Exam 6: The Economics of Political Action

Economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations would be

Government decisions tend to be biased toward actions that have

Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted even when economic inefficiency results. This can be expected because of

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. When the structure of production and consumption for a good places it in quadrant B,

When voters pay in proportion to the benefits received from an economic action of the government, if the government activity is productive,

Giving local governments more power is less dangerous than giving the same power to the national government because

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

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

As methods of economic organization, the market and the public sector are similar in which of the following ways?

Which of the following is true?

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

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

Which one of the following economists has played a central role in the development of the "economics of collective decision making," better known as public choice analysis?

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

The theory of public choice

In which of the following situations is representative democracy most likely to lead to the adoption of an inefficient government program?

Government decisions tend to be biased against actions that have

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

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

If new regulations make it illegal to sell older model electrical appliances, then