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

Answer the question on the basis of this table showing the marginal benefit a particular public project will provide to each of the three members of a community. No vote trading is allowed. If the tax cost of this proposed project is $600 per person, a majority vote will

The idea of government failure includes all of the following except

The median-voter model indicates that political parties will

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 will likely vote in favor of this proposal?

Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Suppose government has already produced 4 units of this public good. The amount individual B is willing voluntarily to pay for the fourth unit is

The median-voter model implies that

The special-interest effect in government decision making is significant because

Logrolling can either increase or diminish economic efficiency.

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

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 stadium and a park,

For which one of the following goods would we need to sum individual demand curves vertically to obtain the total demand curve?

Because of the so-called "bundled choice" problem, voters often vote for candidates that they are not entirely happy with.

New Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected total annual costs and benefits of these alternatives. The marginal benefit of crime control for Level Two is

Which of the following would best explain why regulatory capture is a problem?

Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be

Because of the free-rider problem,

Answer the question based on the following information for a public good. Pₐ and Pᵦ are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. The collective willingness of this society to pay for the second unit of this public good is

The field of economics that analyzes government decision making, politics, and elections is called

"Regulatory capture" refers to the situation where a government agency charged with supervising and regulating a particular industry is

Suppose three roommates cannot agree on the size of a pizza to order. Domino argues for a medium pizza, Godfather contends a large pizza will be needed, and Little Caesar wants a super-large pizza. Assuming no paradox of voting, majority voting will result in a decision to order