Exam 5: Governments Role and Government Failure

An economic analysis of the relationship between proposed legislation affecting major employers in each state and the voting patterns of senators and representatives in Congress on that legislation would fit within the subcategory of economics called

Nobody gains from pork-barrel politics other than the politicians.

A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting refers to

In the U.S.market economy, the government performs the following prominent roles, except

During a period when output and employment are falling, the government will try to

One major role that the government plays in the market economy of the U.S.is

When congressional representatives vote on an appropriations bill, they must vote yea or nay, taking the bad with the good.This statement best reflects the

Professional sports teams will sometimes seek public subsidies for stadium financing projects that produce large benefits for a relatively small number of fans and impose small costs on a relatively large number of people.Sometimes these efforts to secure public funding are successful even though the decision is not efficient.This is an example of

The estimated value of the U.S.government's unfunded liability to Social Security is

The trading of votes by elected officials to secure favorable outcomes is called

The sometimes inconsistent results coming from a series of paired-choice voting is due to

Monetary policy attempts to change the level of spending by altering interest rates.

Assume that Abby, Ben, and Clara are the only citizens in a community.A proposed public good has a total cost of $1,000.All three citizens will share an equal portion of this cost in taxes.The benefit of the public good is $400 each to Abby, Ben, and Clara.In a majority vote, this proposal will most likely be

When fiscal and monetary policies become highly politicized, these policies tend to

The collective action problem is the reason why there are no lobbyists representing the interest of general taxpayers or consumers in Washington, DC.

The difficulties in managing government in a market economy include the following, except

Logrolling can either increase or diminish economic efficiency.

Because majority voting fails to incorporate the strength of the preferences of individual voters, it

Refer to the table.In a choice between education and public safety,

Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community.A proposed public good has a total cost of $1,000.All five citizens will share an equal portion of this cost in taxes.The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt.Who are likely to vote in favor of this proposal?