Deck 18: Public Economy

Question 1

Since the 1980s, national elections in Germany, Spain and France have all recorded _______
Than was recorded for presidential elections in the United States.

A) lower voter participation
B) higher voter participation
C) a 50% higher number of votes cast
D) a 50% lower number of votes cast

Answer 1

higher voter participation

Question 2

Why are politicians more likely to focus their political actions on individuals with higher incomes and higher levels of education?

A) research shows this group has greater informed voter participation
B) research shows this group has a higher percentage of conservatives
C) research shows this group has a higher percentage of liberals
D) research shows members of this group have employment concerns

Answer 2

research shows this group has greater informed voter participation

Question 3

Which of the following is not one of the proposals that have been offered to encourage greater voter turnout?

A) making it easier to register to vote
B) keeping the polls open for more hours
C) moving election day to a weekend
D) tax incentives for active voters

Answer 3

tax incentives for active voters

Question 4

In presidential elections over the last few decades, about _______ of voting-age citizens actually turned out to cast their votes.

A) 55-65%
B) 45-50%
C) 30-45%
D) 70-75%

Question 5

U.S. presidential elections over the last few decades have typically involved _______ of voting-age citizens actually participating by _______ to vote.

A) 75-80%; joining a political party
B) 65-75%; registering
C) 55-65%; exercising their right
D) 40-55%; getting out

Question 6

In _______, when there is no president race, the voter turnout is typically _______.

A) Senate elections; more than half of eligible voters
B) Congressional elections; more than half of eligible voters
C) Congressional elections; less than half of the eligible voters
D) Senate elections; less than half of eligible voters

Question 7

The political systems in most Latin American nations differ from the political system in the United States because most Latin American nations

A) have laws that require voting.
B) have laws requiring voters to cast informed votes.
C) are not recognized as democracies ruled by electoral majorities.
D) are ruled by dictatorships.

Question 8

In the United States, which of the following would be most likely to participate in an election by informing themselves and casting their vote?

A) single people
B) newcomers
C) the employed
D) the socially isolated

Question 9

In Canada, voters typically choose between three or more candidates in an election, which can lead to situations where

A) actors in the political system are presumed to follow their own self-interest.
B) there will be a disproportionately large impact on conservative politicians.
C) there will be a disproportionately large impact on liberal politicians.
D) it becomes impossible for the majority to decide who it prefers.

Question 10

The problem of special interests in politics can be related to an economic policy problem called _______.

A) pork-barrel spending
B) regulatory capture
C) logrolling
D) imperfect competition

Question 11

The absence of which of the following best explains why government agencies are slower to correct mistakes than private firms.

A) imperfect information
B) discrimination in wealth distribution
C) monopoly over the economy
D) competition or a threat of new entry

Question 12

Pork-barrel spending can be thought of as another case where democracy is challenged by _______
And _______.

A) specials interest groups; disconnected voters
B) concentrated benefits; widely dispersed costs
C) conventional wisdom; lawyers and judges
D) higher income earners; low-educated individuals

Question 13

In some instances where voters have more than two choices in a democratic election, the principle that the _______ will decide the outcome may no longer make logical sense.

A) majority of voters
B) under-educated voters
C) economically challenged
D) eligible voters

Question 14

The theory of _______ holds that people won't bother incurring the costs of becoming informed and voting, because they know that their vote
_______.

A) rational ignorance; won't be decisive in the election
B) imperfect competition; has little impact on election outcomes
C) inequality of incomes; won't be decisive in the election
D) democracy by majority rule; won't impact election outcomes

Question 15

Research on voting behavior in the U.S. has shown that, on average, people who are more _______
Tend to _______.

A) involved with a political party; vote more frequently
B) connected to society; vote more frequently
C) conservative; vote less frequently
D) liberal; vote less frequently

Question 16

U.S. voting statistics show that elderly citizens donate both money and time to political campaigns. In the 2012 presidential election, _______ of those over age 65 voted, while just _______ Of the remainder of the voting age population cast a ballot.

A) 75%; 68%
B) 44%; 20%
C) 70%; 49%
D) 50%; 30%

Question 17

In the U.S., why is figuring out a way of strengthening people's feeling of connectedness to society still an issue of importance?

A) it will make it easier for people to register to vote
B) keeping the polls open longer will create more jobs
C) other proposals offered have failed to substantially increase voter turnout
D) those who vote tend to be more supportive of quality public education

Question 18

Legislators who focus on local spending projects for their own district typically show a lack of sufficient concern for

A) meeting the demands of special interest groups.
B) spending in the interest of the nation as a whole.
C) law and non-market based economics.
D) the prevalence of voting cycles.

Question 19

At the time the United States was formed, mandatory voting was required in each of the following states with one exception. Which one is it?

A) Virginia
B) Maryland
C) Alabama
D) Delaware

Question 20

In a 1948 novel titled "Walden II", one of the characters states: "The chance that one man's vote will decide the issue in a national election...is less than the chance that he will be killed on his way to the polls." This statement addresses

A) why laws against pork-barrelling and logrolling cannot be legislated.
B) why the United States spends too much money on elections.
C) why the margin of victory in elections is measured in hundreds, thousands, and millions of votes.
D) why a utility-maximizing person may rationally decide not to vote or become informed about elections.

Question 21

Which of the following characteristics differentiates the private economy from government?

A) public policy with appropriate incentives
B) self-correcting mechanism
C) spending programs and unwanted results
D) moderate future behaviour

Question 22

The government is imposing an industrial pollution tax in an attempt to reduce carbon emissions. The cost of the tax to five major companies in the oil refining industry will be $50 million annually. In terms of reduced emissions, the annual benefits of the tax are valued at $10 per person. There are 125 million people directly affected by emissions from oil refineries owned by these companies. The total annual cost of this tax is _______ while the total annual benefit to society is _______.

