Question 1

Public choice economists often explain low voter turnouts in terms of

Accepted Answer

A) dissatisfaction of many voters with the limited choice of candidates. 
B) lack of civic responsibility of the electorate. 
C) net costs of voting that many voters perceive. 
D) rational ignorance of many voters of the actual date of the elections. 
A) dissatisfaction of many voters with the limited choice of candidates. 
B) lack of civic responsibility of the electorate. 
C) net costs of voting that many voters perceive. 
D) rational ignorance of many voters of the actual date of the elections.

Question 2

Ceteris paribus,economics predicts that voter turnout will be higher

Accepted Answer

A) the smaller the number of eligible voters. 
B) the larger the number of eligible voters. 
C) the easier it is to get to the polls on election day. 
D) a and c 
E) b and c 
A) the smaller the number of eligible voters. 
B) the larger the number of eligible voters. 
C) the easier it is to get to the polls on election day. 
D) a and c 
E) b and c

Question 3

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 4

Two candidates,Smith and Jones,are running for the same political office.Last night they were in a debate.It is generally accepted that Smith is perceived more to the left after the debate than before the debate.This is bad news for Jones if before the debate Smith was perceived

Accepted Answer

A) too far right. 
B) too far left. 
C) as being in the middle of the political spectrum. 
D) b or c 
E) none of the above 
A) too far right. 
B) too far left. 
C) as being in the middle of the political spectrum. 
D) b or c 
E) none of the above

Question 5

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 6

Congressperson A: "If you approve that new water treatment plant in my district,I'll vote to keep the Air Force base open in your district." Congressperson B: "It's a deal." This is an example of

Accepted Answer

A) logrolling. 
B) lobbying. 
C) median voting. 
D) logtumbling. 
A) logrolling. 
B) lobbying. 
C) median voting. 
D) logtumbling.

Question 7

Exhibit 32-4  
-Refer to Exhibit 32-4.Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P2.The loss of consumers' surplus that occurs due to the price floor is

Accepted Answer

A) B + C 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A 
A) B + C 
B) A + B + C + D + E 
C) A + B + C 
D) C + E 
E) A

Question 8

Simple majority voting sometimes leads to projects being undertaken whose costs are greater than the benefits.How is this possible?

Accepted Answer

A) It is not possible,unless the voting results are rigged. 
B) Because voters have no way to express the intensity of their preferences. 
C) Because many voters choose to be rationally ignorant. 
D) Because free riding is pervasive. 
A) It is not possible,unless the voting results are rigged. 
B) Because voters have no way to express the intensity of their preferences. 
C) Because many voters choose to be rationally ignorant. 
D) Because free riding is pervasive.

Question 9

When it comes to voting in a presidential election,we would expect,ceteris paribus,

Accepted Answer

A) a lower percentage of eligible voters will vote if the weather is bad and this makes it harder to get to the polls on election day (than would have voted if the weather was good). 
B) a higher percentage of eligible voters will vote if the weather is bad on election day (than would have voted if the weather was good). 
C) many people to vote who are rationally ignorant. 
D) a higher voter turnout in the North than in the South. 
E) a and c 
A) a lower percentage of eligible voters will vote if the weather is bad and this makes it harder to get to the polls on election day (than would have voted if the weather was good). 
B) a higher percentage of eligible voters will vote if the weather is bad on election day (than would have voted if the weather was good). 
C) many people to vote who are rationally ignorant. 
D) a higher voter turnout in the North than in the South. 
E) a and c

Question 10

Most voters choose not to be informed about political and governmental issues because they are not smart enough to really understand the issues.

Accepted Answer

A) True 
 B)False

Question 11

People will be more likely to vote if they believe that their vote will determine the outcome of the election.

Accepted Answer

A) True 
 B)False

Question 12

Why do many prospective voters choose to watch sports on television rather than watching the news or political roundtables? In your answer,be sure to mention the role played by rational ignorance.

Accepted Answer

Rational ignorance is the state of not a

Question 13

Political candidates tend to identify themselves as being "middle-of-the-roaders",while they tend to label their opponents as a member of the political fringe.

