Question 1

Explain why candidates with extreme views do not tend to get elected. What economic theorem is this most closely tied to?

Accepted Answer

The median voter theorem says that voter

Question 2

Which of the following statements is TRUE?
I. Increased newspaper circulation is associated with better and quicker political responses to a crisis in food availability.
II. Governments will provide higher levels of food distribution when there is more political competition.
III. Amartya Sen claims that no famine has ever taken place in a functioning democracy.

Accepted Answer

A)  I only 
B)  II only 
C)  I, II, and III 
D)  II and III only 
A)  I only 
B)  II only 
C)  I, II, and III 
D)  II and III only

Question 3

The "Bridge to Nowhere"

Accepted Answer

A)  is a fictional account of drawbridge that was made out of gold coins collected from Roman tax collectors. 
B)  was a bridge proposed to be built in Alaska that would have cost taxpayers $320 million, despite the availability of a ferry service that charged $6 per automobile. 
C)  refers to the inherent difficulty for Democrats and Republicans to bridge their differences with bipartisan legislation. 
D)  was an overturned law that required bridges to be paid for by people who benefited the most from their use. 
A)  is a fictional account of drawbridge that was made out of gold coins collected from Roman tax collectors. 
B)  was a bridge proposed to be built in Alaska that would have cost taxpayers $320 million, despite the availability of a ferry service that charged $6 per automobile. 
C)  refers to the inherent difficulty for Democrats and Republicans to bridge their differences with bipartisan legislation. 
D)  was an overturned law that required bridges to be paid for by people who benefited the most from their use.

Question 4

The median voter is the voter such that half of the voters are on one side of the issue and the other half of the voters are on the other side of the issue.

Accepted Answer

A) True 
 B)False

Question 5

Why is public food distribution better in election and preelection years?

Accepted Answer

A)  Higher political competition always ensures better food production in farming areas. 
B)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
C)  There is a lag of about four years between refurbishment of most food production systems. 
D)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems. 
A)  Higher political competition always ensures better food production in farming areas. 
B)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
C)  There is a lag of about four years between refurbishment of most food production systems. 
D)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems.

Question 6

The Fanjul brothers are:

Accepted Answer

A)  both Democrats. 
B)  a Democrat and a Republican. 
C)  both Republicans. 
D)  both registered as Independents. 
A)  both Democrats. 
B)  a Democrat and a Republican. 
C)  both Republicans. 
D)  both registered as Independents.

Question 7

________ groups tend to favor more efficient policies.

Accepted Answer

A)  Small 
B)  Large 
C)  Elite 
D)  Oligarchical 
A)  Small 
B)  Large 
C)  Elite 
D)  Oligarchical

Question 8

If consumers are hurt by quotas and tariffs such as the sugar quota, why do they remain rationally ignorant about these policies?

Accepted Answer

Although the sugar quota costs consumers

Question 9

When we look around the world, democracies tend to be the wealthiest countries and tend to be the countries with the best record for supporting markets.

Accepted Answer

A) True 
 B)False

Question 10

The median voter theorem says that candidates whose policy is closest to the middle of the spectrum will win.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is most likely to happen just before an election?

Accepted Answer

A)  higher taxes 
B)  low unemployment 
C)  higher inflation 
D)  higher government spending 
A)  higher taxes 
B)  low unemployment 
C)  higher inflation 
D)  higher government spending

Question 12

Which of the following is TRUE about public ignorance between democratic and nondemocratic countries?

Accepted Answer

A)  Public ignorance exists in most countries but it is generally higher in democratic countries than in nondemocratic countries. 
B)  Public ignorance exists only in democratic countries. 
C)  Public ignorance exists in democratic countries but it is typically higher in nondemocratic countries. 
D)  Public ignorance does not exist in democratic or nondemocratic countries because people are rational. 
A)  Public ignorance exists in most countries but it is generally higher in democratic countries than in nondemocratic countries. 
B)  Public ignorance exists only in democratic countries. 
C)  Public ignorance exists in democratic countries but it is typically higher in nondemocratic countries. 
D)  Public ignorance does not exist in democratic or nondemocratic countries because people are rational.

Question 13

In The Distinguished Gentleman, Eddie Murphy plays a con man with a similar name as a long-running Congressman. When the politician dies, Murphy runs for office using the politician's name: Jeff Johnson. He's careful not to go on camera but uses taglines in commercials such as "Johnson: The name you trust." He eventually achieves a slim victory. How does Murphy's character use voter ignorance to win the election? (Hint: The answer is only slightly different than the way most politicians use voter ignorance to win elections.)

