Question 1

The median voter theorem predicts that the politician who ignores the median voters' wants will be elected.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer questions 
Figure: Kidney Trade Ban Policy Spectrum  
-(Figure: Kidney Trade Ban Policy Spectrum)Refer to figure.If A,B,and C are all candidates in the election,and an open market for kidney trading is the only issue being debated,based on the median voter theorem,which candidate will win the election?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  A,B,and C will each receive an equal number of votes. 
A)  A 
B)  B 
C)  C 
D)  A,B,and C will each receive an equal number of votes.

Question 3

Which of the following explains why the sugar quota is a winning policy for politicians?

Accepted Answer

A)  The people who are harmed by the quota are rationally informed. 
B)  The people who are harmed by the quota have strong incentive to oppose the policy. 
C)  The people who benefit from the quota are rationally ignorant. 
D)  The people who benefit from the quota have strong incentive to support the policy. 
A)  The people who are harmed by the quota are rationally informed. 
B)  The people who are harmed by the quota have strong incentive to oppose the policy. 
C)  The people who benefit from the quota are rationally ignorant. 
D)  The people who benefit from the quota have strong incentive to support the policy.

Question 4

Why do you think voters choose to be rationally ignorant even when it is time to elect a new president? I.Voters are not presented with enough information to make a rational decision.
II.Voters often believe that their vote does not make any difference in the political process.
III.The process of understanding the electorate system,the candidates' platforms,and critically assessing the candidates' policies takes up more of the voter's time than it is worth.

Accepted Answer

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

Question 5

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

Accepted Answer

A)  more political competition. 
B)  more newspapers. 
C)  either more political competition or more newspapers. 
D)  both more political competition and more newspapers. 
A)  more political competition. 
B)  more newspapers. 
C)  either more political competition or more newspapers. 
D)  both more political competition and more newspapers.

Question 6

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

Accepted Answer

A)  Social Security 
B)  welfare 
C)  foreign aid 
D)  health care 
A)  Social Security 
B)  welfare 
C)  foreign aid 
D)  health care

Question 7

One of the largest federal spending programs is foreign aid.

Accepted Answer

A) True 
 B)False

Question 8

The primary policy affecting the United States sugar market is a(n):

Accepted Answer

A)  import quota. 
B)  subsidy. 
C)  local content requirement. 
D)  tariff. 
A)  import quota. 
B)  subsidy. 
C)  local content requirement. 
D)  tariff.

Question 9

Which of the following statements seems to be that of a rationally ignorant person?

Accepted Answer

A)  I am not sure which of the soups are more nutritious and I'm in a hurry,so I will opt for the one with more vegetables in it. 
B)  I always compare prices and buy the good at the store where it has been priced the cheapest. 
C)  I don't know much about the candidates' views on defense,but he has better charisma than she does and so I will vote for him. 
D)  The male candidate has a much softer defense strategy than the female candidate so I have decided to vote for her. 
A)  I am not sure which of the soups are more nutritious and I'm in a hurry,so I will opt for the one with more vegetables in it. 
B)  I always compare prices and buy the good at the store where it has been priced the cheapest. 
C)  I don't know much about the candidates' views on defense,but he has better charisma than she does and so I will vote for him. 
D)  The male candidate has a much softer defense strategy than the female candidate so I have decided to vote for her.

Question 10

If policies like sugar quotas and tariffs have benefits that are concentrated among few people,why do taxpayers who pay for the costs of these policies remain rationally ignorant?

Accepted Answer

Because the costs are diffused

Question 11

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 12

It is rational to be ignorant when:

Accepted Answer

A)  the benefits of the information outweigh the costs of acquiring the information. 
B)  the costs of becoming informed are greater than the benefits of being informed. 
C)  you have limited mental capacity. 
D)  dollars or profits do not matter. 
A)  the benefits of the information outweigh the costs of acquiring the information. 
B)  the costs of becoming informed are greater than the benefits of being informed. 
C)  you have limited mental capacity. 
D)  dollars or profits do not matter.

Question 13

Stalin:

Accepted Answer

A)  instituted democratic reforms,leading to widespread prosperity. 
B)  took government control of the farms in Ukraine,leading to the starvation of millions of people. 
C)  increased the provision of public goods,which had a positive effect on lowering the unemployment rate. 
D)  tried unsuccessfully to expand voting rights in 1924 Russia. 
A)  instituted democratic reforms,leading to widespread prosperity. 
B)  took government control of the farms in Ukraine,leading to the starvation of millions of people. 
C)  increased the provision of public goods,which had a positive effect on lowering the unemployment rate. 
D)  tried unsuccessfully to expand voting rights in 1924 Russia.

