Exam 5: Governments Role and Government Failure

Fiscal policy refers to the government's attempt at stabilizing the economy through the use of changes in

Unfunded liabilities are one consequence of the preference for "clear benefits, hidden costs" by politicians.

Suppose that Katie and Kelly each expects to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth.If the proposed tax levied on each for the center would be $400, a majority vote will

(Consider This) Smaller groups are sometimes able to achieve political victories against larger groups.This is referred to as the

Economists call the pursuit of a transfer of wealth through government at someone else's expense

A government using fiscal policy in an attempt to stimulate the economy would do which of the following?

As it relates to corporations, the principal-agent problem is that

Suppose that in a series of paired-choice votes, a new park is preferred to a new recreation center and a new recreation center is preferred to street widening.Also suppose that street widening is preferred to a new park.This set of votes is an example of the

In a market economy, private parties are more willing to do transactions when they know that the government is able to

The provision of loan guarantees can improve economic efficiency when

In order to achieve economic efficiency in market economies like the U.S., the government must be stripped of its power to coerce.

The government's ability to coerce people to do things is always detrimental to the achievement of economic efficiency.

Government guarantees that socialize losses and privatize gains tend to encourage risky and imprudent investment.

Which of the following is considered a potential solution to some regulatory capture?

The idea of government failure includes all of the following except

Suppose American winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions.This would be an example of

Even in democratic governments, we tend to have a problem with accountability due to the following reasons, except

The U.S.federal government's largest unfunded liability is

The government of Southland wants to improve resource allocation in the country.Which of the following actions by the Southland government is most likely to accomplish this?

The pursuit through government of a transfer of wealth at society's expense is called "rent seeking."