Question 1

According to Nobel Prize-winning economist Amartya Sen,the lack of democracy is the main reason for famine to occur throughout world history.

Accepted Answer

A) True 
 B)False

Question 2

The fall of the Roman Empire was partially attributable to:

Accepted Answer

A)  low taxes,low government spending,and unregulated markets. 
B)  high taxes which were used to finance projects with benefits that were less than their costs. 
C)  an overreliance on private property. 
D)  debtors who successfully petitioned Roman Senators for deflation. 
A)  low taxes,low government spending,and unregulated markets. 
B)  high taxes which were used to finance projects with benefits that were less than their costs. 
C)  an overreliance on private property. 
D)  debtors who successfully petitioned Roman Senators for deflation.

Question 3

Voter myopia refers to the fact that voters:

Accepted Answer

A)  are rationally ignorant. 
B)  respond to incentives. 
C)  primarily consider economic conditions in the year of the election. 
D)  look at economic conditions over a president's term. 
A)  are rationally ignorant. 
B)  respond to incentives. 
C)  primarily consider economic conditions in the year of the election. 
D)  look at economic conditions over a president's term.

Question 4

The Fanjuls are:

Accepted Answer

A)  sugar barons who give considerable money to politicians who make decisions on sugar quotas. 
B)  a consumer advocacy group attempting to ban special interest groups. 
C)  a new political party based on the opposition to special interest politics. 
D)  free traders who propose doing away with all tariffs. 
A)  sugar barons who give considerable money to politicians who make decisions on sugar quotas. 
B)  a consumer advocacy group attempting to ban special interest groups. 
C)  a new political party based on the opposition to special interest politics. 
D)  free traders who propose doing away with all tariffs.

Question 5

Special interest groups are so powerful because the costs of their policy are widely disbursed across the population and hence largely unopposed.

Accepted Answer

A) True 
 B)False

Question 6

The median voter theorem does not accurately predict an election outcome if:

Accepted Answer

A)  the election is dictated by a simple majority rule. 
B)  voters become rational about their election decisions. 
C)  voters always vote for the policy that is closest to their ideal point. 
D)  voters do not vote for the policy that is closest to their ideal point. 
A)  the election is dictated by a simple majority rule. 
B)  voters become rational about their election decisions. 
C)  voters always vote for the policy that is closest to their ideal point. 
D)  voters do not vote for the policy that is closest to their ideal point.

Question 7

Which of the following would be the most likely outcome if a college professor awards grades based on average test scores and assigns the same grade to everyone in the class?

Accepted Answer

A)  Students will collaborate to get a better grade and achieve higher payoff. 
B)  Students will study more because studying has a higher payoff. 
C)  Students will study less because studying has a lower payoff. 
D)  Students will study the same amount as they did before because their scores will still impact the average score. 
A)  Students will collaborate to get a better grade and achieve higher payoff. 
B)  Students will study more because studying has a higher payoff. 
C)  Students will study less because studying has a lower payoff. 
D)  Students will study the same amount as they did before because their scores will still impact the average score.

Question 8

With certain political policies,the people who are harmed are rationally ignorant and have little incentive to oppose the policy.

Accepted Answer

A) True 
 B)False

Question 9

How do special interests affect tax policy in the United States?

Accepted Answer

Politicians add special intere

Question 10

Which of the following variables is the least helpful in predicting presidential elections?

Accepted Answer

A)  growth in personal income in the year of the election 
B)  inflation in the year of the election 
C)  the popularity level of the presidential personality 
D)  the length of time the incumbent party has been in power 
A)  growth in personal income in the year of the election 
B)  inflation in the year of the election 
C)  the popularity level of the presidential personality 
D)  the length of time the incumbent party has been in power

Question 11

Voters are rationally ignorant because the incentives to being informed are low.

Accepted Answer

A) True 
 B)False

Question 12

An abstract from a recent economics paper reads as follows: We explore whether presidential and congressional influences affect the rate of disaster declaration and the allocation of FEMA (Federal Emergency Management Agency)disaster expenditures across states.We find that states politically important to the president have a higher rate of disaster declaration by the president (which is necessary to receive FEMA funding).
This research is an example of

Accepted Answer

A)  political economics. 
B)  civil reasoning. 
C)  public choice. 
D)  myopic rationality. 
A)  political economics. 
B)  civil reasoning. 
C)  public choice. 
D)  myopic rationality.

Question 13

Studying politics doesn't pay because the outcome:

Accepted Answer

A)  of any election is mostly determined by what other people do,not by what you do. 
B)  of any election is mostly determined by what you do,not by what other people do. 
C)  of any election is always inconsistent with the expectation. 
D)  of any election can be manipulated by politicians. 
A)  of any election is mostly determined by what other people do,not by what you do. 
B)  of any election is mostly determined by what you do,not by what other people do. 
C)  of any election is always inconsistent with the expectation. 
D)  of any election can be manipulated by politicians.

Question 14

Politicians have a greater interest in serving the voters' will when:

Accepted Answer

A)  voters are well-informed. 
B)  special interest groups are nonexistent. 
C)  the media does not get involved. 
D)  the policy is highly visible. 
A)  voters are well-informed. 
B)  special interest groups are nonexistent. 
C)  the media does not get involved. 
D)  the policy is highly visible.

