Exam 5: Governments Role and Government Failure

(Last Word) In 2011, Congress funded a sanctuary for white squirrels, a giant roadside coffee pot, and an antique bicycle museum. These are examples of

Majority voting assures that government will provide a public good if it yields total benefits in excess of total costs.

Because of the so-called "bundled choice" problem, voters often vote for candidates that they are not entirely happy with.

Answer the question on the basis of this table showing the marginal benefit a particular public project will provide to each of the three members of a community. No vote trading is allowed. If the tax cost of this proposed project is $600 per person, a majority vote will

The so-called collective-action problem refers to the fact that

Even in a democratic government, elected officials may end up pursuing policies that go against the preferences of the people due to the following reasons, except

It is observed that the person representing the middle position on an issue will most likely determine the outcome of an election. This view is most closely associated with the

Information problems create inefficient outcomes in

Government loan guarantees tend to have the effect of

The estimated value of the U.S. government's unfunded liability to Social Security is

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project. This is an example of

The trading of votes by elected officials to secure favorable outcomes is called

One implication of the median-voter model, as applied to a vote regarding how much government involvement to have in the economy, is that most voters would find the resulting government involvement either too large or too small.

(Consider This) According to a 2015 study, health and safety violations are more prevalent in public companies because

Lobbying actions that seek government legislation to provide tax breaks to specific organizations or industries would be an example of

In the U.S. market economy, the government performs the following prominent roles, except

It is generally believed that, because of the election process, the incentives and pressures for internal efficiency are stronger in the public sector than in the private sector.

A 2015 study of hospitals, power plants, and water utilities found that government-owned and operated companies were more likely than private companies to violate health and safety laws. Possible explanations for this include the following, except

Political logrolling always produces economically inefficient outcomes.

Voters are making a choice to spend money on three projects: a dam, a school, or a road. In the choice between the dam and the school, the majority favors the school. In a choice between a dam and a road, the majority favors a dam. In a choice between a road and a school, the majority favors a road. These rankings indicate that majority voting may