Question 1

Public choice theory indicates someone who spends more time evaluating which tennis racket to buy than deciding which U.S.Senate candidate to support

Accepted Answer

Public choice theory asserts that individuals are rational decision-makers who seek to maximize their personal utility. In this context, the structure of incentives confronted by the individual may differ when buying a tennis racket vs. choosing a U.S. Senate candidate. The process of evaluating a tennis racket is usually simpler than choosing a political candidate, with fewer variables to consider. Therefore, it is rational for the individual to allocate more time to the decision that requires more effort and inputs.

Question 2

John Smith is a typical citizen.Economic theory suggests that he is likely to make a more informed choice when he buys a personal computer than when he votes for a congressional candidate.This view is

Accepted Answer

Economic theory suggests that individuals have more incentive to inform themselves and make more informed choices when they are dealing with private goods such as personal computers, where the decision directly affects their own well-being. In contrast, when it comes to public goods such as politics, a single individual's decision is unlikely to sway the outcome of the election, and thus the incentive to become informed is lower. Therefore, it is more likely that John Smith will make a more informed choice when buying a personal computer than when voting for a congressional candidate.

Question 3

Despite being a college graduate,Jack Adams cannot name any of his representatives in Congress and he has no idea which issues are being debated and voted on this week in Congress.According to public choice analysis,Jack is

Accepted Answer

According to public choice analysis, individuals will only invest time and effort to gain information and knowledge that directly benefits them. In this case, Jack does not see any personal benefit in knowing about his representatives or the issues being debated in Congress, making his lack of knowledge a rational personal choice.

Question 4

People who spend more time and effort investigating the advantages and disadvantages of different automobile models when they go to purchase one than they do investigating the strengths and weaknesses of presidential candidates are saying,in effect,that

Accepted Answer

The answer of People who spend more time and effort...

Question 5

Which of the following is true?

Accepted Answer

In order to remain in office, a politician has to be able to gain votes for his reelection and increase the support coming from contributors. This often means pursuing policies that are popular with their constituents and donors.

Question 6

According to the shortsightedness effect,politicians tend to favor projects with

Accepted Answer

The shortsightedness effect refers to the tendency of politicians to favor projects with short-run benefits, even if the long-run costs outweigh the benefits. This means that they may prioritize projects that have immediate benefits, such as job creation or increased economic activity, but may not consider the long-term costs of the project. Option B fits this description as it has short-run benefits but long-run costs.

Question 7

Which of the following is true of government activities under a system of representative democracy?

Accepted Answer

Under a system of representative democracy, productive activities undertaken by the government will be favored by an overwhelming majority of voters when they pay in proportion to the benefits received. This is because voters will see the benefits of these activities and feel motivated to support them. While a majority may not always guarantee productivity, it is more likely that productive activities will be favored under this system. Therefore, option C is the best choice. The other options are not necessarily true and do not accurately portray the nature of representative democracy.

Question 8

Economic analysis suggests that bureaucrats and public-sector managers have a strong incentive to

Accepted Answer

Bureaucrats and public-sector managers have a strong incentive to expand their budgets because their power and influence are often tied to the size of their budget. Additionally, they may fear a reduction in their budget in the future, so they may aim to use as much of their budget as possible in the present. This behavior is known as budget maximization, and it can lead to inefficiencies and wasteful spending.

Question 9

Economists refer to the lack of incentive that voters have to search for and obtain information to help make better political choices as the

Accepted Answer

The term "rational ignorance effect" refers to the phenomenon where voters choose to remain ignorant about certain political issues because they believe that the cost of obtaining the information exceeds the potential benefits of using that information to make better political decisions. It is a common criticism of democracy since the rational ignorance effect can lead to uninformed voters and, therefore, suboptimal outcomes. Thus, option D, rational ignorance effect, is the best choice.

Question 10

Senator Blacklung represents a state that grows a significant amount of tobacco.Not only do many of his constituents work for businesses in this industry,but the tobacco firms also make generous contributions to his reelection campaign.According to public choice theory,which of the following bills would Senator Blacklung be most likely to support?

Accepted Answer

Senator Blacklung is most likely to support a bill that provides substantial subsidies for tobacco growers, as it aligns with the interests of his constituents and the tobacco firms that contribute to his reelection campaign. The other options either propose a tax increase on cigarettes or prohibit campaign contributions from tobacco companies, which would not be in Senator Blacklung's best interest.

Question 11

Public choice analysis suggests that the primary motivating factor for politicians will be finding the policies that are most likely to

Accepted Answer

Public choice theory suggests that politicians are primarily motivated by their own self-interest, which often includes getting reelected. Politicians are likely to pursue policies that are popular with their constituents and that will increase their chances of winning another term in office.

