Question 1

Evidence from an important study of media ownership concludes that:

Accepted Answer

A)  private ownership of the press restricts information flows to the public,which reduces the quality of the government. 
B)  public ownership of the press increases information flows to the public,which increases the quality of the government. 
C)  government ownership of the press restricts information flows to the public,which reduces the quality of the government. 
D)  there is little correlation between media ownership and the efficiency of government. 
A)  private ownership of the press restricts information flows to the public,which reduces the quality of the government. 
B)  public ownership of the press increases information flows to the public,which increases the quality of the government. 
C)  government ownership of the press restricts information flows to the public,which reduces the quality of the government. 
D)  there is little correlation between media ownership and the efficiency of government.

Question 2

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 3

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?

Accepted Answer

Chances are that you will remain rationa

Question 4

Let's check on whether you are rationally ignorant.Which of the following four items is the biggest in terms of government expenditure?

Accepted Answer

A)  defense 
B)  welfare 
C)  foreign aid 
D)  health care 
A)  defense 
B)  welfare 
C)  foreign aid 
D)  health care

Question 5

Suppose the government is considering a proposal for a new chicken subsidy.Growers of chickens stand to gain approximately $25 million in government funds over the next year if the proposal passes.The money,however,will come from increased taxes on consumers of chicken (a new "chicken tax").If there are approximately 100 million consumers in the chicken market each year,how much would each be willing to spend,on average,to contest the chicken tax?

Accepted Answer

A)  $25 million 
B)  $100 
C)  $25 
D)  $0.25 
A)  $25 million 
B)  $100 
C)  $25 
D)  $0.25

Question 6

Which of the following is NOT the reason why ignorance about political matters is important?

Accepted Answer

A)  It is difficult for voters to make informed choices if they are not well informed. 
B)  Voters who are rationally ignorant will often make decisions for irrational reasons. 
C)  Voters who are well informed would perceive politics as entertainment. 
D)  Rational ignorance matters because not everyone is rationally ignorant. 
A)  It is difficult for voters to make informed choices if they are not well informed. 
B)  Voters who are rationally ignorant will often make decisions for irrational reasons. 
C)  Voters who are well informed would perceive politics as entertainment. 
D)  Rational ignorance matters because not everyone is rationally ignorant.

Question 7

The median voter is defined as the voter such that half the other voters are on one end of the spectrum and half are on the other.

Accepted Answer

A) True 
 B)False

Question 8

The incumbent party will most likely get reelected when economic conditions are worsening in an economy.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

No,rational ignorance and irrationality

Question 10

Which of the following statements is TRUE?

Accepted Answer

A)  Small groups are less likely to favor efficient policies than large groups. 
B)  The larger the group,the more likely it will favor special interests rather than economic growth. 
C)  Quasi-democracies prefer a highly educated population because they are more accepting of the leadership's policies. 
D)  Oligarchies tend to use the print media to inform public debate and encourage political competition. 
A)  Small groups are less likely to favor efficient policies than large groups. 
B)  The larger the group,the more likely it will favor special interests rather than economic growth. 
C)  Quasi-democracies prefer a highly educated population because they are more accepting of the leadership's policies. 
D)  Oligarchies tend to use the print media to inform public debate and encourage political competition.

Question 11

Data for the United States show that the incumbent party tends to win the election if: I.personal disposable income is growing.
II.the inflation rate is low.
III.the political party has not been in power for too many continuous terms.

Accepted Answer

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

Question 12

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 13

Voters have a strong incentive to be well-informed about the positions of political candidates-after all,every vote counts.

Accepted Answer

A) True 
 B)False

Question 14

An incumbent president can take advantage of voters' myopia to win a reelection by:

Accepted Answer

A)  applying policies with small immediate gains but large costs in the future. 
B)  applying policies with small immediate costs but large gains in the future. 
C)  applying only policies that have the same amount of gains as costs,so there is no net benefit. 
D)  doing nothing. 
A)  applying policies with small immediate gains but large costs in the future. 
B)  applying policies with small immediate costs but large gains in the future. 
C)  applying only policies that have the same amount of gains as costs,so there is no net benefit. 
D)  doing nothing.

Question 15

The acronym PAC stands for:

Accepted Answer

A)  politically active committee. 
B)  political agent coordinator. 
C)  politically active coordinator. 
D)  political action committee. 
A)  politically active committee. 
B)  political agent coordinator. 
C)  politically active coordinator. 
D)  political action committee.

Question 16

Political contributions suggest that PACs are rationally:

Accepted Answer

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

Question 17

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 18

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

Accepted Answer

A)  nondemocracy. 
B)  functioning democracy. 
C)  socialist state. 
D)  state in which the government has ultimate control of food distribution. 
A)  nondemocracy. 
B)  functioning democracy. 
C)  socialist state. 
D)  state in which the government has ultimate control of food distribution.

Question 19

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.

Question 20

Nobel Prize-winning economist Amartya Sen indicated that hunger is caused by a lack of exchange entitlements.In other words,food may be plentiful but people starve because they are unable to access it.Can you explain how this is possible even if markets are well functioning?

Accepted Answer

A lack of economic power,especially if c

Evidence from an important study of media ownership concludes that:

The "Bridge to Nowhere"

Let's check on whether you are rationally ignorant.Which of the following four items is the biggest in terms of government expenditure?

Which of the following is NOT the reason why ignorance about political matters is important?

The median voter is defined as the voter such that half the other voters are on one end of the spectrum and half are on the other.

The incumbent party will most likely get reelected when economic conditions are worsening in an economy.

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

Which of the following statements is TRUE?

Data for the United States show that the incumbent party tends to win the election if: I.personal disposable income is growing. II.the inflation rate is low. III.the political party has not been in power for too many continuous terms.

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

Voters have a strong incentive to be well-informed about the positions of political candidates-after all,every vote counts.

An incumbent president can take advantage of voters' myopia to win a reelection by:

The acronym PAC stands for:

Political contributions suggest that PACs are rationally:

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.

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

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:

Nobel Prize-winning economist Amartya Sen indicated that hunger is caused by a lack of exchange entitlements.In other words,food may be plentiful but people starve because they are unable to access it.Can you explain how this is possible even if markets are well functioning?

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

Evidence from an important study of media ownership concludes that:

The "Bridge to Nowhere"

Let's check on whether you are rationally ignorant.Which of the following four items is the biggest in terms of government expenditure?

Which of the following is NOT the reason why ignorance about political matters is important?

The median voter is defined as the voter such that half the other voters are on one end of the spectrum and half are on the other.

The incumbent party will most likely get reelected when economic conditions are worsening in an economy.

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

Which of the following statements is TRUE?

Data for the United States show that the incumbent party tends to win the election if: I.personal disposable income is growing. II.the inflation rate is low. III.the political party has not been in power for too many continuous terms.

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

Voters have a strong incentive to be well-informed about the positions of political candidates-after all,every vote counts.

An incumbent president can take advantage of voters' myopia to win a reelection by:

The acronym PAC stands for:

Political contributions suggest that PACs are rationally:

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.

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

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:

Nobel Prize-winning economist Amartya Sen indicated that hunger is caused by a lack of exchange entitlements.In other words,food may be plentiful but people starve because they are unable to access it.Can you explain how this is possible even if markets are well functioning?

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