Question 1

Mass starvation in Ukraine in the 1920s was the result of:

Accepted Answer

A)  bad weather conditions that destroyed more than 45% of the crops. 
B)  Soviet leader Joseph Stalin's deliberate policies to eliminate potential political threats. 
C)  the majority of Ukrainians voting for collectivized farms. 
D)  the democratic policies voted on by the Russian people. 
A)  bad weather conditions that destroyed more than 45% of the crops. 
B)  Soviet leader Joseph Stalin's deliberate policies to eliminate potential political threats. 
C)  the majority of Ukrainians voting for collectivized farms. 
D)  the democratic policies voted on by the Russian people.

Question 2

Economic conditions are a ______ predictor of United States presidential election outcomes.

Accepted Answer

A)  good 
B)  poor 
C)  fair 
D)  volatile 
A)  good 
B)  poor 
C)  fair 
D)  volatile

Question 3

According to Amartya Sen,the most powerful way to reduce the likelihood of famine is through:

Accepted Answer

A)  enhancement of food production. 
B)  improvement of distribution. 
C)  introduction of new technologies. 
D)  enhancement of democratic practices. 
A)  enhancement of food production. 
B)  improvement of distribution. 
C)  introduction of new technologies. 
D)  enhancement of democratic practices.

Question 4

Voter decisions seem to depend greatly on:

Accepted Answer

A)  economic conditions in the year of an election. 
B)  the beauty of the candidates. 
C)  the weather. 
D)  the amount of campaign contributions. 
A)  economic conditions in the year of an election. 
B)  the beauty of the candidates. 
C)  the weather. 
D)  the amount of campaign contributions.

Question 5

People who spend more time and effort investigating the advantages and disadvantages of different flat-screen televisions when they go to purchase one than they do investigating the strengths and weaknesses of presidential candidates are saying,in effect,that:

Accepted Answer

A)  they do not think it matters who is elected president. 
B)  they are irrational,because the choice of a president is obviously far more important than the choice of a TV. 
C)  a good TV is more important to their well-being than a good president. 
D)  they expect to use the information on the merits of alternative TVs to greater personal advantage than they could information on the merits of alternative presidential candidates. 
A)  they do not think it matters who is elected president. 
B)  they are irrational,because the choice of a president is obviously far more important than the choice of a TV. 
C)  a good TV is more important to their well-being than a good president. 
D)  they expect to use the information on the merits of alternative TVs to greater personal advantage than they could information on the merits of alternative presidential candidates.

Question 6

Explain how politicians can use the concept of rational ignorance to their benefit.

Accepted Answer

Consider the example of the sugar quota

Question 7

Over the past 100 years the American voter has voted for the party of the ________ when the economy is doing ________.

Accepted Answer

A)  incumbent;well 
B)  incumbent;poorly 
C)  left;well 
D)  right;poorly 
A)  incumbent;well 
B)  incumbent;poorly 
C)  left;well 
D)  right;poorly

Question 8

According to the median voter theorem,when do political outcomes change?

Accepted Answer

A)  when the consensus changes 
B)  as a result of a compromise 
C)  when the median voter changes his or her preferences 
D)  when there is new technology to account for proper voting 
A)  when the consensus changes 
B)  as a result of a compromise 
C)  when the median voter changes his or her preferences 
D)  when there is new technology to account for proper voting

Question 9

Which of the following is most likely the result of rational ignorance?

Accepted Answer

A)  Democrats get elected more often than Republicans. 
B)  Older people tend to vote more often than younger people. 
C)  Better-looking candidates tend to get more votes. 
D)  More candidates tend to enter the political race when there is not an incumbent running. 
A)  Democrats get elected more often than Republicans. 
B)  Older people tend to vote more often than younger people. 
C)  Better-looking candidates tend to get more votes. 
D)  More candidates tend to enter the political race when there is not an incumbent running.

Question 10

Explain the assumptions behind the median voter theorem.In which cases will the median voter theorem NOT apply?

Accepted Answer

The median voter theorem is constructed

Question 11

Which of the following is an example of rational ignorance?

Accepted Answer

A)  Glenda chooses to purchase a new CD at the store 1 mile from her home instead of driving all over town to see if she can find a lower price. 
B)  Bob chooses not to vote since his vote will never swing the outcome of an election. 
C)  ABC Corporation chooses to hire local workers instead of outsourcing jobs to another country. 
D)  Jane decides not to study for her test tomorrow even though studying could raise her grade significantly. 
A)  Glenda chooses to purchase a new CD at the store 1 mile from her home instead of driving all over town to see if she can find a lower price. 
B)  Bob chooses not to vote since his vote will never swing the outcome of an election. 
C)  ABC Corporation chooses to hire local workers instead of outsourcing jobs to another country. 
D)  Jane decides not to study for her test tomorrow even though studying could raise her grade significantly.

