Exam 21: Political Economy and Public Choice

There are three voters and two representatives in a democracy.Voter 1 supports government spending of $20.Voter 2 supports government spending of $60.Voter 3 supports government spending of $70.According to the median voter theorem,politicians will converge upon a spending bill of:

If the benefits of informing oneself are greater than the costs,then ignorance is

The most important assumption of the median voter theorem is that:

One reason for the good record of democracies on economic growth is that:

If a special interest group represents 10% of society and gets a public policy passed that costs society $1 million and benefits that special interest group $1 million,the net payoff for the special interest group will be:

Which of the following statements is TRUE? I.A rising standard of living increases the demand for democracy. II.Democracy is associated with better institutions that lead to economic growth and high standard of living. III.The public is usually better informed about policies in nondemocracies.

According to the median voter theorem,the politician with a platform closest to the ideals of the median voter will win an election.

Evidence suggests that voters will vote for a political party based on the economic conditions that prevail in the year of the election.This behavior is known as:

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:

When a policy is highly visible,appears often in the newspapers,and has a major effect on the lives of millions of Americans,very often:

Special interest groups effectively lower the price of sugar to United States consumers.

According to public choice theory,people do not always make informed choices because:

In the case of the sugar quota,costs are ______ and benefits are ______.

Some people argue that mainstream economics ignores important ethical values.

Two weeks before the 1972 election,Richard Nixon:

Rational ignorance refers to the:

If voters are myopic,which of the following would we expect to see?

Large special interest groups tend to favor less-efficient policies because they make up a large fraction of society.

If the costs of informing oneself are greater than the benefits,then ignorance is

It is sometimes rational to be ignorant.