Question 1

In the public sector,politicians:

Accepted Answer

A)  pursue primarily the general public interest since competition is less intense in the public sector. 
B)  pursue primarily the general public interest since they are concerned mostly with the collective good. 
C)  act in the narrow self-interest of their constituents and contributors to remain in office. 
D)  respond to the broader active political interests even though they choose to be rationally ignorant. 
A)  pursue primarily the general public interest since competition is less intense in the public sector. 
B)  pursue primarily the general public interest since they are concerned mostly with the collective good. 
C)  act in the narrow self-interest of their constituents and contributors to remain in office. 
D)  respond to the broader active political interests even though they choose to be rationally ignorant.

Question 2

Rational ignorance can not be seen in which of the following scenarios?

Accepted Answer

A)  A student has a final exam in exactly three hours.He knows from past experience that without at least some sleep he will be useless on the exam.In spite of the fact that he still has four chapters to read for the exam,he decides to sleep for 2.5 hours. 
B)  You are a worker looking for work in a recessionary environment.You get a phone interview after which you are offered a job and have to start the next day.To secure a paycheck,you accept without doing any further research on the company. 
C)  You have to fly urgently.You buy the first ticket available and it is expensive,but you pay anyway because you do not have time to research other flights. 
D)  You have to fly urgently;however,you do extensive research for over an hour to find the best deal. 
A)  A student has a final exam in exactly three hours.He knows from past experience that without at least some sleep he will be useless on the exam.In spite of the fact that he still has four chapters to read for the exam,he decides to sleep for 2.5 hours. 
B)  You are a worker looking for work in a recessionary environment.You get a phone interview after which you are offered a job and have to start the next day.To secure a paycheck,you accept without doing any further research on the company. 
C)  You have to fly urgently.You buy the first ticket available and it is expensive,but you pay anyway because you do not have time to research other flights. 
D)  You have to fly urgently;however,you do extensive research for over an hour to find the best deal.

Question 3

Democracy tends to push politicians toward the ideal point of the ______ voter.

Accepted Answer

A)  median 
B)  first 
C)  representative 
D)  final 
A)  median 
B)  first 
C)  representative 
D)  final

Question 4

Of the following,which is the smallest part of the United States budget?

Accepted Answer

A)  defense 
B)  interest on the federal debt 
C)  Social Security 
D)  welfare 
A)  defense 
B)  interest on the federal debt 
C)  Social Security 
D)  welfare

Question 5

Which of the following was the main cause of the 1974 famine in Bangladesh?

Accepted Answer

A)  floods 
B)  lack of food 
C)  lack of economic and political freedoms 
D)  high rice prices 
A)  floods 
B)  lack of food 
C)  lack of economic and political freedoms 
D)  high rice prices

Question 6

Public choice theory suggests that larger special interest groups:

Accepted Answer

A)  will have fewer incentives to take into account the social costs of inefficient policies. 
B)  will have more incentives to take into account the social costs of inefficient policies. 
C)  will the same incentives as smaller groups to take into account the social costs of inefficient policies. 
D)  will only consider the benefits of policies but not the costs. 
A)  will have fewer incentives to take into account the social costs of inefficient policies. 
B)  will have more incentives to take into account the social costs of inefficient policies. 
C)  will the same incentives as smaller groups to take into account the social costs of inefficient policies. 
D)  will only consider the benefits of policies but not the costs.

Question 7

________ argues that ________.

Accepted Answer

A)  Amartya Sen;famines don't happen in democracies 
B)  Rico Raines;starvation in many parts of the world could be avoided with adequate price controls 
C)  Amartya Sen;famines are more likely to occur where there are unfettered newspapers and political competition 
D)  David Ricardo;mass starvations are more likely in democracies 
A)  Amartya Sen;famines don't happen in democracies 
B)  Rico Raines;starvation in many parts of the world could be avoided with adequate price controls 
C)  Amartya Sen;famines are more likely to occur where there are unfettered newspapers and political competition 
D)  David Ricardo;mass starvations are more likely in democracies

Question 8

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

Accepted Answer

Consumers will engage in an activity if

Question 9

The incentive to inform oneself before an election is:

Accepted Answer

A)  high because every vote counts,especially in a democracy. 
B)  high because it's important for a civil society to be civically engaged. 
C)  low because one's own vote has virtually no chance of affecting the outcome of an election. 
D)  high because the outcome of an election has lasting consequences. 
A)  high because every vote counts,especially in a democracy. 
B)  high because it's important for a civil society to be civically engaged. 
C)  low because one's own vote has virtually no chance of affecting the outcome of an election. 
D)  high because the outcome of an election has lasting consequences.

Question 10

Explain why political candidates-even those from different parties-seem to have very similar viewpoints on important political issues like Medicare,Social Security,and education spending.

Accepted Answer

Candidates realize that the candidate wi

Question 11

When the battle of presidential elections is done,historians mark one personality and set of issues as having won the day and reflected the will of the:

Accepted Answer

A)  incumbent candidate. 
B)  challenging candidate. 
C)  voters. 
D)  government. 
A)  incumbent candidate. 
B)  challenging candidate. 
C)  voters. 
D)  government.

Question 12

Political business cycles occur when:

Accepted Answer

A)  economic conditions tend to improve immediately before elections but then worsen afterwards. 
B)  economic conditions tend to worsen immediately before elections but then improve afterwards. 
C)  the economy becomes more stable between elections. 
D)  economic conditions become less stable and show more random patterns over time. 
A)  economic conditions tend to improve immediately before elections but then worsen afterwards. 
B)  economic conditions tend to worsen immediately before elections but then improve afterwards. 
C)  the economy becomes more stable between elections. 
D)  economic conditions become less stable and show more random patterns over time.

Question 13

Ignorance is rational when the benefits of being informed are:

Accepted Answer

A)  greater than the costs of becoming informed. 
B)  less than the costs of becoming informed. 
C)  equal to the costs of becoming informed. 
D)  likely to be quite large but information is costless. 
A)  greater than the costs of becoming informed. 
B)  less than the costs of becoming informed. 
C)  equal to the costs of becoming informed. 
D)  likely to be quite large but information is costless.

Question 14

The American Crystal Sugar PAC is rationally:

Accepted Answer

A)  ignorant. 
B)  informed. 
C)  concerned. 
D)  cooperative. 
A)  ignorant. 
B)  informed. 
C)  concerned. 
D)  cooperative.

Question 15

Which of the following statements is TRUE? I.Sugar consumers pay higher prices because of sugar quotas,a sufficient incentive for them to campaign against politicians that favor quotas.
II.Sugar producers know more about sugar quotas than do sugar consumers because the quota system has a large effect on sugar industry profits.
III.When it comes to sugar trade policy,sugar producers are rationally informed and sugar consumers are rationally ignorant.

Accepted Answer

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

Question 16

Representative John Murphy has secured around $200 million of federal government money for a small airport near Juneburg,PA,that averages about 30 passengers a day.The costs of this government support:

Accepted Answer

A)  represent an external cost paid mostly by taxpayers who will never use the airport. 
B)  are well justified given that the benefits of the airport are locally concentrated. 
C)  are well justified given that the residents near the airport would pay little of the cost. 
D)  represent an external cost paid mostly by taxpayers who will begin to use the airport once it is completed. 
A)  represent an external cost paid mostly by taxpayers who will never use the airport. 
B)  are well justified given that the benefits of the airport are locally concentrated. 
C)  are well justified given that the residents near the airport would pay little of the cost. 
D)  represent an external cost paid mostly by taxpayers who will begin to use the airport once it is completed.

Question 17

Ten farmers,in a society with 100 people,would collectively gain $100,000 from a farm subsidy.All 100 people would pay the $300,000 cost of the subsidy program.Are the farmers willing to lobby the government in support of the subsidy?

Accepted Answer

A)  No,the benefits of $100,000 are less than the cost of $300,000. 
B)  No,the benefits of $10,000 per farmer are less than the costs of $300,000. 
C)  Yes,the benefits of $10,000 per farmer exceed the costs of $3,000 per person. 
D)  Yes,regardless of the cost,the farmers are supportive of any subsidy with benefits. 
A)  No,the benefits of $100,000 are less than the cost of $300,000. 
B)  No,the benefits of $10,000 per farmer are less than the costs of $300,000. 
C)  Yes,the benefits of $10,000 per farmer exceed the costs of $3,000 per person. 
D)  Yes,regardless of the cost,the farmers are supportive of any subsidy with benefits.

Question 18

Ignorance is

Accepted Answer

A)  rational only in extreme cases. 
B)  never rational. 
C)  always rational. 
D)  sometimes rational. 
A)  rational only in extreme cases. 
B)  never rational. 
C)  always rational. 
D)  sometimes rational.

Question 19

According to the text,one formula for political success is to:

Accepted Answer

A)  diffuse benefits and diffuse costs. 
B)  diffuse benefits and concentrate costs. 
C)  concentrate benefits and concentrate costs. 
D)  concentrate benefits and diffuse costs. 
A)  diffuse benefits and diffuse costs. 
B)  diffuse benefits and concentrate costs. 
C)  concentrate benefits and concentrate costs. 
D)  concentrate benefits and diffuse costs.

Question 20

One way to achieve political success is to:

Accepted Answer

A)  concentrate costs and diffuse benefits. 
B)  concentrate benefits and costs. 
C)  concentrate benefits and diffuse costs. 
D)  diffuse costs and benefits. 
A)  concentrate costs and diffuse benefits. 
B)  concentrate benefits and costs. 
C)  concentrate benefits and diffuse costs. 
D)  diffuse costs and benefits.

In the public sector,politicians:

Rational ignorance can not be seen in which of the following scenarios?

Democracy tends to push politicians toward the ideal point of the ______ voter.

Of the following,which is the smallest part of the United States budget?

Which of the following was the main cause of the 1974 famine in Bangladesh?

Public choice theory suggests that larger special interest groups:

argues that .

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

The incentive to inform oneself before an election is:

Explain why political candidates-even those from different parties-seem to have very similar viewpoints on important political issues like Medicare,Social Security,and education spending.

When the battle of presidential elections is done,historians mark one personality and set of issues as having won the day and reflected the will of the:

Political business cycles occur when:

Ignorance is rational when the benefits of being informed are:

The American Crystal Sugar PAC is rationally:

Representative John Murphy has secured around $200 million of federal government money for a small airport near Juneburg,PA,that averages about 30 passengers a day.The costs of this government support:

Ten farmers,in a society with 100 people,would collectively gain $100,000 from a farm subsidy.All 100 people would pay the $300,000 cost of the subsidy program.Are the farmers willing to lobby the government in support of the subsidy?

Ignorance is

According to the text,one formula for political success is to:

One way to achieve political success is to:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Filters

Exam 21: Political Economy and Public Choice

In the public sector,politicians:

Rational ignorance can not be seen in which of the following scenarios?

Democracy tends to push politicians toward the ideal point of the ______ voter.

Of the following,which is the smallest part of the United States budget?

Which of the following was the main cause of the 1974 famine in Bangladesh?

Public choice theory suggests that larger special interest groups:

________ argues that ________.

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

The incentive to inform oneself before an election is:

Explain why political candidates-even those from different parties-seem to have very similar viewpoints on important political issues like Medicare,Social Security,and education spending.

When the battle of presidential elections is done,historians mark one personality and set of issues as having won the day and reflected the will of the:

Political business cycles occur when:

Ignorance is rational when the benefits of being informed are:

The American Crystal Sugar PAC is rationally:

Representative John Murphy has secured around $200 million of federal government money for a small airport near Juneburg,PA,that averages about 30 passengers a day.The costs of this government support:

Ten farmers,in a society with 100 people,would collectively gain $100,000 from a farm subsidy.All 100 people would pay the $300,000 cost of the subsidy program.Are the farmers willing to lobby the government in support of the subsidy?

Ignorance is

According to the text,one formula for political success is to:

One way to achieve political success is to:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Filters

argues that .