Question 14

Political business cycles occur because voters are:

Accepted Answer

A)  irrational by always voting for the wrong politicians. 
B)  rational during election years,but politicians always deviate from what they promise. 
C)  rationally ignorant by not looking at economic conditions over a president's entire term. 
D)  rational by voting for politicians that improve economic conditions at least some of the time. 
A)  irrational by always voting for the wrong politicians. 
B)  rational during election years,but politicians always deviate from what they promise. 
C)  rationally ignorant by not looking at economic conditions over a president's entire term. 
D)  rational by voting for politicians that improve economic conditions at least some of the time.

Question 15

In general,democracies are the:

Accepted Answer

A)  wealthiest countries around the world but the least free economically. 
B)  wealthiest countries around the world and have the highest levels of economic freedom. 
C)  poorest countries around the world but have the highest levels of economic freedom. 
D)  poorest countries around the world and the least free economically. 
A)  wealthiest countries around the world but the least free economically. 
B)  wealthiest countries around the world and have the highest levels of economic freedom. 
C)  poorest countries around the world but have the highest levels of economic freedom. 
D)  poorest countries around the world and the least free economically.

Question 16

As countries become wealthier:

Accepted Answer

A)  they tend to have higher taxes. 
B)  its citizens tend to become more rationally ignorant. 
C)  they tend to become more democratic. 
D)  the median voter becomes more important. 
A)  they tend to have higher taxes. 
B)  its citizens tend to become more rationally ignorant. 
C)  they tend to become more democratic. 
D)  the median voter becomes more important.

Question 17

Which of the following is the smallest part of the United States budget?

Accepted Answer

A)  defense 
B)  interest on the federal debt 
C)  foreign aid 
D)  welfare 
A)  defense 
B)  interest on the federal debt 
C)  foreign aid 
D)  welfare

Question 18

When benefits are highly concentrated,but costs are diffused across a large number of people:

Accepted Answer

A)  the market tends to overproduce these goods. 
B)  the market tends to underproduce these goods. 
C)  the government tends to overproduce these goods. 
D)  the government tends to underproduce these goods. 
A)  the market tends to overproduce these goods. 
B)  the market tends to underproduce these goods. 
C)  the government tends to overproduce these goods. 
D)  the government tends to underproduce these goods.

Question 19

If the median voter theory holds in the first election,come reelection time,the candidates will reposition themselves closer to the median voter.

Accepted Answer

A) True 
 B)False

Question 20

The median voter is the person/voter who is exactly in the middle of the population,when one is counting the population in numbers.

Accepted Answer

A) True 
 B)False

The median voter theorem predicts that the politician who ignores the median voters' wants will be elected.

Which of the following explains why the sugar quota is a winning policy for politicians?

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

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

One of the largest federal spending programs is foreign aid.

The primary policy affecting the United States sugar market is a(n):

Which of the following statements seems to be that of a rationally ignorant person?

If policies like sugar quotas and tariffs have benefits that are concentrated among few people,why do taxpayers who pay for the costs of these policies remain rationally ignorant?

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

It is rational to be ignorant when:

Stalin:

Political business cycles occur because voters are:

In general,democracies are the:

As countries become wealthier:

Which of the following is the smallest part of the United States budget?

When benefits are highly concentrated,but costs are diffused across a large number of people:

If the median voter theory holds in the first election,come reelection time,the candidates will reposition themselves closer to the median voter.

The median voter is the person/voter who is exactly in the middle of the population,when one is counting the population in numbers.

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

The median voter theorem predicts that the politician who ignores the median voters' wants will be elected.

Which of the following explains why the sugar quota is a winning policy for politicians?

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

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

One of the largest federal spending programs is foreign aid.

The primary policy affecting the United States sugar market is a(n):

Which of the following statements seems to be that of a rationally ignorant person?

If policies like sugar quotas and tariffs have benefits that are concentrated among few people,why do taxpayers who pay for the costs of these policies remain rationally ignorant?

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

It is rational to be ignorant when:

Stalin:

Political business cycles occur because voters are:

In general,democracies are the:

As countries become wealthier:

Which of the following is the smallest part of the United States budget?

When benefits are highly concentrated,but costs are diffused across a large number of people:

If the median voter theory holds in the first election,come reelection time,the candidates will reposition themselves closer to the median voter.

The median voter is the person/voter who is exactly in the middle of the population,when one is counting the population in numbers.

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