Question 15

Why do some voters choose to be rationally ignorant?

Accepted Answer

A)  The cost of informing themselves about candidates and policies are greater than the benefits. 
B)  They get distracted with life and never get around to searching for the relevant information. 
C)  Their parents and peers largely influence voter's preferences. 
D)  Reduced public school funding has meant less money spent on teaching civic classes. 
A)  The cost of informing themselves about candidates and policies are greater than the benefits. 
B)  They get distracted with life and never get around to searching for the relevant information. 
C)  Their parents and peers largely influence voter's preferences. 
D)  Reduced public school funding has meant less money spent on teaching civic classes.

Question 16

Presidents have an easier time changing ________ than ________ during an election year.

Accepted Answer

A)  GDP;taxes and transfer payments 
B)  the overall economy;GDP 
C)  taxes and transfer payments;GDP 
D)  GDP;overall economy 
A)  GDP;taxes and transfer payments 
B)  the overall economy;GDP 
C)  taxes and transfer payments;GDP 
D)  GDP;overall economy

Question 17

A woman approached Senator Adlai Stevenson when he was running for president,saying,"Senator,you have the vote of every thinking person!" The Senator is often credited with responding: "That's not enough,madam,we need a majority!" Which concept does this quip best reflect?

Accepted Answer

A)  rational ignorance 
B)  opportunity cost 
C)  diffuse costs and concentrated benefits 
D)  median voter theorem 
A)  rational ignorance 
B)  opportunity cost 
C)  diffuse costs and concentrated benefits 
D)  median voter theorem

Question 18

Special interest groups are rationally:

Accepted Answer

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

Question 19

Which of the following statements is FALSE?

Accepted Answer

A)  Economists support free and competitive markets. 
B)  Economists are skeptical about price controls and tariffs. 
C)  Economists favor command and control regulation. 
D)  Economists oppose super-high inflation rates. 
A)  Economists support free and competitive markets. 
B)  Economists are skeptical about price controls and tariffs. 
C)  Economists favor command and control regulation. 
D)  Economists oppose super-high inflation rates.

Question 20

The incumbent party tends to win elections when:

Accepted Answer

A)  inflation is high. 
B)  consumers' disposable income is high. 
C)  the incumbent party has not been in power for very long. 
D)  unemployment is high. 
A)  inflation is high. 
B)  consumers' disposable income is high. 
C)  the incumbent party has not been in power for very long. 
D)  unemployment is high.

According to Nobel Prize-winning economist Amartya Sen,the lack of democracy is the main reason for famine to occur throughout world history.

The fall of the Roman Empire was partially attributable to:

Voter myopia refers to the fact that voters:

The Fanjuls are:

Special interest groups are so powerful because the costs of their policy are widely disbursed across the population and hence largely unopposed.

The median voter theorem does not accurately predict an election outcome if:

Which of the following would be the most likely outcome if a college professor awards grades based on average test scores and assigns the same grade to everyone in the class?

With certain political policies,the people who are harmed are rationally ignorant and have little incentive to oppose the policy.

How do special interests affect tax policy in the United States?

Which of the following variables is the least helpful in predicting presidential elections?

Voters are rationally ignorant because the incentives to being informed are low.

Studying politics doesn't pay because the outcome:

Politicians have a greater interest in serving the voters' will when:

Why do some voters choose to be rationally ignorant?

Presidents have an easier time changing than during an election year.

A woman approached Senator Adlai Stevenson when he was running for president,saying,"Senator,you have the vote of every thinking person!" The Senator is often credited with responding: "That's not enough,madam,we need a majority!" Which concept does this quip best reflect?

Special interest groups are rationally:

Which of the following statements is FALSE?

The incumbent party tends to win elections when:

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

According to Nobel Prize-winning economist Amartya Sen,the lack of democracy is the main reason for famine to occur throughout world history.

The fall of the Roman Empire was partially attributable to:

Voter myopia refers to the fact that voters:

The Fanjuls are:

Special interest groups are so powerful because the costs of their policy are widely disbursed across the population and hence largely unopposed.

The median voter theorem does not accurately predict an election outcome if:

Which of the following would be the most likely outcome if a college professor awards grades based on average test scores and assigns the same grade to everyone in the class?

With certain political policies,the people who are harmed are rationally ignorant and have little incentive to oppose the policy.

How do special interests affect tax policy in the United States?

Which of the following variables is the least helpful in predicting presidential elections?

Voters are rationally ignorant because the incentives to being informed are low.

Studying politics doesn't pay because the outcome:

Politicians have a greater interest in serving the voters' will when:

Why do some voters choose to be rationally ignorant?

Presidents have an easier time changing ________ than ________ during an election year.

A woman approached Senator Adlai Stevenson when he was running for president,saying,"Senator,you have the vote of every thinking person!" The Senator is often credited with responding: "That's not enough,madam,we need a majority!" Which concept does this quip best reflect?

Special interest groups are rationally:

Which of the following statements is FALSE?

The incumbent party tends to win elections when:

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

Presidents have an easier time changing than during an election year.