Question 1

Which three variables have been shown to have strong predictive power for election results?

Accepted Answer

A)  whether the country is at war,productivity,and the divorce rate 
B)  education status,life expectancy,corporate profits 
C)  disposable income,the inflation rate,and years in office for the party in power 
D)  the savings rate,the trade deficit,and the unemployment rate of single mothers 
A)  whether the country is at war,productivity,and the divorce rate 
B)  education status,life expectancy,corporate profits 
C)  disposable income,the inflation rate,and years in office for the party in power 
D)  the savings rate,the trade deficit,and the unemployment rate of single mothers

Question 2

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

Accepted Answer

A)  Special interest groups typically represent the largest United States companies,so get a lot of media attention. 
B)  Special interest groups stand to gain millions if particular laws are passed and lobby very hard for them;whereas voters stand to lose only a little and don't find opposing them worth their effort. 
C)  Both special interest groups as well as voters lobby politicians hard regarding certain legislation,however special interest groups typically win out because they have more money. 
D)  Special interest groups have been powerful in the past because of their ties to wealth;however,their power has been dwindling in recent years. 
A)  Special interest groups typically represent the largest United States companies,so get a lot of media attention. 
B)  Special interest groups stand to gain millions if particular laws are passed and lobby very hard for them;whereas voters stand to lose only a little and don't find opposing them worth their effort. 
C)  Both special interest groups as well as voters lobby politicians hard regarding certain legislation,however special interest groups typically win out because they have more money. 
D)  Special interest groups have been powerful in the past because of their ties to wealth;however,their power has been dwindling in recent years.

Question 3

Democracies usually have lots of economic freedom,but economic freedom is a poor predictor of a country's standard of living.

Accepted Answer

A) True 
 B)False

Question 4

When a policy is specialized in its impact,difficult to understand,and affects a small part of the economy,it is likely that lobbies and special interest groups will get their way.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is TRUE?

Accepted Answer

A)  Rational ignorance exists only in politics. 
B)  Rational ignorance still leads to an efficient outcome. 
C)  It never makes sense for individuals to be rationally ignorant. 
D)  Rational ignorance is bad because it leads to uninformed voters making decisions. 
A)  Rational ignorance exists only in politics. 
B)  Rational ignorance still leads to an efficient outcome. 
C)  It never makes sense for individuals to be rationally ignorant. 
D)  Rational ignorance is bad because it leads to uninformed voters making decisions.

Question 6

Imagine a beach with beachgoers evenly distributed throughout.It's a hot day and there are two ice cream vendors who start out far away from each other.They quickly discover that if they move closer to the center,they keep customers on their far side of the beach while poaching customers near their rival.Eventually,both vendors end up right next to each other in the middle of the beach.Which concept predicts the conclusion of this story?

Accepted Answer

A)  rational ignorance 
B)  opportunity cost 
C)  diffuse costs and concentrated benefits 
D)  median voter theorem 
A)  rational ignorance 
B)  opportunity cost 
C)  diffuse costs and concentrated benefits 
D)  median voter theorem

Question 7

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 8

When it comes to deciding on whether to vote for the incumbent party,voters:

Accepted Answer

A)  are more likely to vote out the incumbent party after strong growth in disposable income. 
B)  prefer incumbents the longer they have been in power. 
C)  focus on the state of the economy in the year of the election. 
D)  are farsighted and consider the impact of the incumbent party's future policies. 
A)  are more likely to vote out the incumbent party after strong growth in disposable income. 
B)  prefer incumbents the longer they have been in power. 
C)  focus on the state of the economy in the year of the election. 
D)  are farsighted and consider the impact of the incumbent party's future policies.

Question 9

The self-interest of politicians ______ with the social interest.

Accepted Answer

A)  always aligns 
B)  never aligns 
C)  sometimes aligns 
D)  aligns only under direct democracy 
A)  always aligns 
B)  never aligns 
C)  sometimes aligns 
D)  aligns only under direct democracy

Question 10

The theory of the median voter may not work if: I.voters do not vote.
II.voters do not vote for the policy closest to their own positions.
III.there is only a single dimension over which the voting occurs.

Accepted Answer

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

Question 11

Rational ignorance occurs when a person chooses to be misinformed when there is a large benefit for being informed.

Accepted Answer

A) True 
 B)False

Question 12

If the theory of the median voter holds,then extremes in political or economic stance cannot be maintained.

Accepted Answer

A) True 
 B)False

Question 13

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?

Accepted Answer

A)  5% 
B)  6% 
C)  7% 
D)  8% 
A)  5% 
B)  6% 
C)  7% 
D)  8%

Question 14

Part of the American Recovery and Reinvestment Act allocated $3.8 million in stimulus funds to build an artwork project in Rochester,NY.Funds were included for building decorative sidewalks,art in the sidewalks,interactive plazas with private art,and other amenities.Was this an efficient use of government funds? (Be sure to explain what an efficient use of funds would entail!)Why did more people not oppose funding this project?

Accepted Answer

8million/311 million United States popul

Question 15

With certain political policies,the people who benefit are rationally ignorant and have little incentive to oppose the policy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is FALSE?

Accepted Answer

A)  Democracies have a good record for economic growth. 
B)  Small nondemocratic elites are more likely to consider the welfare of larger groups. 
C)  Democracies tend to uphold private property rights and rule of law. 
D)  The incentives of small nondemocratic elites may help to keep their nations poor. 
A)  Democracies have a good record for economic growth. 
B)  Small nondemocratic elites are more likely to consider the welfare of larger groups. 
C)  Democracies tend to uphold private property rights and rule of law. 
D)  The incentives of small nondemocratic elites may help to keep their nations poor.

Question 17

Government ownership of the media:

Accepted Answer

A)  is uncommon in African countries. 
B)  causes an even greater degree of rational ignorance than private ownership. 
C)  reduces rational ignorance because governments usually require a greater number of news broadcasts. 
D)  decreases the effectiveness of special interest groups. 
A)  is uncommon in African countries. 
B)  causes an even greater degree of rational ignorance than private ownership. 
C)  reduces rational ignorance because governments usually require a greater number of news broadcasts. 
D)  decreases the effectiveness of special interest groups.

Question 18

Public ignorance is generally higher in less democratic countries because:

Accepted Answer

A)  the public is mostly irrational in those countries. 
B)  there is no incentive for the public to be informed in those countries. 
C)  the public receives too much information about how the country runs. 
D)  the public is not well-informed as a result of government control or censorship of the media. 
A)  the public is mostly irrational in those countries. 
B)  there is no incentive for the public to be informed in those countries. 
C)  the public receives too much information about how the country runs. 
D)  the public is not well-informed as a result of government control or censorship of the media.

Question 19

Sometimes it is rational to be ignorant.

Accepted Answer

A) True 
 B)False

Question 20

Sugar consumers are likely to oppose sugar quotas because the widespread costs,although small,fall on all households in the form of higher prices.

Accepted Answer

A) True 
 B)False

Which three variables have been shown to have strong predictive power for election results?

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

Democracies usually have lots of economic freedom,but economic freedom is a poor predictor of a country's standard of living.

When a policy is specialized in its impact,difficult to understand,and affects a small part of the economy,it is likely that lobbies and special interest groups will get their way.

Which of the following statements is TRUE?

Rational ignorance is when:

When it comes to deciding on whether to vote for the incumbent party,voters:

The self-interest of politicians ______ with the social interest.

The theory of the median voter may not work if: I.voters do not vote. II.voters do not vote for the policy closest to their own positions. III.there is only a single dimension over which the voting occurs.

Rational ignorance occurs when a person chooses to be misinformed when there is a large benefit for being informed.

If the theory of the median voter holds,then extremes in political or economic stance cannot be maintained.

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?

With certain political policies,the people who benefit are rationally ignorant and have little incentive to oppose the policy.

Which of the following statements is FALSE?

Government ownership of the media:

Public ignorance is generally higher in less democratic countries because:

Sometimes it is rational to be ignorant.

Sugar consumers are likely to oppose sugar quotas because the widespread costs,although small,fall on all households in the form of higher prices.

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

Which three variables have been shown to have strong predictive power for election results?

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

Democracies usually have lots of economic freedom,but economic freedom is a poor predictor of a country's standard of living.

When a policy is specialized in its impact,difficult to understand,and affects a small part of the economy,it is likely that lobbies and special interest groups will get their way.

Which of the following statements is TRUE?

Rational ignorance is when:

When it comes to deciding on whether to vote for the incumbent party,voters:

The self-interest of politicians ______ with the social interest.

The theory of the median voter may not work if: I.voters do not vote. II.voters do not vote for the policy closest to their own positions. III.there is only a single dimension over which the voting occurs.

Rational ignorance occurs when a person chooses to be misinformed when there is a large benefit for being informed.

If the theory of the median voter holds,then extremes in political or economic stance cannot be maintained.

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?

With certain political policies,the people who benefit are rationally ignorant and have little incentive to oppose the policy.

Which of the following statements is FALSE?

Government ownership of the media:

Public ignorance is generally higher in less democratic countries because:

Sometimes it is rational to be ignorant.

Sugar consumers are likely to oppose sugar quotas because the widespread costs,although small,fall on all households in the form of higher prices.

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