Exam 6: The Economics of Collective Decision-Making

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

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?

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

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

According to the shortsightedness effect,politicians tend to favor projects with

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

In 2010,government income transfers redistributed what percentage of national income?

Which of the following is an example of political action that reflects the shortsightedness effect?

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

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?

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) -Which of the following groups does the quotation in Scenario 6-1 suggest would have the most influence on public sector action?

Which of the following is true?

Which of the following statements is False?

In 2010,the combined expenditures of federal,state,and local governments in the United States were approximately 40 percent of gross domestic product (GDP).Approximately what percentage of GDP were government expenditures in 1930?

Restrictions that limit sugar imports,subsidies for the construction of sports stadiums,and federal spending on programs like the construction of an indoor rain forest in Iowa all provide examples of government programs

According to economic theory,it is often rational for a politician to support special interest groups at the expense of unorganized,widely dispersed groups (for example,taxpayers or consumers)

Joella is a third-grade public school teacher who doesn't own a car and uses public transportation.According to public choice theory,which of the following four politicians for a public office would Joella be most likely to vote for in the upcoming election?

Which of the following is legally permitted to use coercive force to modify the actions of adults against their will?

The rational-ignorance effect refers to the