Exam 5: Governments Role and Government Failure

Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be

Political corruption occurs in the following instances, except when

"Earmarks" refer to

All of the following are consequences of a government's having to deal with a "debt crisis," except

(Consider This) From an economist's perspective, when is government too big?

Government officials tend to make

Which of the following is an activity of government that is not an activity of private firms?

(Last Word) From 2006-2010, the federal government paid $600 million in retirement benefits to deceased federal employees, with the checks being illegally cashed by relatives. This example illustrates

One implication of the median-voter model is that at any point in time, most voters will

How does government's power to coerce behavior tend to reduce private-sector risk?

Because of the force of law and bureaucratic structure, government accountability is less of a problem than in the private sector.

The median-voter model implies that a political office seeker will

The politicization of monetary and fiscal policies tends to enhance their effectiveness in stabilizing the economy.

Many state and local governments in the U.S. have balanced-budget laws in order to prevent politicians from

In order to achieve economic efficiency in market economies like the U.S., the government must be stripped of its power to coerce.

The problem of limited and bundled choices explains why many voters cannot fully express their political preferences.

When fiscal and monetary policies become highly politicized, these policies tend to

Which of the following countries had the least corruption, as reported in the Global Corruption Barometer survey in 2013?

Deregulation can solve the problem of regulatory capture and increase economic efficiency

Unfunded liabilities are one consequence of the preference for "clear benefits, hidden costs" by politicians.