Exam 5: Governments Role and Government Failure

Politicians seeking reelection tend to do the following, except:

Even in democratic governments, we tend to have a problem with accountability due to the following reasons, except:

The government's budget deficit refers to the:

The politicization of monetary and fiscal policies tends to enhance their effectiveness in stabilizing the economy.

Problems with collective decision-making and economic inefficiency in government are subjects that are studied in an area of economics called public:

The situation where politicians make decisions that will raise their chances of reelection, even if those decisions are detrimental to the general public, is referred to as the:

One prediction of the median-voter model is that during elections, candidates will tend to become "centrists".

In thinking about the "principal-agent problem" in a democratic government, we assign the role of "principal" to the government.

Lobbying actions that seek government legislation to provide tax breaks to specific corporations would be an example of:

The so-called collective action problem refers to the:

Political logrolling always produces economically inefficient outcomes.

If the government implements regulations and policies in the economy, it tends to replace the function of the "invisible hand."

In the median-voter model, half the voters have stronger or more positive preferences than the median voter, while half of the voters have weaker or more negative preferences.

Economic analysis would focus on the size of the government, in order to assess whether or not it fosters economic efficiency.

To prevent monetary policy from becoming highly politicized, many countries have:

The term government failure refers to the:

Which statement best describes a special-interest issue?

The government would be running a budget surplus if:

Deregulation can solve the problem of regulatory capture and increase economic efficiency:

"Unfunded liability" refers to a government commitment to: