Exam 20: Political Economy and Public Choice

Which of the following programs are the two largest sources of the United States government budget?

In 2011, police in Appleton, WI, shut down a lemonade stand run by two young girls. The girls, who live near the venue for the annual Appleton Old Car Show, were subject to a recent ordinance that barred anyone from selling products within a two-block radius from local events. Local Alderman Peter Stueck defended the law, saying, "It's certainly not that Appleton is against little girls setting up their cookie and lemonade stands. But the overall intent of the ordinance was to protect the vendors at these events." Which concept best explains why this law had support to begin with?

Why are incentives so important in the decision to remain rationally ignorant about something?

Which of the following is TRUE about cross-country evidence on the relationship between economic freedom, standard of living, and democracy?

Is saying that a voter is rationally ignorant the same thing as saying the voter is irrational?

According to the median voter theorem, policy changes only whenever the ideal point of:

Economists say that voters are rationally ignorant about politics because:

The "Bridge to Nowhere":

Suppose you are in the middle of your senior year at school. An election comes up for the new student representatives to the school senate. The candidates are mostly sophomores. If elected, these students will have powerful votes in the senate on matters that affect the student body. Do you have an incentive to be rationally informed?

It is rational to be ignorant when:

Explain how politicians can use the concept of rational ignorance to their benefit.

Much to the chagrin of some Americans, conventional light bulbs were effectively banned in 2014 leaving only compact florescent lights (CFLs) on store shelves. The ban was encouraged, in part, by the makers of the more expensive CFLs. Which concept is best captured in this story?

The political power of farmers ________ as the share of farmers in the population decreased, because the benefits from farm subsidies became ________ concentrated.

Sometimes it is rational to be ignorant.

In a democratic society, the idea that there is a tendency for a given policy to reflect the middle view of all political ideals is called the:

The association between democracy and wealth occurs because democracy creates a demand for wealth.

According to Nobel Prize-winning economist Amartya Sen, famine would never take place in a:

Which of the following best explains why special interest groups maintain so much power in the United States political process?

Use the following to answer questions: Figure: Median Voter 2 -(Figure: Median Voter 2) What tax level could Jack Johnson support to ensure a victory in the election?

Economists tend to favor policies like price controls and tariffs.