Exam 6: The Economics of Collective Decision-Making

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

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

The rational-ignorance effect is a result of

In 2008, the combined expenditures of federal, state, and local governments in the United States were approximately

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

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

The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes

An analysis of market failure and government failure indicates

The major categories of federal government spending are

Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?

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

Other things constant, if both the benefits and costs of a public-sector activity are widespread among voters, the political process will generally result in the

Dairy farmers hold an annual Capitol Hill ice cream social that provides free ice cream for congressional staffers during which time representatives from the industry discuss issues with, and provide information to, congressional staff. This is an example of

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

Which of the following factors weakens the case for private-sector provision of goods and services as opposed to public-sector provision?

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. In economics this is referred to as the

The methodology of public choice analysis

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

Market allocation and the political process differ in that

Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?