Question 1

Why is public food distribution better in election and pre- election years?

Accepted Answer

A)  Higher political competition always ensures better food production in farming areas. 
B)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
C)  There is a lag of about four years between refurbishment of most food production systems. 
D)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems. 
A)  Higher political competition always ensures better food production in farming areas. 
B)  The threat of failure to get reelected spurs government into providing better food distribution systems. 
C)  There is a lag of about four years between refurbishment of most food production systems. 
D)  Increased competition between political parties leads voters to educate themselves on the availability of such distribution systems.

Question 2

Why are incentives so important in the decision to remain rationally ignorant about something?

Accepted Answer

Consumers, or people in general, will en

Question 3

Evidence suggests that voters will vote for a political party based on the economic conditions that prevail in the year of the election. This behavior is known as:

Accepted Answer

A)  economic dependence. 
B)  political response. 
C)  rational ignorance. 
D)  voter myopia. 
A)  economic dependence. 
B)  political response. 
C)  rational ignorance. 
D)  voter myopia.

Question 4

Democracy typically brings about more efficient outcomes because:

Accepted Answer

A)  democracies create a demand for wealth. 
B)  democracies are common practice in developed countries. 
C)  citizens in democracies are rationally ignorant. 
D)  citizens in democracies are better informed and have power to vote. 
A)  democracies create a demand for wealth. 
B)  democracies are common practice in developed countries. 
C)  citizens in democracies are rationally ignorant. 
D)  citizens in democracies are better informed and have power to vote.

Question 5

Most voters will tend to be concerned with:

Accepted Answer

A)  most issues since most issues have some impact, however slight, on each citizen. 
B)  most issues since information on most issues can be obtained at a low cost. 
C)  only a few special issues (those that have the most impact on the voters' personal welfare). 
D)  the views of a particular political candidate on all issues. 
A)  most issues since most issues have some impact, however slight, on each citizen. 
B)  most issues since information on most issues can be obtained at a low cost. 
C)  only a few special issues (those that have the most impact on the voters' personal welfare). 
D)  the views of a particular political candidate on all issues.

Question 6

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

Accepted Answer

A)  more political competition. 
B)  more newspapers. 
C)  either more political competition or more newspapers. 
D)  both more political competition and more newspapers. 
A)  more political competition. 
B)  more newspapers. 
C)  either more political competition or more newspapers. 
D)  both more political competition and more newspapers.

Question 7

In which of the following decisions is a person likely to be rationally ignorant?

Accepted Answer

A)  deciding on which car to buy 
B)  deciding on where to live 
C)  deciding on which mayoral candidate to vote for 
D)  deciding on which television show to watch 
A)  deciding on which car to buy 
B)  deciding on where to live 
C)  deciding on which mayoral candidate to vote for 
D)  deciding on which television show to watch

Question 8

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

Accepted Answer

A)  defense 
B)  welfare 
C)  foreign aid 
D)  health care 
A)  defense 
B)  welfare 
C)  foreign aid 
D)  health care

Question 9

Many people are concerned about voter apathy. Use economics to explain why there is a lack of interest in voting and politics.

Accepted Answer

Voters have an incentive to be ignorant.

Question 10

The theory of the median voter may not work if: I. voters do not vote. II. voters do not vote for the policy closest to their own positions. III. there is only a single dimension over which the voting occurs.

Accepted Answer

A)  I only 
B)  II only 
C)  I and II only 
D)  I, II, and III 
A)  I only 
B)  II only 
C)  I and II only 
D)  I, II, and III

Question 11

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 12

The theory of the median voter may not work if: I. voters do not vote. II. voters do not vote for the policy closest to their own positions. III. there are multiple dimensions over which the voting occurs.

Accepted Answer

A)  I only 
B)  II only 
C)  I and II only 
D)  I, II, and III 
A)  I only 
B)  II only 
C)  I and II only 
D)  I, II, and III

Question 13

Explain the formula for political success. Provide an example.

Accepted Answer

Diffused costs and concentrated benefits

Question 14

If voters care about two issues such as taxes and war, then politicians:

Accepted Answer

A)  will form a stable policy on these issues. 
B)  can pose a policy that will never lose against another policy. 
C)  must assume that there is no median voter. 
D)  may never converge on a stable outcome. 
A)  will form a stable policy on these issues. 
B)  can pose a policy that will never lose against another policy. 
C)  must assume that there is no median voter. 
D)  may never converge on a stable outcome.

Question 15

Which of the following best explains the term rational ignorance?

Accepted Answer

A)  It is the decision to search for and acquire information only if there is enough time. 
B)  It is the decision to stay uninformed on certain topics because of the prohibitive cost of gathering information. 
C)  It is the decision to ignore free information that is vital in making the correct decision. 
D)  It is the rational weighing of costs versus benefits. 
A)  It is the decision to search for and acquire information only if there is enough time. 
B)  It is the decision to stay uninformed on certain topics because of the prohibitive cost of gathering information. 
C)  It is the decision to ignore free information that is vital in making the correct decision. 
D)  It is the rational weighing of costs versus benefits.

Question 16

Over the past one hundred 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 17

Government ownership of the media:

Accepted Answer

A)  is uncommon in African countries. 
B)  causes an even greater degree of rational ignorance than private ownership. 
C)  reduces rational ignorance because governments usually require a greater number of news broadcasts. 
D)  decreases the effectiveness of special interest groups. 
A)  is uncommon in African countries. 
B)  causes an even greater degree of rational ignorance than private ownership. 
C)  reduces rational ignorance because governments usually require a greater number of news broadcasts. 
D)  decreases the effectiveness of special interest groups.

Question 18

The ―Bridge to Nowhere‖:

Accepted Answer

A)  cost the local community about $35,000 per person. 
B)  is a special case in which special interests can maximize society's well-being. 
C)  would have created large external costs, an example of the inefficient projects proposed by self-interested politicians. 
D)  connects Cuba to Key West, FloridD. 
A)  cost the local community about $35,000 per person. 
B)  is a special case in which special interests can maximize society's well-being. 
C)  would have created large external costs, an example of the inefficient projects proposed by self-interested politicians. 
D)  connects Cuba to Key West, FloridD.

Question 19

Which of the following conditions best predicts when the incumbent party will NOT win the presidential election?

Accepted Answer

A)  personal disposable income is growing 
B)  the inflation rate is low 
C)  the unemployment rate is low 
D)  the incumbent party has been in power for too many terms in a row 
A)  personal disposable income is growing 
B)  the inflation rate is low 
C)  the unemployment rate is low 
D)  the incumbent party has been in power for too many terms in a row

Question 20

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

Accepted Answer

A)  Social Security 
B)  welfare 
C)  foreign aid 
D)  health care 
A)  Social Security 
B)  welfare 
C)  foreign aid 
D)  health care

Exam 19: Public Goods and the Tragedy of the Commons

Why is public food distribution better in election and pre- election years?

Why are incentives so important in the decision to remain rationally ignorant about something?

Evidence suggests that voters will vote for a political party based on the economic conditions that prevail in the year of the election. This behavior is known as:

Democracy typically brings about more efficient outcomes because:

Most voters will tend to be concerned with:

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

In which of the following decisions is a person likely to be rationally ignorant?

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

Many people are concerned about voter apathy. Use economics to explain why there is a lack of interest in voting and politics.

The theory of the median voter may not work if: I. voters do not vote. II. voters do not vote for the policy closest to their own positions. III. there is only a single dimension over which the voting occurs.

Voter decisions seem to depend greatly on:

The theory of the median voter may not work if: I. voters do not vote. II. voters do not vote for the policy closest to their own positions. III. there are multiple dimensions over which the voting occurs.

Explain the formula for political success. Provide an example.

If voters care about two issues such as taxes and war, then politicians:

Which of the following best explains the term rational ignorance?

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

Government ownership of the media:

The ―Bridge to Nowhere‖:

Which of the following conditions best predicts when the incumbent party will NOT win the presidential election?

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

The Big Ideas in Economics

The Power of Trade and Comparative Advantage

Business Fluctuations: Aggregate Demand and Supply

Equilibrium: How Supply and Demand Determine Prices

Elasticity and Its Applications

Taxes and Subsidies

The Price System: Signals, Speculation, and Prediction

Price Ceilings and Floors

International Trade

Externalities: When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination and Pricing Strategy

Oligopoly and Game Theory

Competing for Monopoly: the Economics of Network Goods

Monopolistic Competition and Advertising

Labor Markets

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Asymmetric Information: Moral Hazard and Adverse Selection

Consumer Choice

Gdp and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth, Capital Accumulation, and the Economics of Ideas: Catching up Vs the Cutting Edge

Saving, Investment, and the Financial System

Supply and Demand

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Transmission and Amplification Mechanisms

The Federal Reserve System and Open Market Operations

Monetary Policy

The Federal Budget: Taxes and Spending

Filters

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