Question 12

How are elections correlated to economic business cycles in the United States?

Accepted Answer

In the United States political cycles co

Question 13

According to the text,popular surveys about government programs show evidence that the majority of American voters are:

Accepted Answer

A)  perfectly rational. 
B)  irrational. 
C)  rationally ignorant. 
D)  well informed about all government programs. 
A)  perfectly rational. 
B)  irrational. 
C)  rationally ignorant. 
D)  well informed about all government programs.

Question 14

Which of the following is TRUE about cross-country evidence on the relationship between economic freedom,standard of living,and democracy?

Accepted Answer

A)  There is no clear relationship between economic freedom,the standard of living,and the level of democracy. 
B)  Economic freedom,the standard of living,and the level of democracy are positively related. 
C)  Economic freedom and the standard of living are positively related,but they are not related to the level of democracy. 
D)  Economic freedom is higher in countries that are less democratic,but lower in countries that are more democratic. 
A)  There is no clear relationship between economic freedom,the standard of living,and the level of democracy. 
B)  Economic freedom,the standard of living,and the level of democracy are positively related. 
C)  Economic freedom and the standard of living are positively related,but they are not related to the level of democracy. 
D)  Economic freedom is higher in countries that are less democratic,but lower in countries that are more democratic.

Question 15

Rational ignorance may cause voters to make irrational decisions,such as judging a politician based on the level of oil prices,even though markets set oil prices.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following explains why extreme candidates rarely win political elections?

Accepted Answer

A)  rational ignorance 
B)  median voter theorem 
C)  special interest groups 
D)  myopic voters 
A)  rational ignorance 
B)  median voter theorem 
C)  special interest groups 
D)  myopic voters

Question 17

An issue that generates substantial benefits to a small group of individuals while imposing a small cost on many others is called a:

Accepted Answer

A)  nonissue. 
B)  special-interest issue. 
C)  popular issue. 
D)  minority issue. 
A)  nonissue. 
B)  special-interest issue. 
C)  popular issue. 
D)  minority issue.

Question 18

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

Accepted Answer

A)  Agricultural interests seek a redistribution of income favoring themselves. 
B)  Price support programs reduce food costs,which helps the poor. 
C)  Subsidies promote the efficient use of agricultural resources. 
D)  Without the farm subsidies,food shortages would result. 
A)  Agricultural interests seek a redistribution of income favoring themselves. 
B)  Price support programs reduce food costs,which helps the poor. 
C)  Subsidies promote the efficient use of agricultural resources. 
D)  Without the farm subsidies,food shortages would result.

Question 19

Which of the following is the largest 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 20

Why do studies show that food distribution is not better in economies with higher political competition?

Accepted Answer

A)  Higher political competition always ensures better food production in farming areas. 
B)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems. 
C)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
D)  Studies show that food distribution IS better in economies with higher political competition. 
A)  Higher political competition always ensures better food production in farming areas. 
B)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems. 
C)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
D)  Studies show that food distribution IS better in economies with higher political competition.

Exam 21: Political Economy and Public Choice

Mass starvation in Ukraine in the 1920s was the result of:

Economic conditions are a ______ predictor of United States presidential election outcomes.

According to Amartya Sen,the most powerful way to reduce the likelihood of famine is through:

Voter decisions seem to depend greatly on:

People who spend more time and effort investigating the advantages and disadvantages of different flat-screen televisions when they go to purchase one than they do investigating the strengths and weaknesses of presidential candidates are saying,in effect,that:

Explain how politicians can use the concept of rational ignorance to their benefit.

Over the past 100 years the American voter has voted for the party of the ________ when the economy is doing ________.

According to the median voter theorem,when do political outcomes change?

Which of the following is most likely the result of rational ignorance?

Explain the assumptions behind the median voter theorem.In which cases will the median voter theorem NOT apply?

Which of the following is an example of rational ignorance?

How are elections correlated to economic business cycles in the United States?

According to the text,popular surveys about government programs show evidence that the majority of American voters are:

Which of the following is TRUE about cross-country evidence on the relationship between economic freedom,standard of living,and democracy?

Rational ignorance may cause voters to make irrational decisions,such as judging a politician based on the level of oil prices,even though markets set oil prices.

Which of the following explains why extreme candidates rarely win political elections?

An issue that generates substantial benefits to a small group of individuals while imposing a small cost on many others is called a:

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

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

Why do studies show that food distribution is not better in economies with higher political competition?

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

Over the past 100 years the American voter has voted for the party of the when the economy is doing .