Exam 31: Public Choice and Special Interest Group Politics

The voting outcome and the most preferred outcome of the median voter are the same in a simple majority vote where there are several options from which to choose.

Which of the following persons is most likely to become informed on the National Endowment for the Arts?

Public choice refers to

It has been suggested by some economists that rent seeking activity often occurs within families, particularly when an inheritance is involved.

In his article Straight Talk About Economic Literacy, economist _______________________ said, "Citizens can vote even if they have no idea what they are doing. If enough voters fit that description, democratic governments are bound to make foolish decisions."

Rational ignorance is

Two candidates, Smith and Jones, are running for the same political office. Last night they were in a debate. It is generally accepted that Smith is perceived more to the left after the debate than before the debate. This is bad news for Jones if before the debate Smith was perceived

During an election, a candidate who is not doing as well in the polls as his or her opponent will

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 gain in producers' surplus that occurs due to the price floor is

Simple majority voting sometimes leads to projects being undertaken whose costs are greater than the benefits. How is this possible?

Candidates in a two-person race express very similar positions a few weeks before the election. A voter complains that there is not much difference between the two candidates. What this voter misunderstands or ignores is that

Which of the following is a prediction of the median voter model for a two person political race?

People may vote in a presidential election if

Logrolling is the exchange of votes to gain support for legislation.

Logrolling

Public choice theory is the branch of economics that deals with group economic decisions made through social media.

The process whereby votes are exchanged to gain support for legislation is referred to as

Which of the following is false?

According to public choice theorists, people behave differently in the market sector than in the public sector because

Exhibit 31-2 ​ -Refer to Exhibit 31-2-(a). Two candidates are competing for an electorate consisting of 9 voters labeled A-I shown positioned with respect to their ideological stands on issues. The median voter theory would predict that candidates will assume the ideological position(s)