Exam 6: The Economics of Political Action

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 statements is false?

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 types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

Economics indicates that government funding of special interest projects and favoritism of some business firms relative to others will lead to

Which of the following factors weakens the case for government provision of goods and services relative to private-sector provision?

How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?

John Smith is a typical citizen. Economic theory suggests that he is likely to make a more informed choice when he buys a personal computer than when he votes for a congressional candidate. This view is

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

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 6-1 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?

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

Which of the following is a category of activity that results in government failure?

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

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

Senator Dogood is pushing for the construction of a new military base in his state even though, from the standpoint of national security, it is clear that there are better places to locate the new military base. Economic theory would suggest that Senator Dogood is

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

Combined federal, state, and local government expenditures in the United States were approximately 9 percent of the gross domestic product (GDP) in 1930. How large were government expenditures as a share of GDP in 2015?

In 2015, government income transfers redistributed what percentage of national income?

Under democratic representative government, spending on a government program will likely be larger than the amount consistent with economic efficiency when

Public choice analysis indicates