Exam 6: The Economics of Political Action

Legislators often gain by bundling a number of projects benefiting local districts at the expense of general taxpayers together on a single bill. Such legislation is called

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. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?

Which of the following is an example of a good that is produced by the public sector but consumers purchase it in proportion to the benefit received?

An analysis of market failure and government failure indicates

Which of the following is a distinguishing characteristic of a user charge?

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. A tariff on imported steel to protect jobs in the domestic steel industry that raises the cost of many products for consumers would be considered which type of project?

Which of the following is accurate regarding government expenditures in the United States?

In which case is the political process most likely to result in the acceptance of productive programs and rejection of unproductive political activities?

Which of the following is most likely to result in an increase in crony capitalism?

Payments that users (consumers) are required to make if they want to receive certain services provided by the government are called

Special-interest legislation is characterized by

A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?

The major categories of federal government spending are

In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?

Government decisions tend to be biased toward actions that have

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. For which type would the government most likely undertake many projects that would be considered inefficient or counterproductive (in other words, do too many of them relative to economic efficiency)?

When analyzing public sector decision making, economic theory assumes that voters, politicians, and government officials will

The branch of economics that attempts to understand the outcomes observed in the public sector by examining the incentives faced by the individual actors involved (such as voters, politicians, and bureaucrats) is known as

Which of the following is an example of a transfer payment?

Economic analysis suggests that bureaucrats and public-sector managers have a strong incentive to