Question 1

Exhibit 32-4  
-Refer to Exhibit 32-4.At the market equilibrium price of the good,consumers' surplus is the area

Accepted Answer

A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above 
A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above

Question 2

Public choice is concerned with

Accepted Answer

A) relative prices. 
B) government decision making. 
C) marketing techniques. 
D) consumer surveying. 
A) relative prices. 
B) government decision making. 
C) marketing techniques. 
D) consumer surveying.

Question 3

Three persons,A,B,and C,will use a simple majority vote to determine whether some good will be purchased.Each person's "tax share" of the purchase price of the good will be $25.Person A receives $30 worth of benefits from the good,person B receives $26 worth of benefits from the good,and person C receives $2 worth of benefits from the good.It follows that __________ person(s)will vote for the good,__________ person(s)will vote against it,and that the outcome is __________.

Accepted Answer

A) one;two;inefficient 
B) two;one;efficient 
C) one;two;efficient 
D) two;one;inefficient 
A) one;two;inefficient 
B) two;one;efficient 
C) one;two;efficient 
D) two;one;inefficient

Question 4

Logrolling is the exchange of votes to gain support for legislation.

Accepted Answer

A) True 
 B)False

Question 5

Why would a candidate for political office speak in general instead of specific terms?

Accepted Answer

A) Because he or she believes voters want to hear generalities,not specifics. 
B) Because he or she believes voters are too busy to listen to specifics. 
C) Because he or she believes that specifics are too likely to label him or her as a member of an extreme-wing,and politically this would be undesirable. 
D) Because it is cheaper to get the message out if it is worded in general instead of specific terms. 
A) Because he or she believes voters want to hear generalities,not specifics. 
B) Because he or she believes voters are too busy to listen to specifics. 
C) Because he or she believes that specifics are too likely to label him or her as a member of an extreme-wing,and politically this would be undesirable. 
D) Because it is cheaper to get the message out if it is worded in general instead of specific terms.

Question 6

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 7

If it is assumed that people vote for the candidate who comes closer to matching their own views,then

Accepted Answer

A) candidates will label themselves as right-wingers. 
B) candidates will label themselves as left-wingers. 
C) candidates will label their opponents as middle-of-the-roaders. 
D) candidates will discuss the means to accomplishing ends. 
E) a candidate who is trailing in the polls will modify his or her position to become more like his or her opponent. 
A) candidates will label themselves as right-wingers. 
B) candidates will label themselves as left-wingers. 
C) candidates will label their opponents as middle-of-the-roaders. 
D) candidates will discuss the means to accomplishing ends. 
E) a candidate who is trailing in the polls will modify his or her position to become more like his or her opponent.

Question 8

Public choice deals with

Accepted Answer

A) negative and positive externalities. 
B) public-sector decision making. 
C) how people choose between several mutually exclusive options. 
D) bond,stock,and money markets. 
E) none of the above 
A) negative and positive externalities. 
B) public-sector decision making. 
C) how people choose between several mutually exclusive options. 
D) bond,stock,and money markets. 
E) none of the above

Question 9

Suppose U.S.peanut butter producers are facing increased foreign competition.Which argument is least likely to be used by the U.S.firms' lobbyists to urge legislation to restrict imports of peanut butter?

Accepted Answer

A) Peanut butter is important in military rations,so we cannot risk losing our supply of it. 
B) Foreign peanut butter is made by virtual slave labor,working in horrible conditions. 
C) Economic profits of the U.S.firms are already at a very low level. 
D) Thousands of U.S.peanut farmers face hard times without this protection against imports. 
A) Peanut butter is important in military rations,so we cannot risk losing our supply of it. 
B) Foreign peanut butter is made by virtual slave labor,working in horrible conditions. 
C) Economic profits of the U.S.firms are already at a very low level. 
D) Thousands of U.S.peanut farmers face hard times without this protection against imports.

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

There is evidence that __________ were the main lobbyists behind passage of the Factory Acts which put restrictions on women and children working in early 19th century England.

Accepted Answer

A) male workers 
B) female workers 
C) child-care advocates 
D) factory owners 
A) male workers 
B) female workers 
C) child-care advocates 
D) factory owners

Question 12

A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to

Accepted Answer

A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. 
B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. 
C) speak in specific terms about what needs to be done. 
D) a and c 
E) b and c 
A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. 
B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. 
C) speak in specific terms about what needs to be done. 
D) a and c 
E) b and c

Question 13

People may vote in a presidential election if

Accepted Answer

A) they feel it is their civic duty to vote. 
B) they believe their vote will matter. 
C) the costs of doing so are greater than the benefits received from voting. 
D) a or b 
E) a,b,or c 
A) they feel it is their civic duty to vote. 
B) they believe their vote will matter. 
C) the costs of doing so are greater than the benefits received from voting. 
D) a or b 
E) a,b,or c

