Exam 6: The Economics of Political Action

Public choice theory indicates that the behavior of people in government

In economics, actions by individuals and interest groups designed to influence public policy in a manner that will either directly or indirectly redistribute more income to themselves are known as

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

When the government is heavily involved in projects that provide benefits to some businesses at the expense of others, this will increase the incentive of businesses to

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

When subsidies, tax credits, and government favoritism are increasingly used to allocate goods and services,

Legislation that contains a number of projects benefiting local interests at the expense of the general taxpayer is called

Young John recently took a job with the U.S. Department of Agriculture. His supervisor gave him an assignment and a two-week deadline. He finished the job in three days and turned it in. Now his coworkers are mad at John. Why?

Most income transfer programs in the United States

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

A local government operates a city recreation center with a pool and tennis courts. The center is financed through $50 annual membership fees (required for members to use it). This type of financing is an example of a

When the federal government becomes heavily involved in programs that favor well-organized business interest at the expense of others, the expected result is

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

When decisions are made by majority rule, elected officials have a strong incentive to

Public choice analysis

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?

Measured as a share of national income, government expenditures on income transfers during the last 70 years have

Public choice theory assumes each voter will tend to support the political candidate who offers

At the most basic level, the distinguishing characteristic of government that makes it different from private firms is

Market allocation and the political process differ in that