Exam 6: The Economics of Political Action

Dairy farmers hold an annual Capitol Hill ice cream social that provides free ice cream for congressional staffers during which time representatives from the industry discuss issues with, and provide information to, congressional staff. This is an example of

Scenario 6-1 The quotation below relates to the following question(s). "The ideal policy, from the viewpoint of the state, is one with identifiable beneficiaries, each of whom is helped appreciably, at the cost of many unidentifiable persons, none of whom is hurt very much." (George Stigler, A Dialogue on the Proper Economic Role of the State ) Refer to Scenario 6-1. This statement is probably

Public choice analysis suggests that the primary motivating factor for politicians will be finding the policies that are most likely to

Which of the following refers to when legislators trade votes on legislation?

Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?

Use the figure below to answer the following question(s). Figure 6-1 Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered

When governments become more heavily involved in taxing one group in order to provide benefits to other groups, which of the following will be encouraged?

When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,

When is representative democracy most likely to lead to the adoption of an inefficient government program?

In 2008, the combined expenditures of federal, state, and local governments in the United States were approximately

Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?

Use the figure below to answer the following question(s). Figure 6-2 Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers and consumers to economize the strongest?

Despite many differences, the market and public sectors are similar in which one of the following respects?

Which of the following is true about the market and public sectors?

According to the special-interest effect, which of the following groups is least likely to have a significant influence on the political process?

Public choice analysis indicates

From the standpoint of society as a whole, rent seeking is

Which of the following is true of government activities under a system of representative democracy?

When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the

In which of the following situations is the political process likely to result in the inefficient and wasteful use of resources?