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

If a public good provides social benefits that are greater than its costs, then the majority of voters would always vote in favor of producing the good.

Which of the following is an example of a public good?

The special-interest effect is one that yields

Suppose that Mick and Cher are the only two members of society and are willing to pay $10 and $12, respectively, for the fifth unit of a public good. Also, assume that the marginal cost of the fifth unit is $23. We can conclude that

Regulatory capture in government happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

Suppose that Katie and Kelly each expect to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $600, a majority vote will

Even if individual voters have clear preferences, and they stay consistent in their preferences, we could still end up with the paradox of voting.

The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude

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

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

Given economic research on previous subsidies, should states and local governments subsidize corporate relocations?

Which of the following is considered a potential solution to some regulatory capture?

Suppose a college economics department decides to use a single economics text for all sections of principles of economics. Also assume that the three individual members of the textbook selection committee have the following preferences. Assuming all other textbook qualities except analytical level are the same, majority voting will result in the committee

Which of the following statements concerning a public good is false?

The study of public choice theory involves the economic analysis of the following, except

Does majority voting lead to efficient outcomes?

In which of the following cases has political corruption definitely occurred?

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

Describe the two characteristics of public goods.

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