Question 1

Other things constant, if both the benefits and costs of a public-sector activity are widespread among voters, the political process will generally result in the

Accepted Answer

The answer of Other things constant, if both the benefits...

Question 2

Restrictions that limit sugar imports, subsidies for the construction of sports stadiums, and federal spending on programs like the construction of an indoor rain forest in Iowa all provide examples of government programs

Accepted Answer

Restrictions on sugar imports, subsidies for sports stadiums, and federal spending on projects like an indoor rain forest in Iowa are all examples of government programs that benefit specific special-interest groups. These groups have lobbied for government intervention to protect their industries or advance their causes, often at the expense of the general public. Such programs are not necessarily based on careful analysis of benefits relative to cost or designed to promote the general welfare, but rather reflect the political attractiveness of special interests.

Question 3

In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?

Accepted Answer

The answer of In which case is the political process...

Question 4

If a federal agency requested funds to build a dam on an Idaho river to irrigate nearby farmland used for growing potatoes, the most active support for the project probably would come from

Accepted Answer

The potato farmers who own the land to be irrigated would directly benefit from the dam project, as their crops would have access to water and potentially see increased yields. Therefore, they would likely be the most active supporters of the project. The other options, such as taxpayers or potato consumers, may have more indirect or minor benefits from the project and would likely have less motivation to actively support it.

Question 5

In which of the following situations is the political process likely to result in the inefficient and wasteful use of resources?

Accepted Answer

When benefits are concentrated and costs are widespread, a special interest group with a narrow agenda will push hard to influence politicians to pursue policies that benefit them, leading to inefficient allocation of resources. Meanwhile, the costs of such policies tend to be spread across a broad, diffuse population who have little power to lobby against them. This imbalance of interest and influence can lead to inefficient policies that benefit a few at the expense of many.

Question 6

A local government operates a city recreation center with a pool and tennis courts. The center is financed through $50 annual membership fees (required for members to use it). This type of financing is an example of a

Accepted Answer

The $50 membership fee is a user charge, which is a fee assessed to those who directly benefit from a particular government service or facility. It is not a head tax, which is a fee assessed on all individuals regardless of whether they use the service or not. It is not an excise fee, which is a tax on a particular good or service. It is also not a progressive tax, which is a tax that increases as income increases.

Question 7

Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?

Accepted Answer

User charges are fees paid directly by the person or group that uses a government program or service. This creates a direct link between the benefits received (use of the program or service) and the costs borne (payment of the user charge). So, user charges are the best choice for creating a close relationship between voter benefits and costs.

Question 8

Which of the following is a distinguishing characteristic of a user charge?

Accepted Answer

A distinguishing characteristic of a user charge is that persons pay roughly in proportion to the extent that they use the good or service. This means that people who use the service more will pay more, while people who use the service less will pay less. User charges are often used for things like toll roads or public transportation, where people only pay when they actually use the service.

Question 9

Special-interest legislation is characterized by

Accepted Answer

Special-interest legislation typically benefits a concentrated group or industry while spreading the costs across a wider group, making option B the most accurate description.

Question 10

When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the

Accepted Answer

The special-interest effect is when politicians support policies that benefit small interest groups, often at the expense of larger, unorganized groups. This choice best reflects this situation described in the question. The tragedy of interest refers to a situation where everyone in a group has an incentive to cooperate for the common good, but individuals act in their own self-interest instead. The unorganized interest effect is not a recognized term in political science. The shortsightedness effect is not directly related to the situation described in the question.

Question 11

A special-interest issue is one that

Accepted Answer

A special-interest issue benefits a small, well-organized interest group at the expense of taxpayers or consumers. This means that the group is receiving a benefit that is not enjoyed by the general public, and the cost of providing that benefit is being borne by everyone else. The group advocating for the issue may be able to influence policymakers to advance their cause, even if it is not in the best interest of the broader public.

Question 12

Government action will often result in the counterproductive use of resources because

Accepted Answer

When the government prioritizes winning political elections over adopting only productive programs, it can lead to the misallocation of resources towards programs that may not necessarily be effective or efficient. This can be due to the pressure to prioritize programs that are popular with voters or interest groups, rather than programs that may be more beneficial in the long run.

Question 13

For activities in which the benefits are concentrated and the costs widespread, governments are likely to undertake

Accepted Answer

The answer of For activities in which the benefits are...

Question 14

Which of the following provides the most reasonable explanation for why agricultural interests lobby for higher farm subsidies and price supports?

Accepted Answer

Agricultural interests lobby for higher farm subsidies and price supports because they seek a redistribution of income favoring themselves. These subsidies and price supports protect farmers from fluctuations in the market and guarantee them a higher income, which benefits their own interests.

Question 15

A local government operates a city water system and finances it through fees that it charges to water consumers. This type of financing is an example of a

Accepted Answer

User charge is a fee that is charged for the use of a particular service or product, such as the fees charged by the local government for the use of the city water system.

Question 16

An issue that generates substantial benefits to a small group of individuals while imposing a small cost on many others is called a

Accepted Answer

A special-interest issue benefits a specific group of individuals while imposing costs on others. This type of issue often receives intensive lobbying efforts from the affected group and may go against the broader public interest.

Question 17

According to the special-interest effect, which of the following groups is least likely to have a significant influence on the political process?

Accepted Answer

Nonunion employees have less organized and unified interests compared to labor unions or professional associations, making it more difficult for them to have a significant influence on the political process.

Question 18

According to economic theory, it is often rational for a politician to support special interest groups at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers)

Accepted Answer

When nonspecial-interest voters are unconcerned or uninformed about the issue, the politician can support special interest groups without facing any repercussions from them. Additionally, if campaign funds are readily available from the special interest group, the politician can use those funds to finance their reelection campaign, making it rational for them to support the special interest group even if it comes at the expense of unorganized, widely dispersed groups.

Question 19

In which one of the following situations is the political process most likely to result in both the acceptance of efficient (productive) programs and the rejection of inefficient (counterproductive) political activities?

Accepted Answer

When the people who benefit from a government program pay the costs of the program roughly in proportion to the benefits that each receives, there is a greater likelihood that the program will be efficient and productive. This creates a situation where voters are more likely to support programs that are effective and reject those that are inefficient. The other options (B, C, and D) present scenarios where either the benefits or costs are too concentrated or too disproportionate, leading to a less efficient and productive political process.

Question 20

Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?

Accepted Answer

Sellers of corn may pressure policy makers into enacting a price floor because it ensures that they receive a certain minimum price for their product, which may not be possible in a free market where prices fluctuate based on supply and demand. This can lead to excess supply and potentially wasted resources. However, this may not necessarily improve efficiency overall.

Quiz 6: The Economics of Political Action