Question 1

In 2007 which country had the highest ratio of government expenditures to GDP?

Accepted Answer

A)  Canada 
B)  Switzerland 
C)  United States 
D)  none of these answer options are correct. 
A)  Canada 
B)  Switzerland 
C)  United States 
D)  none of these answer options are correct.

Question 2

Arrow's impossibility theorem is not relevant to modern analysis of political economy.

Accepted Answer

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

Question 3

Special interest groups are a determent to the political process.

Accepted Answer

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

Question 4

Suppose that you have two people in an economy,Ms.Hundley and Mr.McKenna,who want to produce a public good S.Suppose we calculate the Lindahl equilibrium using the method in your textbook.In this case,the demand curve for Ms.Hundley is S = P1/2.The demand curve for Mr.McKenna is S = 8/P.If the marginal social cost of the project is 10,what is the Lindahl equilibrium quantity of S? What are the Lindahl prices?

Accepted Answer

Set P^1/2 = 8/P.Multiply both side

Question 5

Governments grow because low income individuals cannot use the political process to redistribute income towards themselves.

Accepted Answer

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

Question 6

The Marxist view would say that there is an overproduction of goods by the private sector.

Accepted Answer

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

Question 7

Government is inherently bad.

Accepted Answer

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

Question 8

Government bureaucrats want larger budgets

Accepted Answer

A)  because salaries are sometimes tied to budget size. 
B)  to fulfill an "empire building" tendency. 
C)  because it may be necessary to ensure marginal benefits of output equal marginal costs. 
D)  all of these answer options are correct. 
A)  because salaries are sometimes tied to budget size. 
B)  to fulfill an "empire building" tendency. 
C)  because it may be necessary to ensure marginal benefits of output equal marginal costs. 
D)  all of these answer options are correct.

Question 9

It is stated that,in democracy,every vote counts.To be a contentious voter in a democracy,one should

Accepted Answer

A)  spend some time learning about the issues. 
B)  find out about the positions of the candidates. 
C)  be sure to vote. 
D)  all of these answer options are correct. 
A)  spend some time learning about the issues. 
B)  find out about the positions of the candidates. 
C)  be sure to vote. 
D)  all of these answer options are correct.

Question 10

Government growth has been caused by

Accepted Answer

A)  citizens who want larger government. 
B)  lots of public lands available in the West. 
C)  increases in privatization. 
D)  inflation. 
A)  citizens who want larger government. 
B)  lots of public lands available in the West. 
C)  increases in privatization. 
D)  inflation.

Question 11

When each individual has consistent preferences,but those of the community are not consistent,it is known as

Accepted Answer

A)  agenda manipulation. 
B)  majority rule. 
C)  voting paradox. 
D)  logrolling. 
A)  agenda manipulation. 
B)  majority rule. 
C)  voting paradox. 
D)  logrolling.

Question 12

Lindahl prices

Accepted Answer

A)  result in efficient levels of public goods provision. 
B)  require honest revelation of preferences. 
C)  result in different prices for the same amount of output. 
D)  cause all of these. 
E)  none of these answer options are correct. 
A)  result in efficient levels of public goods provision. 
B)  require honest revelation of preferences. 
C)  result in different prices for the same amount of output. 
D)  cause all of these. 
E)  none of these answer options are correct.

In 2007 which country had the highest ratio of government expenditures to GDP?

Arrow's impossibility theorem is not relevant to modern analysis of political economy.

Special interest groups are a determent to the political process.

Governments grow because low income individuals cannot use the political process to redistribute income towards themselves.

The Marxist view would say that there is an overproduction of goods by the private sector.

Government is inherently bad.

Government bureaucrats want larger budgets

It is stated that,in democracy,every vote counts.To be a contentious voter in a democracy,one should

Government growth has been caused by

When each individual has consistent preferences,but those of the community are not consistent,it is known as

Lindahl prices

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

Filters

Exam 6: Political Economy

In 2007 which country had the highest ratio of government expenditures to GDP?

Arrow's impossibility theorem is not relevant to modern analysis of political economy.

Special interest groups are a determent to the political process.

Governments grow because low income individuals cannot use the political process to redistribute income towards themselves.

The Marxist view would say that there is an overproduction of goods by the private sector.

Government is inherently bad.

Government bureaucrats want larger budgets

It is stated that,in democracy,every vote counts.To be a contentious voter in a democracy,one should

Government growth has been caused by

When each individual has consistent preferences,but those of the community are not consistent,it is known as

Lindahl prices

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

Filters