Question 12

Senator Dogood is pushing for the construction of a new military base in his state even though,from the standpoint of national security,it is clear that there are better places to locate the new military base.Economic theory would suggest that Senator Dogood is

Accepted Answer

Economic theory suggests that individuals (including politicians) act rationally to achieve their goals. In this case, Senator Dogood's goal may be to get reelected and having a new military base in his state may increase his chances of achieving that goal, even though locating the base elsewhere may be better for national security.

Question 13

The rational-ignorance effect refers to the

Accepted Answer

The rational-ignorance effect refers to the lack of incentive voters have to become well-informed about candidates and issues because their vote is unlikely to affect the outcome of an election. This means that voters may choose not to educate themselves on important issues because they do not see the value in doing so.

Question 14

Payments that users (consumers)are required to make if they want to receive certain services provided by the government are called

Accepted Answer

User charges are fees that are charged to individuals who use a particular government service, such as tolls for using a highway or admission fees for visiting a national park. These charges are not considered taxes, as they are not based on income or property ownership.

Question 15

The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes

Accepted Answer

If voters believe their votes won't make a difference, they may feel they have little incentive to become informed about candidates and political issues since they don't see the point in investing time and energy into something they see as futile.

Question 16

When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,

Accepted Answer

When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project, productive (efficient) projects will tend to be favored by an overwhelming majority of voters. This is because individuals who receive more benefits from the project will be willing to pay more taxes for it, while those who don't will be willing to pay less or oppose it. This results in a fair allocation of costs and benefits and helps to ensure that the project is economically efficient.

Question 17

Public choice theory indicates competitive forces provide a politician with a strong incentive to offer voters a bundle of political goods that she believes

Accepted Answer

Public choice theory suggests that politicians are primarily motivated by their own self-interest, which includes winning elections. Therefore, they will offer voters political goods that they believe will increase their chances of winning elections. Option A is incorrect because a politician's primary concern is not always what is best for the country but what will help them win elections. Option B is incorrect because the success of a bundle of political goods in the legislative process is often uncertain. Option C is also incorrect because what is good for society may not always align with the politician's self-interest.

Question 18

A politician may be considered an entrepreneur in the sense that

Accepted Answer

Just as a successful entrepreneur identifies and offers goods or services that are in demand by consumers, a successful politician identifies and offers policies or programs that are in demand by voters. Like an entrepreneur, a politician may also be motivated by self-interest and desire for gain, but this is not a defining characteristic of entrepreneurship or politics. Therefore, choices A, B, and D are not accurate.

Question 19

Which of the following is true?

Accepted Answer

When voters pay in proportion to benefits received, it ensures that the cost of the government activity is distributed fairly among the citizens. If the activity is productive, then all citizens who paid for it will benefit from it, regardless of their personal preference or opinion. This is because the benefits are directly proportional to the amount paid, and not determined by the individual's support or opposition to the activity.

Question 20

Ginny is the owner of a small business,and she is 35 years old.She doesn't smoke cigarettes,and she often spends her weekends with her family camping at the local Greentree state park.According to public choice theory,which of the following four politicians for a public office would Ginny be most likely to vote for in the upcoming election?

Accepted Answer

The answer of Ginny is the owner of a small...

Quiz 6: The Economics of Collective Decision-Making

Public choice theory indicates someone who spends more time evaluating which tennis racket to buy than deciding which U.S.Senate candidate to support

John Smith is a typical citizen.Economic theory suggests that he is likely to make a more informed choice when he buys a personal computer than when he votes for a congressional candidate.This view is

Despite being a college graduate,Jack Adams cannot name any of his representatives in Congress and he has no idea which issues are being debated and voted on this week in Congress.According to public choice analysis,Jack is

People who spend more time and effort investigating the advantages and disadvantages of different automobile models when they go to purchase one than they do investigating the strengths and weaknesses of presidential candidates are saying,in effect,that

Which of the following is true?

According to the shortsightedness effect,politicians tend to favor projects with

Which of the following is true of government activities under a system of representative democracy?

Economic analysis suggests that bureaucrats and public-sector managers have a strong incentive to

Economists refer to the lack of incentive that voters have to search for and obtain information to help make better political choices as the

Public choice analysis suggests that the primary motivating factor for politicians will be finding the policies that are most likely to

Senator Dogood is pushing for the construction of a new military base in his state even though,from the standpoint of national security,it is clear that there are better places to locate the new military base.Economic theory would suggest that Senator Dogood is

The rational-ignorance effect refers to the

Payments that users (consumers) are required to make if they want to receive certain services provided by the government are called

The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes

When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,

Public choice theory indicates competitive forces provide a politician with a strong incentive to offer voters a bundle of political goods that she believes

A politician may be considered an entrepreneur in the sense that

Which of the following is true?