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

In the median-voter model, half the voters have stronger or more positive preferences than the median voter, while half of the voters have weaker or more negative preferences.

It is observed that the person representing the middle position on an issue will most likely determine the outcome of an election. This view is most closely associated with the

The information contained in the table illustrates

Street entertainers face the free-rider problem when they perform because of the

In the median-voter model, the median voter refers to the voter who makes her choice at the midpoint of the voting period.

What is meant by the term government failure as described in this chapter?

Deregulation

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

Economists (particularly public choice theorists)point out that the political process

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.

Assume there is no way to prevent someone from using an interstate highway, regardless of whether or not he or she helps pay for it. This characteristic is called

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. Based on cost-benefit analysis, New Normal University should undertake Level

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

Rent-seeking behavior in public choice theory refers to

The situation where "the few who yell the loudest get heard" is referred to as the

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

Government loan subsidies for mohair production illustrate

The following data are for a series of increasingly extensive flood-control projects. On the basis of cost-benefit analysis, government should undertake

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 this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be

The free-rider problem makes a good highly profitable for a private firm to provide.