Exam 19: Public Goods and the Tragedy of the Commons

What are some reasons why markets are not free and unregulated?

Which of the following statements is FALSE?

________ groups tend to favor more efficient policies.

If consumers are hurt by quotas and tariffs such as the sugar quota, why do they remain rationally ignorant about these policies?

The incumbent party will most likely get reelected when economic conditions are worsening in an economy.

When benefits are concentrated and costs are diffused:

One reason for the good record of democracies on economic growth is that:

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.

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

Evidence suggests that voters are myopic, meaning they are responsive to economic conditions:

Explain why candidates with extreme views do not tend to get elected. What economic theorem is this most closely tied to?

One way to achieve political success is to:

Reference: Ref 19-3 (Figure: Economic Freedom and Living Standards) Refer to the figure. Based on the data in this chart, the country with the lowest level of economic freedom is:

The most important assumption of the median voter theorem is that:

When benefits are concentrated and costs are diffused, resources often get wasted on projects with high benefits and low costs.

Politicians can often use the concept of rational ignorance on the part of voters to their advantage.

Which of the following theories works to explain which voters will get their way in a democratic election?

Why are special interest groups so powerful?

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

Data for the United States show that the incumbent party tends to win the election if: I. personal disposable income is growing. II. the inflation rate is low. III. the political party has not been in power for too many continuous terms.