Question 14

A political candidate running in a two-person race is likely to occupy

Accepted Answer

A) an extreme end of the political spectrum and hope that his or her opponent will gravitate toward the middle so that he or she can then claim that his or her opponent has flip-flopped. 
B) the middle of the political spectrum and label his or her opponent as an extremist (either liberal or conservative). 
C) a position somewhere between the middle of the political spectrum and an extreme end so that he or she can move either way shortly before the election. 
D) one extreme end of the political spectrum early in the race and the other extreme end near the end of the race. 
A) an extreme end of the political spectrum and hope that his or her opponent will gravitate toward the middle so that he or she can then claim that his or her opponent has flip-flopped. 
B) the middle of the political spectrum and label his or her opponent as an extremist (either liberal or conservative). 
C) a position somewhere between the middle of the political spectrum and an extreme end so that he or she can move either way shortly before the election. 
D) one extreme end of the political spectrum early in the race and the other extreme end near the end of the race.

Question 15

In a political election,a candidate whose positions are on the left will tend to be labeled __________ by his or her opponent.

Accepted Answer

A) too far to the left 
B) too far to the right 
C) too much of a middle-of-the-roader 
D) an unknown quantity 
A) too far to the left 
B) too far to the right 
C) too much of a middle-of-the-roader 
D) an unknown quantity

Question 16

Exhibit 32-4  
-Refer to Exhibit 32-4.At the market equilibrium price of the good,producers' surplus is the area

Accepted Answer

A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above 
A) D + E 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) none of the above

Question 17

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 18

A voter will tend to be more informed if the issue in question

Accepted Answer

A) affects everyone very little. 
B) is complicated and difficult to understand. 
C) has an intense and a direct effect on the voter. 
D) is of special interest to a small group to which the voter does not belong. 
A) affects everyone very little. 
B) is complicated and difficult to understand. 
C) has an intense and a direct effect on the voter. 
D) is of special interest to a small group to which the voter does not belong.

Question 19

One implication of the median voter model is that a candidate is likely to label himself __________ and his or her opponent as __________.

Accepted Answer

A) moderate;too far right or too far left (whichever makes more sense) 
B) a member of one of the political wings;moderate or mainstream 
C) as a member of the political right;moderate 
D) as a member of the political left;moderate 
E) none of the above 
A) moderate;too far right or too far left (whichever makes more sense) 
B) a member of one of the political wings;moderate or mainstream 
C) as a member of the political right;moderate 
D) as a member of the political left;moderate 
E) none of the above

Question 20

Suppose Congress passes a law that states that the federal government will pay $100 to any American citizen who can pass a (reasonably simple)current political events test.It follows that

Accepted Answer

A) this raises the benefits of being rationally ignorant. 
B) this raises the benefits of becoming informed and therefore will lower the degree of rational ignorance in society. 
C) this raises the costs of being rationally ignorant. 
D) b and c 
E) none of the above 
A) this raises the benefits of being rationally ignorant. 
B) this raises the benefits of becoming informed and therefore will lower the degree of rational ignorance in society. 
C) this raises the costs of being rationally ignorant. 
D) b and c 
E) none of the above

Exam 19: Debates in Macroeconomics Over the Role and Effects of Government

Exhibit 32-4 -Refer to Exhibit 32-4.At the market equilibrium price of the good,consumers' surplus is the area

Public choice is concerned with

Logrolling is the exchange of votes to gain support for legislation.

Why would a candidate for political office speak in general instead of specific terms?

Politicians will usually

If it is assumed that people vote for the candidate who comes closer to matching their own views,then

Public choice deals with

Suppose U.S.peanut butter producers are facing increased foreign competition.Which argument is least likely to be used by the U.S.firms' lobbyists to urge legislation to restrict imports of peanut butter?

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

There is evidence that __________ were the main lobbyists behind passage of the Factory Acts which put restrictions on women and children working in early 19th century England.

A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to

People may vote in a presidential election if

A political candidate running in a two-person race is likely to occupy

In a political election,a candidate whose positions are on the left will tend to be labeled __________ by his or her opponent.

Exhibit 32-4 -Refer to Exhibit 32-4.At the market equilibrium price of the good,producers' surplus is the area

Public choice theory predicts candidates will

A voter will tend to be more informed if the issue in question

One implication of the median voter model is that a candidate is likely to label himself __________ and his or her opponent as __________.

Suppose Congress passes a law that states that the federal government will pay $100 to any American citizen who can pass a (reasonably simple)current political events test.It follows that

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Public Choice and Special-Interest-Group Politics

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

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Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

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One implication of the median voter model is that a candidate is likely to label himself and his or her opponent as .