A) $250 million; $1.25 trillion
B) $500 million; 1.5 trillion
C) $250 million; $1.5 trillion
D) $500 million; $1.25 trillion

Question 23

Political institutions play a role in allocating the _______, and economists have played an active role along with other social scientists in analyzing _______.

A) scarce resources of society; how such political institutions work
B) single political district spending; the impossibility of the majority deciding what it prefers
C) resources to pork barrel projects; the impossibility of deciding on spending limits
D) funding to 51 tuition-free colleges and universities; disadvantages of price controls

Question 24

When _______ occurs, the result will be determined by the order in which choices are presented and voted on, not by _______, because every choice is both preferred to some alternative and also not preferred to another alternative.

A) vote splitting; special interests
B) a voting cycle; majority rule
C) vote splitting; a runoff round
D) a voting cycle; a reduction in candidates

Question 25

The government has decided to impose a pollution tax on coal burning power plants in an attempt to reduce harmful emissions. The new tax will cost the 20 largest industrial carbon emitters $6 million annually. In terms of reduced emissions, the annual tax benefits are valued at
$20 per person. 100 million people are directly affected by emissions from these plants. The total annual cost of this tax is _______ , while the total annual benefit to society is _______.

A) $60 million, $2 trillion
B) $60 million, $1 trillion
C) $120 million, $1 trillion
D) $120 million, $2 trillion

Question 26

Which of the following is a reason the Supreme Court was asked to rule on various provisions and interpretations of the Bipartisan Campaign Reform Act of 2002?

A) legalized political advertising for the year leading up to an election
B) conflicts with the free speech provisions of the U.S. Constitution
C) allowed individuals to make unlimited political donations
D) allowed foreign corporations to make unlimited political donations

Question 27

Australian law may require people to vote, but mandatory voting laws are unlikely to mean that each vote cast in an election _______.

A) will matter less than it does in a free society
B) is worth the loss of freedom not to vote
C) will be an informed or a thoughtful vote
D) was cast by voters who don't care who wins

Question 28

Briefly explain why the principle that the majority of voters should decide an election outcome may not always make logical sense.

Question 29

The government wants to enact tax legislation aimed at reducing increasing discharge levels of toxins into municipal waste water systems. The annual cost of the tax to the 100 worst industrial polluters will be $5 million each. The annual benefits of the tax, in terms of reduced toxin levels in water systems, are valued at $25 per person. There are 300 million people directly affected by the 100 worst industrial polluters. The total cost of this tax is _______ while the total benefit to society is _______.

A) $125 million; $1.5 trillion
B) $125 million; $7.5 trillion
C) $500 million; $7.5 trillion
D) $500 million; $1.5 trillion

Question 30

The $5.8 billion spent on political campaigns in the United States in 2012 represents roughly _______
Of the nation's overall economy.

A) 1/10 of 1%
B) 1/15 of 1%
C) 1/20 of 1%
D) 1/25 of 1%

Question 31

A problem may arise when politicians are elected by the votes of 60% or less of the population, because these politicians may not enact

A) legislation that is focused on numerically small special interest groups.
B) economic policy in the best interests of 100% of the population.
C) public policies that fail to benefit social surplus.
D) pork-barrel legislation using logrolling.

Question 32

A practical approach to microeconomic policy will need to take a realistic view of the specific strengths and weaknesses of markets and _______.

A) rational ignorance that encourages a preference for uninformed voting
B) the difficulties that arise when electors have three or more ballet choices.
C) lobbying efforts that encourage pork-barrel spending
D) the specific strengths and weaknesses of government

Question 33

In the U.S. political arena, _______ may tend to emphasize the virtues of markets and the limitations of government, while _______ may tend to emphasize the shortcomings of markets and the need for government programs.

A) conservatives; liberals
B) politicians; economists
C) economists; politicians
D) liberals; conservatives

Question 34

In 2009, total federal and state government spending was about $5.1 trillion and the cost of choosing politicians to determine how this money would be spent amounted to roughly _______
Of government spending.

A) 1/10 of 1%
B) 1/10 of 2%
C) 1/25 of 1%
D) 1/25 0f 2%

Question 35

When the U.S. Congress begins to draft laws and regulations that attempt to reduce the harmful effects of environmental pollution, industry lobbyists will

A) study every word and comma.
B) suggest alternate wording.
C) often contribute to campaigns of legislators on key committees.
D) do all of the above in order to influence legislation in their favour.

Question 36

Economists readily admit that in settings that involve a monopoly or negative externalities, a potential role exists for _______.

A) scare resources
B) economically wise programs
C) government intervention
D) economically wise projects

Question 37

Name four countries that currently have laws that have made voting mandatory.

Question 38

Briefly describe the theory of rational ignorance.

Question 39

Briefly explain what is meant by the term "pork-barrelling."

Question 40

Which of the following is an oversimplified term that is sometimes used to describe the meaning of democracy?

A) voting cycles
B) majority opinion
C) majority rule
D) majority vote

Question 41

Provide one example to how a democratic political system probably has a bias toward those members of the society who are identifiable.

Question 42

Identify where political actions in the US are more likely to focus and provide an example.

Question 43

List three proposals that have been offered to encourage greater voter turnout in the United States.

Question 44

List the three main reasons why people in the U.S. don't vote.

Question 45

Identify and briefly discuss what research has shown regarding the voting behavior of people living in a democracy to vote.

Question 46

Briefly discuss the controversial and noncontroversial portions of the 2002 Bipartisan Campaign Reform Act that Congress passed and President George W. Bush signed into law.