Exam 5: Governments Role and Government Failure

All of the following are consequences of a government's having to deal with a "debt crisis," except

In representative democracy, voters are and politicians are _.

Deregulation is seen as a solution to regulatory capture because it eliminates the regulatory agency that can or has been captured.

(Last Word) In 2011, Congress funded a sanctuary for white squirrels, a giant roadside coffee pot, and an antique bicycle museum.These are examples of

Monetary and fiscal policies are tools that the government can use to try to stabilize the economy.

Interest groups result when people

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference.In a paired-choice vote between a park and a jail,

Public choice economists

The government's ability to force people to do things can increase economic efficiency.

One implication of the median-voter model is that at any point in time, most voters will

Government laws and policies need to be uniformly enforced.But this leads to all of the following problems, except

Unintended consequences can result from the government's desire to enforce laws uniformly.

The government's budget deficit refers to the

In the corporate world of business, the principal-agent problem arises between

Economists widely support deregulation of industries that tend toward monopoly or generate substantial negative externalities.

Political logrolling, or vote trading, can turn a potentially inefficient voting outcome into an efficient one.

Which of the following is the best example of rent-seeking behavior?

The so-called pork-barrel politics refers to congressional members

Which statement best describes a special-interest issue?

In the U.S., the Federal government runs a chronic budget deficit, whereas many state and local governments do not, because