Question 1

With multiple-peaked preferences,

Accepted Answer

A)  a unique political equilibrium does not exist. 
B)  all individuals have a point that is most preferred. 
C)  the law of transitivity is violated. 
D)  all of these answer options are correct. 
A)  a unique political equilibrium does not exist. 
B)  all individuals have a point that is most preferred. 
C)  the law of transitivity is violated. 
D)  all of these answer options are correct. D

Question 2

The median voter must have preferences that reflect those of all people in the community.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain B

Question 3

A deadweight loss is never

Accepted Answer

A)  found when people are still living. 
B)  found when marginal benefits equal marginal costs. 
C)  found in open economies. 
D)  allowed in the U.S. 
A)  found when people are still living. 
B)  found when marginal benefits equal marginal costs. 
C)  found in open economies. 
D)  allowed in the U.S. B

Question 4

Consider the following net benefits (measured in billions of dollars)that will result from the passage of two legislative bills,X and Y:
$$\begin{array} { | c | c | c | } 
\hline \text { Voter } & \text { Issue X } & \text { Issue Y } \
\hline \text { A } & 6 & - 3 \
\hline \text { B } & - 1 & 5 \
\hline \text { C } & - 2 & - 3 \
\hline
\end{array}$$ 
(a)Identify the logrolling opportunity present in this situation. 
(b)Identify the potential gains to voters. 
(c)Explain why logrolling is efficiency enhancing. (

Accepted Answer

a)On their own,neither issue X nor Y wil

Question 5

In a representative democracy,there are

Accepted Answer

A)  elected politicians. 
B)  public employees. 
C)  special interests. 
D)  all of these answer options are correct. 
A)  elected politicians. 
B)  public employees. 
C)  special interests. 
D)  all of these answer options are correct.

Question 6

Special interest groups are established on the basis of

Accepted Answer

A)  sources of labor. 
B)  size of income. 
C)  sources of income. 
D)  region. 
E)  all of these answer options are correct. 
A)  sources of labor. 
B)  size of income. 
C)  sources of income. 
D)  region. 
E)  all of these answer options are correct.

Question 7

Elected officials never care about the wishes of the voting public and govern using their own value system.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 8

Logrolling is

Accepted Answer

A)  a system used often at lumberjack contests. 
B)  a system that will always lead to worthy projects getting funded. 
C)  a system that involves the trading of votes. 
D)  a system that generally involves double-peaked preferences. 
A)  a system used often at lumberjack contests. 
B)  a system that will always lead to worthy projects getting funded. 
C)  a system that involves the trading of votes. 
D)  a system that generally involves double-peaked preferences.

Question 9

What should be the priority of politicians? Should they be mainly concerned with conveying and voting the wishes of the people that they represent? Should they be mainly concerned with standing for positions that they feel strongly about? Should they be mainly concerned with securing reelection?

Accepted Answer

All three issues are valid and must be d

Question 10

Applying economic principles to the analysis of political decision making is political economy.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 11

Political parties

Accepted Answer

A)  have a large influence on setting the political agenda of candidates. 
B)  are only concerned with market efficiency. 
C)  have primaries that influence the party platform. 
D)  have a large influence on setting the political agenda of candidates and are only concerned with market efficiency. 
E)  have a large influence on setting the political agenda of candidates and have primaries that influence the party platform. 
A)  have a large influence on setting the political agenda of candidates. 
B)  are only concerned with market efficiency. 
C)  have primaries that influence the party platform. 
D)  have a large influence on setting the political agenda of candidates and are only concerned with market efficiency. 
E)  have a large influence on setting the political agenda of candidates and have primaries that influence the party platform.

Question 12

A person prefers large and small levels of national defense to medium-sized levels of national defense.This person

Accepted Answer

A)  is violating the law of transitivity. 
B)  has single-peaked preferences. 
C)  has multiple-peaked preferences. 
D)  cannot achieve his or her most-preferred outcome. 
A)  is violating the law of transitivity. 
B)  has single-peaked preferences. 
C)  has multiple-peaked preferences. 
D)  cannot achieve his or her most-preferred outcome.

Question 13

In the presidential election of 2008,record numbers of people vote in national,state,and local elections.This phenomenon was even more pronounced among young voters.What are possible explanations for this?

Accepted Answer

Increasingly,young people felt disaffect

Question 14

Rent seeking involves

Accepted Answer

A)  finding reasonable rent rates. 
B)  price floors. 
C)  price ceilings. 
D)  citizen groups lobbying elected officials to manipulate government policy. 
A)  finding reasonable rent rates. 
B)  price floors. 
C)  price ceilings. 
D)  citizen groups lobbying elected officials to manipulate government policy.

Question 15

Majority rule voting

Accepted Answer

A)  requires a simple majority greater than half the voters. 
B)  requires that rules of order be established. 
C)  does not occur in democracies. 
D)  can only be applied to single issues. 
A)  requires a simple majority greater than half the voters. 
B)  requires that rules of order be established. 
C)  does not occur in democracies. 
D)  can only be applied to single issues.

Question 16

Special interest groups are not always perceived to add a positive to society.Discuss why this is so.

Accepted Answer

Often small groups of people form groups

Question 17

The possibility of multiple-peaked preferences cannot be ruled out.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 18

Which of the following is an example of a special-interest group?

Accepted Answer

A)  Democratic party 
B)  Bureau of Alcohol,Tobacco,and Firearms 
C)  National Rifle Association 
D)  Association of State Legislators 
E)  all of these answer options are correct. 
A)  Democratic party 
B)  Bureau of Alcohol,Tobacco,and Firearms 
C)  National Rifle Association 
D)  Association of State Legislators 
E)  all of these answer options are correct.

Question 19

Under certain assumptions,the actions of elected officials mimic the wishes of the median voter.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 20

Suppose there were three candidates running for office: Dewey,Cheatum,and Howe.Suppose a majority of voters preferred Cheatum to Dewey.Does this mean that a majority of voters preferred Howe to Dewey?

Accepted Answer

Suppose there are three voters.The follo

Exam 6: Political Economy

With multiple-peaked preferences,

The median voter must have preferences that reflect those of all people in the community.

A deadweight loss is never

In a representative democracy,there are

Special interest groups are established on the basis of

Elected officials never care about the wishes of the voting public and govern using their own value system.

Logrolling is

What should be the priority of politicians? Should they be mainly concerned with conveying and voting the wishes of the people that they represent? Should they be mainly concerned with standing for positions that they feel strongly about? Should they be mainly concerned with securing reelection?

Applying economic principles to the analysis of political decision making is political economy.

Political parties

A person prefers large and small levels of national defense to medium-sized levels of national defense.This person

In the presidential election of 2008,record numbers of people vote in national,state,and local elections.This phenomenon was even more pronounced among young voters.What are possible explanations for this?

Rent seeking involves

Majority rule voting

Special interest groups are not always perceived to add a positive to society.Discuss why this is so.

The possibility of multiple-peaked preferences cannot be ruled out.

Which of the following is an example of a special-interest group?

Under certain assumptions,the actions of elected officials mimic the wishes of the median voter.

Suppose there were three candidates running for office: Dewey,Cheatum,and Howe.Suppose a majority of voters preferred Cheatum to Dewey.Does this mean that a majority of voters preferred Howe to Dewey?

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

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