Exam 21: Political Economy and Public Choice

Use the following to answer questions Figure: Economic Freedom and Living Standards -(Figure: Economic Freedom and Living Standards)Refer to the figure.Based on this chart,we can conclude that:

When voters are myopic,politicians will prefer policies that generate:

In The Distinguished Gentleman,Eddie Murphy plays a con man with a similar name as a long-running Congressman.When the politician dies,Murphy runs for office using the politician's name: Jeff Johnson.He's careful not to go on camera but uses taglines in commercials such as "Johnson: The name you trust." He eventually achieves a slim victory.How does Murphy's character use voter ignorance to win the election? (Hint: The answer is only slightly different than the way most politicians use voter ignorance to win elections. )

Which of the following statements is NOT true about the sugar quota imposed by the United States government?

Suppose that a special interest group makes up 0.5% of the population.If a policy transfers $600 to the special interest at a cost of $100,000 to society,will the special interest group lobby for this policy?

Much to the chagrin of some Americans,conventional light bulbs were effectively banned in 2014 leaving only compact florescent lights (CFLs)on store shelves.The ban was encouraged,in part,by the makers of the more expensive CFLs.Which concept is best captured in this story?

Saying that voters are rationally ignorant is the same as saying voters are irrational.

Of the following,which is the largest part of the United States budget?

What explains the close connection between the economic boost just before Election Day and a politician winning reelection?

A special interest project that costs 200 million citizens $1 each,but benefits 100 citizens a total of $100 million is an inefficient use of government funds.

When benefits are concentrated and costs are diffused:

According to the median voter theorem,policy changes only whenever the ideal point of:

The greater the share of the population that is brought into political power,the more likely it is that policies will favor economic growth.

At one time,even coffee roasting was defined as a form of manufacturing.

The basic concept behind the median voter theorem is that: I.the median voter is defined as the voter for which half of the other voters want a policy to the left and half of the voters want a policy to the right. II.when voters vote,regardless of whether they vote closest to their preferences or not,the preference of the median voter is sure to win in a majority win election. III.if voters vote closest to their preferences,then the preference of the median voter is sure to win in a majority win election.

Voters are most responsive to economic performance ______ when deciding whether a president should be re-elected.

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

Just before the 1972 election,________ sent a letter to 24 million Social Security recipients informing them of increased payment benefits.

The government spends more on foreign aid than:

There are three voters and two representatives in a democracy.Voter 1 supports government spending of $30.Voter 2 supports government spending of $50.Voter 3 supports government spending of $90.According to the median voter theorem,politicians will converge upon a spending bill of: