Question 1

Which of the following statements is a public choice economist most likely to agree with?

Accepted Answer

A)  People who work for the federal government are naturally lazy,whereas people who work for private firms are naturally hard working. 
B)  Good government comes from good people,bad government comes from bad people. 
C)  Change the institutional arrangements,and you will change behavior. 
D)  Bad people naturally gravitate toward a career in politics. 
E)  Good people naturally gravitate toward a career in politics. 
A)  People who work for the federal government are naturally lazy,whereas people who work for private firms are naturally hard working. 
B)  Good government comes from good people,bad government comes from bad people. 
C)  Change the institutional arrangements,and you will change behavior. 
D)  Bad people naturally gravitate toward a career in politics. 
E)  Good people naturally gravitate toward a career in politics.

Question 2

If it is assumed that people vote for the candidate who comes closer to matching their own views,to win votes in a two-person race

Accepted Answer

A)  one candidate will move to the far right of the political spectrum while the other moves to the far left. 
B)  one candidate will move between the middle and far right end of the political spectrum while the other moves between the middle and the far left end. 
C)  both candidates will move to the far right end of the political spectrum. 
D)  both candidates will move to the far left end of the political spectrum. 
E)  both candidates will move toward the middle of the political spectrum. 
A)  one candidate will move to the far right of the political spectrum while the other moves to the far left. 
B)  one candidate will move between the middle and far right end of the political spectrum while the other moves between the middle and the far left end. 
C)  both candidates will move to the far right end of the political spectrum. 
D)  both candidates will move to the far left end of the political spectrum. 
E)  both candidates will move toward the middle of the political spectrum.

Question 3

Special interest groups are usually

Accepted Answer

A)  well informed on all political issues. 
B)  well informed on all economic issues. 
C)  well informed on issues of interest to them. 
D)  not well informed on any issues,but appear to be. 
A)  well informed on all political issues. 
B)  well informed on all economic issues. 
C)  well informed on issues of interest to them. 
D)  not well informed on any issues,but appear to be.

Question 4

A public choice theorist believes that

Accepted Answer

A)  men and women in the market sector are fundamentally different people than men and women in the public sector. 
B)  government is likely to be composed of better people than the market sector. 
C)  high fixed costs in government influence the behavior of government workers. 
D)  government workers are generally lazy. 
E)  none of the above 
A)  men and women in the market sector are fundamentally different people than men and women in the public sector. 
B)  government is likely to be composed of better people than the market sector. 
C)  high fixed costs in government influence the behavior of government workers. 
D)  government workers are generally lazy. 
E)  none of the above

Question 5

Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because

Accepted Answer

A)  of apathy. 
B)  of ignorance. 
C)  of laziness. 
D)  they believe the benefits of becoming informed are greater than the costs. 
E)  they believe the benefits of becoming informed are less than the costs. 
A)  of apathy. 
B)  of ignorance. 
C)  of laziness. 
D)  they believe the benefits of becoming informed are greater than the costs. 
E)  they believe the benefits of becoming informed are less than the costs.

Question 6

The answer is: "rational ignorance." What is the question?

Accepted Answer

A)  Why do special interest groups lobby politicians? 
B)  What causes a candidate in a two-person political race to take polls? 
C)  What explains why voters often know very little about the candidates and the issues? 
D)  What motivates the free rider? 
A)  Why do special interest groups lobby politicians? 
B)  What causes a candidate in a two-person political race to take polls? 
C)  What explains why voters often know very little about the candidates and the issues? 
D)  What motivates the free rider?

Question 7

The process whereby votes are exchanged to gain support for legislation is referred to as

Accepted Answer

A)  logrolling. 
B)  rational ignorance. 
C)  simple majority voting. 
D)  special interest voting. 
E)  a and d 
A)  logrolling. 
B)  rational ignorance. 
C)  simple majority voting. 
D)  special interest voting. 
E)  a and d

Question 8

Political candidates in a two-person race prefer to be viewed as occupying the center of the political distribution because

Accepted Answer

A)  occupying the center is a sign of being a leader. 
B)  political candidates usually prefer to maintain the status quo and the center is the status quo. 
C)  the electorate is largely in the "wings" (extreme ends)of the political distribution. 
D)  whoever comes closer to the center usually wins the election. 
A)  occupying the center is a sign of being a leader. 
B)  political candidates usually prefer to maintain the status quo and the center is the status quo. 
C)  the electorate is largely in the "wings" (extreme ends)of the political distribution. 
D)  whoever comes closer to the center usually wins the election.

Question 9

Simple majority rule will almost always generate efficient outcomes.

Accepted Answer

A) True 
 B)False

Question 10

Special interest groups are subsets of __________ that hold (usually)intense preferences for or against a particular government service,activity,or policy.

Accepted Answer

A)  the general population 
B)  bureaucrats 
C)  elected officials 
D)  candidates for political office 
E)  all of the above 
A)  the general population 
B)  bureaucrats 
C)  elected officials 
D)  candidates for political office 
E)  all of the above

Question 11

Public choice theory predicts candidates will

Accepted Answer

A)  speak in specific instead of general terms. 
B)  modify their positions to become more like their opponent,if polls show they are not doing as well as their opponent. 
C)  call themselves right-wingers or left-wingers,not middle-of-the-roaders. 
D)  label their opponents as too middle-of-the-road. 
E)  all of the above 
A)  speak in specific instead of general terms. 
B)  modify their positions to become more like their opponent,if polls show they are not doing as well as their opponent. 
C)  call themselves right-wingers or left-wingers,not middle-of-the-roaders. 
D)  label their opponents as too middle-of-the-road. 
E)  all of the above

Question 12

Rational ignorance exists because voters are apathetic.

Accepted Answer

A) True 
 B)False

Question 13

Constitutional economists

Accepted Answer

A)  assert that within a given set of institutions,constraints,laws and rules,outcomes might be the same no matter who is elected to office. 
B)  study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. 
C)  assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. 
D)  b and c 
E)  a and b 
A)  assert that within a given set of institutions,constraints,laws and rules,outcomes might be the same no matter who is elected to office. 
B)  study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. 
C)  assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. 
D)  b and c 
E)  a and b

Question 14

The state of choosing not to acquire information because the costs of acquiring the information are greater than the benefits is referred to as

Accepted Answer

A)  logrolling. 
B)  rational ignorance. 
C)  market failure. 
D)  government failure. 
A)  logrolling. 
B)  rational ignorance. 
C)  market failure. 
D)  government failure.

Question 15

Politicians will usually

Accepted Answer

A)  prefer to discuss means rather than ends. 
B)  prefer to discuss the issues in specific terms rather than in general terms. 
C)  not like to be perceived as either an extreme "right-winger" or an extreme "left-winger." 
D)  refer to their opponents as "middle-of-the-roaders." 
A)  prefer to discuss means rather than ends. 
B)  prefer to discuss the issues in specific terms rather than in general terms. 
C)  not like to be perceived as either an extreme "right-winger" or an extreme "left-winger." 
D)  refer to their opponents as "middle-of-the-roaders."

Question 16

Under certain circumstances,a congressional district may be a special interest group.

Accepted Answer

A) True 
 B)False

Question 17

According to public choice theory,low voter turnouts are the result of voters

Accepted Answer

A)  being apathetic. 
B)  being uninformed. 
C)  being lazy. 
D)  disliking the candidates. 
E)  calculating their costs and benefits of voting. 
A)  being apathetic. 
B)  being uninformed. 
C)  being lazy. 
D)  disliking the candidates. 
E)  calculating their costs and benefits of voting.

Question 18

Candidate A says,"Health care is too expensive in the United States.We need to do something-and quickly-to develop a better,more responsive,less expensive health care system." Candidate B,who is running against candidate A in a two-person race,says,"Health care is too expensive in the United States.We need to do something about it and quickly.I suggest that we have the federal government develop a centralized system for delivering health care in this country." If you know nothing else about the two candidates,it follows that

Accepted Answer

A)  candidate A has taken polls and candidate B has not. 
B)  candidate B has taken polls and candidate A has not. 
C)  candidate B is smarter than candidate A. 
D)  candidate B has a higher probability of winning the election than candidate A. 
E)  candidate A has a higher probability of winning the election than candidate B. 
A)  candidate A has taken polls and candidate B has not. 
B)  candidate B has taken polls and candidate A has not. 
C)  candidate B is smarter than candidate A. 
D)  candidate B has a higher probability of winning the election than candidate A. 
E)  candidate A has a higher probability of winning the election than candidate B.

Question 19

Public choice is concerned with decision making by

Accepted Answer

A)  consumers. 
B)  businesses. 
C)  government. 
D)  foreigners. 
E)  consumers and businesses. 
A)  consumers. 
B)  businesses. 
C)  government. 
D)  foreigners. 
E)  consumers and businesses.

Question 20

Political candidates running for the same office tend to voice

Accepted Answer

A)  the same views on how things should be accomplished so that one candidate does not gain an advantage over the other. 
B)  the same views on how things should be accomplished,simply because there usually is no difference between their views. 
C)  quite different views on how things should be accomplished so that voters will see that one approach is better than another. 
D)  the same views on what things should be accomplished,but not speak specifically on how things should be accomplished. 
A)  the same views on how things should be accomplished so that one candidate does not gain an advantage over the other. 
B)  the same views on how things should be accomplished,simply because there usually is no difference between their views. 
C)  quite different views on how things should be accomplished so that voters will see that one approach is better than another. 
D)  the same views on what things should be accomplished,but not speak specifically on how things should be accomplished.

Exam 19: Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

Which of the following statements is a public choice economist most likely to agree with?

If it is assumed that people vote for the candidate who comes closer to matching their own views,to win votes in a two-person race

Special interest groups are usually

A public choice theorist believes that

Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because

The answer is: "rational ignorance." What is the question?

The process whereby votes are exchanged to gain support for legislation is referred to as

Political candidates in a two-person race prefer to be viewed as occupying the center of the political distribution because

Simple majority rule will almost always generate efficient outcomes.

Special interest groups are subsets of __________ that hold (usually)intense preferences for or against a particular government service,activity,or policy.

Public choice theory predicts candidates will

Rational ignorance exists because voters are apathetic.

Constitutional economists

The state of choosing not to acquire information because the costs of acquiring the information are greater than the benefits is referred to as

Politicians will usually

Under certain circumstances,a congressional district may be a special interest group.

According to public choice theory,low voter turnouts are the result of voters

Public choice is concerned with decision making by

Political candidates running for the same office tend to voice

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

International Trade

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The Economic Case for and Against Government: Five Topics Considered

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