Accepted Answer

A) True 
 B)False

Question 14

"Logrolling" is

Accepted Answer

A) the exchange of votes to gain support for legislation. 
B) pressure that special interest groups place on politicians. 
C) when politicians refuse to go into detail and speak only in generalities. 
D) the process by which government agencies make sure they spend their allotted annual budget. 
A) the exchange of votes to gain support for legislation. 
B) pressure that special interest groups place on politicians. 
C) when politicians refuse to go into detail and speak only in generalities. 
D) the process by which government agencies make sure they spend their allotted annual budget.

Question 15

According to public choice theory,low voter turnouts may be the result of cost-benefit calculations on the part of voters.

Accepted Answer

A) True 
 B)False

Question 16

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 17

In a simple majority vote on a public project,

Accepted Answer

A) the project will never be undertaken if the costs exceed the benefits. 
B) the project may be undertaken even though the total costs exceed the total benefits. 
C) the intensity of individual preferences is taken into account. 
D) the project will always be undertaken if the total benefits exceed the total costs. 
A) the project will never be undertaken if the costs exceed the benefits. 
B) the project may be undertaken even though the total costs exceed the total benefits. 
C) the intensity of individual preferences is taken into account. 
D) the project will always be undertaken if the total benefits exceed the total costs.

Question 18

The model predicting victory in a two-person race for the candidate closer to occupying the center of the voter distribution is built on the assumption that

Accepted Answer

A) people always vote for the Democratic candidate if they are Democrats and for the Republican candidate if they are Republicans. 
B) people vote for the candidate who comes closer to matching their own views. 
C) most people don't vote unless the election is predicted to be close. 
D) none of the above 
A) people always vote for the Democratic candidate if they are Democrats and for the Republican candidate if they are Republicans. 
B) people vote for the candidate who comes closer to matching their own views. 
C) most people don't vote unless the election is predicted to be close. 
D) none of the above

Question 19

A person will become informed on a political issue if

Accepted Answer

A) it is considered an important issue to society at large. 
B) he perceives the benefits of becoming informed as greater than the costs of becoming informed. 
C) it is regularly discussed on television news shows. 
D) it is regularly written about in the daily newspapers. 
E) none of the above 
A) it is considered an important issue to society at large. 
B) he perceives the benefits of becoming informed as greater than the costs of becoming informed. 
C) it is regularly discussed on television news shows. 
D) it is regularly written about in the daily newspapers. 
E) none of the above

Question 20

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

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

Public choice economists often explain low voter turnouts in terms of

Ceteris paribus,economics predicts that voter turnout will be higher

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

Two candidates,Smith and Jones,are running for the same political office.Last night they were in a debate.It is generally accepted that Smith is perceived more to the left after the debate than before the debate.This is bad news for Jones if before the debate Smith was perceived

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

Congressperson A: "If you approve that new water treatment plant in my district,I'll vote to keep the Air Force base open in your district." Congressperson B: "It's a deal." This is an example of

Exhibit 32-4 -Refer to Exhibit 32-4.Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P2.The loss of consumers' surplus that occurs due to the price floor is

Simple majority voting sometimes leads to projects being undertaken whose costs are greater than the benefits.How is this possible?

When it comes to voting in a presidential election,we would expect,ceteris paribus,

Most voters choose not to be informed about political and governmental issues because they are not smart enough to really understand the issues.

People will be more likely to vote if they believe that their vote will determine the outcome of the election.

Why do many prospective voters choose to watch sports on television rather than watching the news or political roundtables? In your answer,be sure to mention the role played by rational ignorance.

Political candidates tend to identify themselves as being "middle-of-the-roaders",while they tend to label their opponents as a member of the political fringe.

"Logrolling" is

According to public choice theory,low voter turnouts may be the result of cost-benefit calculations on the part of voters.

A public choice theorist believes that

In a simple majority vote on a public project,

The model predicting victory in a two-person race for the candidate closer to occupying the center of the voter distribution is built on the assumption that

A person will become informed on a political issue if

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

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

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Macroeconomic Measurements, part I: Prices and Unemployment

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

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Exhibit 32-4 -Refer to Exhibit 32-4.Suppose that producers of this good engage in rent seeking which results in the government imposing a price floor of P₂.The loss of consumers' surplus that occurs due to the price floor is