms of the individual costs and benefits of voting. 
D) If an individual will only vote if he or she feels that his or her vote will make a difference in the election, it is likely that he or she will vote.

Question 19

Logrolling consists of

Accepted Answer

A) exchanging votes to gain support for legislation. 
B) spreading the costs of a piece of special interest legislation over many millions of people. 
C) attempts directed at slowing down the growth of rational ignorance. 
D) increasing taxes on some people and lowering taxes on other people. 
E) none of the above 
A) exchanging votes to gain support for legislation. 
B) spreading the costs of a piece of special interest legislation over many millions of people. 
C) attempts directed at slowing down the growth of rational ignorance. 
D) increasing taxes on some people and lowering taxes on other people. 
E) none of the above

Question 20

Exhibit 31-4
​
  
-Refer to Exhibit 31-4. Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P2. The loss of consumers' surplus that occurs due to the price floor is

Accepted Answer

A) B + C 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A 
A) B + C 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A

Exam 31: Public Choice and Special Interest Group Politics

Simple majority voting will generate the same result whether taxes are equally divided or unequally divided.

-Refer to Situation 31-l. This episode can be seen as an instance of

A person will become informed on a political issue if

Constitutional economists

Often, candidates running for political office will speak in general terms instead of specific terms because voters agree more on __________ than __________.

The median voter model predicts that

Suppose Congress passes a law that states that the federal government will pay $100 to any American citizen who can pass a (reasonably simple) current political events test. It follows that

Ceteris paribus, economics predicts that voter turnout will be higher

Exhibit 31-1 -Refer to Exhibit 31-1. The exhibit shows the breakdown of benefits and costs for a four-person town considering the purchase of an additional $1,200 worth of books for the public library. If simple majority voting determines the outcome, the books will

Exhibit 31-4 ​ -Refer to Exhibit 31-4. At the market equilibrium price of the good, consumers' surplus is the area

People will be more likely to vote if they believe that their vote will determine the outcome of the election.

Simple majority rule can generate inefficient outcomes because

Most voters choose not to be informed about political and governmental issues because they are not smart enough to really understand the issues.

Exhibit 31-4 ​ -Refer to Exhibit 31-4. If producers of this good engage in rent seeking which results in the government imposing a price floor of P2, then consumers' surplus ends up being area

Political candidates running for the same office tend to voice

Public choice deals exclusively with business decisions.

Which of the following statements is false?

Logrolling consists of

Exhibit 31-4 ​ -Refer to Exhibit 31-4. Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P2. The loss of consumers' surplus that occurs due to the price floor is

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Often, candidates running for political office will speak in general terms instead of specific terms because voters agree more on than .

Exhibit 31-4 -Refer to Exhibit 31-4. At the market equilibrium price of the good, consumers' surplus is the area

Exhibit 31-4 -Refer to Exhibit 31-4. If producers of this good engage in rent seeking which results in the government imposing a price floor of P₂, then consumers' surplus ends up being area

Exhibit 31-4 -Refer to Exhibit 31-4. Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P₂. The loss of consumers' surplus that occurs due to the price floor is