Question 1

Which of the following factors weakens the case for government provision of goods and services relative to private-sector provision?

Accepted Answer

The special-interest effect refers to the influence of small, organized groups that can sway government decisions to benefit themselves at the expense of the general public, which can lead to inefficiencies and weaken the case for government provision.

Question 2

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

Accepted Answer

Externalities weaken the case for private-sector provision because they represent costs or benefits not reflected in market prices, leading to market failure. Public provision can address these externalities through regulation or direct provision.

Question 3

Is calling a voter rationally ignorant the same as calling her irrational? Explain.

Accepted Answer

The answer of Is calling a voter rationally ignorant the...

Question 4

The park in Hammerhead, Florida, built to honor the city's founding father, General Hammerhead, is starting to deteriorate. It would take about $5,000 to restore the General's statue, repair the benches, and repair the fountain, but the city budget is tight. Also, the deterioration is not that noticeable. Mayor Grouper suggests delaying the repair until after the election, three years away. City Councilwoman Halibut notes that by then the park will be dilapidated, and repairs will cost $25,000. From a public choice perspective, what is the likely outcome of this debate?

Accepted Answer

The answer of The park in Hammerhead, Florida, built to...

Question 5

Suppose we coupled the pay of Congress with the federal budget, so that for every billion dollars of deficit spending, a lawmaker's pay would be reduced $1,000. How would this affect fiscal policy?

Accepted Answer

The answer of Suppose we coupled the pay of Congress...

Question 6

Young John recently took a job with the U.S. Department of Agriculture. His supervisor gave him an assignment and a two-week deadline. He finished the job in three days and turned it in. Now his coworkers are mad at John. Why?

Accepted Answer

The answer of Young John recently took a job with...

Question 7

Suppose domestic automobiles were allocated in the United States the way public education is allocated. Describe how this system might work.

Accepted Answer

The answer of Suppose domestic automobiles were allocated in the...

Question 8

In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?

Accepted Answer

When a good is produced privately and consumers purchase it with their own money, both consumers and producers have strong incentives to economize. Consumers will seek to maximize their utility given their budget constraints, and producers will aim to minimize costs and maximize profits, leading to efficient resource allocation.

Question 9

Use the figure below to answer the following question(s).
Figure 6-1 
-Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely fail to undertake many projects that would be considered efficient or productive (in other words, do too few of them relative to economic efficiency)?

Accepted Answer

Type C represents a situation where the benefits are widespread among many voters, but the costs are concentrated on a few. This can lead to under-provision of projects because those who bear the concentrated costs have a strong incentive to oppose the project, while those who benefit may not have enough incentive to support it actively.

Question 10

Use the figure below to answer the following question(s).
Figure 6-1 
-Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

Accepted Answer

The answer of Use the figure below to answer the...

Question 11

Public choice analysis indicates

Accepted Answer

Public choice analysis suggests that constitutional rules can improve economic efficiency by limiting redistributive activities, rather than assuming politicians naturally enhance national wealth or that efficient political structures emerge naturally.

Question 12

Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?

Accepted Answer

The answer of Congressman Localstuff always votes for a balanced...

Question 13

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

Accepted Answer

Public goods are non-excludable and non-rivalrous, making them difficult for the private sector to provide efficiently, as they cannot easily charge users or prevent non-payers from benefiting.

Question 14

With a strong and active federal government, why do we need state and local governments?

Accepted Answer

The answer of With a strong and active federal government,...

Question 15

Use the figure below to answer the following question(s).
Figure 6-2 
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,

Accepted Answer

In quadrant B, both consumers and producers have little incentive to be cost-efficient, leading to inefficiencies in the market.

Question 16

A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington,
D.C. Why?

Accepted Answer

The answer of A survey of income by county revealed...

Question 17

Use the figure below to answer the following question(s).
Figure 6-2 
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers to be efficient and the incentive for consumers to economize the weakest?

Accepted Answer

In case D, the structure of production and consumption is such that neither producers nor consumers face direct incentives to be efficient or economize, leading to weaker incentives compared to other structures.

Question 18

How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?

Accepted Answer

The answer of How does a voting structure that relies...

Question 19

An analysis of market failure and government failure indicates

Accepted Answer

Both markets and governments can fail to achieve economic efficiency, so each situation requires careful evaluation to determine the best approach.

Question 20

Use the figure below to answer the following question(s).
Figure 6-2 
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers and consumers to economize the strongest?

Accepted Answer

In case A, both production and consumption are private, meaning that both producers and consumers directly bear the costs and benefits, creating the strongest incentive to economize.

Quiz 6: The Economics of Political Action

Which of the following factors weakens the case for government provision of goods and services relative to private-sector provision?

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

Is calling a voter rationally ignorant the same as calling her irrational? Explain.

Suppose we coupled the pay of Congress with the federal budget, so that for every billion dollars of deficit spending, a lawmaker's pay would be reduced $1,000. How would this affect fiscal policy?

Young John recently took a job with the U.S. Department of Agriculture. His supervisor gave him an assignment and a two-week deadline. He finished the job in three days and turned it in. Now his coworkers are mad at John. Why?

Suppose domestic automobiles were allocated in the United States the way public education is allocated. Describe how this system might work.

In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?

Public choice analysis indicates

Congressman Localstuff always votes for a balanced budget amendment to the U.S. Constitution. He also always votes for spending bills supported by the leadership of his political party. Is this rational?

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

With a strong and active federal government, why do we need state and local governments?

Use the figure below to answer the following question(s) . Figure 6-2 -Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,

A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?

How does a voting structure that relies on unanimity for an action guarantee that no one will be adversely affected? Why isn't this type of decision making used more frequently?

An analysis of market failure and government failure indicates

Use the figure below to answer the following question(s) . Figure 6-2 -Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers and consumers to economize the strongest?