Exam 5: Public Goods, Public Choice, and Government Failure

If choice A wins over choice B in a majority vote, while choice B wins over choice C in a majority vote, then we can conclude that choice A would win over choice C.

The median-voter model implies that

Inefficiencies associated with majority voting may get resolved through

The pursuit through government of special benefits at society's expense is called "rent seeking."

Economists call the pursuit of extra profit or income by influencing government policies,

Assume that Matt, Joe, and Teresa 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 $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be

As voters "vote with their feet" and move to political districts where the median voter's preference is closer to their own, the median voter's preference will

Lobbying actions that seek government legislation to provide tax breaks to specific organizations or industries would be an example of

Public goods are those for which there

Explain the principal-agent problem for a representative democracy.

(Consider This) Why do street performers face a free-rider problem? How do they try to reduce this problem?

Toll-free roads sometimes get congested, such as during rush-hour traffic. During those times, we would say that these roads are

Special-interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences and could thereby lead to efficient outcomes.

Define earmarks.

Refer to the table. The outcomes of the three possible sets of paired-choice majority votes illustrate the

A government is considering undertaking a construction project of an increasing scale (ranging from 1, 2, 3, to 4). The estimated marginal costs and marginal bene?ts of each successive scale of the project are given in the Table below. Project Marginal Cost (in millions) Marginal Benefit (in millions) 1 \ 8 \ 11 2 11 13 3 18 17 4 28 23 What is the net bene?t of project scale 2?

Majority voting assures that government will provide a public good if it yields total benefits in excess of total costs.

(Last Word) Should government subsidize corporate relocations?

The median-voter model indicates that political parties will

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