Accepted Answer

A)  He's expecting most voters not to know their congressman died. 
B)  He's expecting most voters not to investigate him too much. 
C)  He's expecting that most people won't remember his campaign promises. 
D)  He's expecting most voters to neither investigate him too much, or to know that their congressman died. 
A)  He's expecting most voters not to know their congressman died. 
B)  He's expecting most voters not to investigate him too much. 
C)  He's expecting that most people won't remember his campaign promises. 
D)  He's expecting most voters to neither investigate him too much, or to know that their congressman died.

Question 14

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

Accepted Answer

A)  Agricultural interests seek a redistribution of income favoring themselves. 
B)  Price support programs reduce food costs, which helps the poor. 
C)  Subsidies promote the efficient use of agricultural resources. 
D)  Without the farm subsidies, food shortages would result. 
A)  Agricultural interests seek a redistribution of income favoring themselves. 
B)  Price support programs reduce food costs, which helps the poor. 
C)  Subsidies promote the efficient use of agricultural resources. 
D)  Without the farm subsidies, food shortages would result.

Question 15

According to the text, the 1974 famine in Bangladesh was largely a result of

Accepted Answer

A)  a lack of food supply. 
B)  rapid population growth. 
C)  an earthquake. 
D)  bad government policies. 
A)  a lack of food supply. 
B)  rapid population growth. 
C)  an earthquake. 
D)  bad government policies.

Question 16

Voters are myopic so they most likely focus on the economic conditions over a president's entire term.

Accepted Answer

A) True 
 B)False

Question 17

The median voter theorem implies that politicians:

Accepted Answer

A)  have a strong incentive to listen to the wishes of special interest groups. 
B)  only have to satisfy a small number of voters. 
C)  should never associate too strongly with one party. 
D)  have the incentive to listen to voters on issues that voters care about. 
A)  have a strong incentive to listen to the wishes of special interest groups. 
B)  only have to satisfy a small number of voters. 
C)  should never associate too strongly with one party. 
D)  have the incentive to listen to voters on issues that voters care about.

Question 18

Rational ignorance is when:

Accepted Answer

A)  full information is not available. 
B)  the benefit of becoming fully informed is lower than the cost. 
C)  the cost of information is low. 
D)  there is no benefit to gathering additional information. 
A)  full information is not available. 
B)  the benefit of becoming fully informed is lower than the cost. 
C)  the cost of information is low. 
D)  there is no benefit to gathering additional information.

Question 19

Explain the formula for political success. Provide an example.

Accepted Answer

Diffused costs and concentrated benefits

Question 20

Arguably, one of the best ways to explain why Americans seemingly know very little about current government policies or the state of the economy is that:

Accepted Answer

A)  the quality of American education is poor. 
B)  this information is not readily available to the general public. 
C)  the time and resources it costs to attain and process this information is more than the benefit received from having this information. 
D)  people are irrationally ignorant. 
A)  the quality of American education is poor. 
B)  this information is not readily available to the general public. 
C)  the time and resources it costs to attain and process this information is more than the benefit received from having this information. 
D)  people are irrationally ignorant.

Exam 20: Political Economy and Public Choice

Explain why candidates with extreme views do not tend to get elected. What economic theorem is this most closely tied to?

The "Bridge to Nowhere"

The median voter is the voter such that half of the voters are on one side of the issue and the other half of the voters are on the other side of the issue.

Why is public food distribution better in election and preelection years?

The Fanjul brothers are:

________ groups tend to favor more efficient policies.

If consumers are hurt by quotas and tariffs such as the sugar quota, why do they remain rationally ignorant about these policies?

When we look around the world, democracies tend to be the wealthiest countries and tend to be the countries with the best record for supporting markets.

The median voter theorem says that candidates whose policy is closest to the middle of the spectrum will win.

Which of the following is most likely to happen just before an election?

Which of the following is TRUE about public ignorance between democratic and nondemocratic countries?

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

According to the text, the 1974 famine in Bangladesh was largely a result of

Voters are myopic so they most likely focus on the economic conditions over a president's entire term.

The median voter theorem implies that politicians:

Rational ignorance is when:

Explain the formula for political success. Provide an example.

Arguably, one of the best ways to explain why Americans seemingly know very little about current government policies or the state of the economy is that:

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Public Goods and the Tragedy of the Commons

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

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