Exam 6: The Economics of Collective Decision-Making

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

A special-interest issue is one that

Assume that you are a member of the U.S.House of Representatives from your home state and district.Which of the following best explains why you have a strong incentive to get the federal government to finance pork-barrel projects in your district?

In 2006,the American Association of Retired Persons (AARP)spent over $70 million on lobbying-related expenses in an attempt to get policies enacted that would benefit retirees.In economics,the term used to describe such activity is

Public choice analysis indicates that

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?

Suppose domestic automobiles were allocated in the United States the way public education is allocated.Describe how this system might work.

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

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

In a representative democracy,government action results from the

Government action will often result in the counterproductive use of resources because

Which of the following explains why pork-barrel spending is often approved,even when the spending is inefficient?

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

Government decisions tend to be biased against actions that have

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?

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

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?

Public choice analysis

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

Public choice theory indicates competitive forces provide a politician with a strong incentive to offer voters a bundle of political goods that she believes