Question 1

The greater the share of the population that is brought into power, the:

Accepted Answer

When a greater share of the population is brought into power, there is likely to be more diversity of opinions and interests represented in the policy-making process. As a result, policies are more likely to offer something for everyone in the society. However, this may also make it more difficult to reach efficient decisions and may slow down the policy-making process. It is not necessarily true that policies will impede economic growth.

Question 2

Much of public choice argues that what the public wants isn't reflected in elected officials' actions. Yet there is a strong connection between famine prevention and democracy (more democracy means less famine), and this "exception" is completely consistent with ideas from public choice. Why?

Accepted Answer

In a democratic setting, voters have a greater incentive to become informed and hold their elected officials accountable for famine prevention measures, as the consequences of failure are directly and immediately felt by the electorate. This incentivizes officials to take actions that align with public interests, thereby reducing the likelihood of famine. This is consistent with the idea from public choice that individuals act in their self-interest, but in a democratic system, their self-interest is aligned with the public good.

Question 3

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

Accepted Answer

The economists Besley and Burgess found that both more political competition and more newspapers are factors that make a government more responsive to food crises. With more political competition, politicians and leaders are more motivated to respond promptly to crises and implement effective policies, as their reputation and chances of getting elected depend on it. With more newspapers, there is more media coverage and public scrutiny of the government's actions, which can also incentivize leaders to respond quickly and effectively to food crises. Therefore, both factors work together to increase government responsiveness.

Question 4

One reason for the good record of democracies on economic growth is that:

Accepted Answer

Democracies tend to have a better record on economic growth because they allow for the public to support policies that generate economic growth. This is because democracies have more open and transparent decision-making processes, which allows for the public to hold their leaders accountable for policies that support economic growth. In contrast, authoritarian regimes tend to rely on a small group of elites to make decisions and often prioritize their own interests over those of the broader public. Therefore, democracies are more likely to support policies that benefit the public as a whole and promote economic growth.

Question 5

Which of the following statements is TRUE?

Accepted Answer

The answer of Which of the following statements is TRUE?
...

Question 6

The reason democracies typically become richer is because:

Accepted Answer

When citizens in a democracy have a say in policies that shape the economy, they are more likely to support policies that increase economic growth. This is because they understand that a stronger economy means better job opportunities and higher standards of living for themselves and their families. As a result, democratic countries tend to have more pro-growth policies, such as investments in infrastructure and education, that help drive economic development and increase their overall wealth.

Question 7

Which of the following statements is FALSE?

Accepted Answer

This statement is false because small nondemocratic elites are often more focused on their own welfare and the welfare of their close associates, rather than the welfare of larger groups. Democratic systems, on the other hand, are structured with checks and balances to ensure that decision-making reflects the views and needs of the broader population.

Question 8

Suppose that a special interest group makes up 2% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

Accepted Answer

The answer of Suppose that a special interest group makes...

Question 9

Nobel Prize-winning economist Amartya Sen argued that famine in the history of the world could have been eliminated by:

Accepted Answer

Amartya Sen argued that famine is not just a result of food scarcity but is also caused by political and social factors, such as lack of democracy and freedom of expression. He believed that introducing democracy could prevent famines by giving people a voice and enabling them to hold their governments accountable for ensuring food security. Therefore, choice C is the best option. Choices A, B, and D do not address the underlying causes of famine and may not be effective in preventing future famines.

Question 10

Suppose that a special interest group makes up 10% of the overall population. If a new proposal stands to generate $2 million in additional benefits to the group, the group will:

Accepted Answer

The answer of Suppose that a special interest group makes...

Question 11

If a policy transfers $100 to a special interest group at a cost of $4,000 to society, the group would lobby:

Accepted Answer

The answer of If a policy transfers $100 to a...

Question 12

Which of the following do democracies usually support?
I. institutions that are bad for economic growth
II. free markets, property rights, and the rule of law
III. policies that don't kill their own citizens

Accepted Answer

Democracies usually support free markets, property rights, and the rule of law, as these are considered essential for economic growth and individual freedoms. Additionally, democracies typically prioritize protecting the lives and rights of their citizens, and do not engage in policies that intentionally harm or kill them. Therefore, options I and III are not consistent with democratic values.

Question 13

________ groups tend to favor more efficient policies.

Accepted Answer

The answer of ________ groups tend to favor more efficient...

Question 14

According to public choice theory, a more democratic country:

Accepted Answer

Public choice theory suggests that policies will be influenced by the interests and preferences of those who hold power. In a more democratic country, a larger share of the population is able to participate in the government, and therefore policies are more likely to reflect the preferences of the majority, which in turn are likely to prioritize policies that promote economic growth.

Question 15

According to the text, the 1974 famine in Bangladesh was largely a result of

Accepted Answer

The text states that the 1974 famine in Bangladesh was largely a result of bad government policies.

Question 16

Public choice theory suggests that larger special interest groups:

Accepted Answer

The answer of Public choice theory suggests that larger special...

Question 17

Suppose that a special interest group makes up 0.5% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

Accepted Answer

The answer of Suppose that a special interest group makes...

Question 18

Which of the following is TRUE about the effects of democracy?

Accepted Answer

Democracy is often linked to the development of good institutions, such as independent judiciary and free press, which can strengthen the rule of law and restrain the abuse of power. These institutions in turn can help align self-interest with the broader social interest, because they create a competitive and transparent environment that allows citizens to voice their preferences and hold officials accountable. While democracy is not a perfect system and there can still be instances where the public acts against the broader good, it can lay the groundwork for a more equitable and open society.

Question 19

Which of the following is TRUE about the relationship between democracy and economic growth?

Accepted Answer

Research has shown that democracy generally leads to the development of institutions that promote economic growth. This is because democratic institutions tend to create a more stable and predictable environment for businesses, encourage investment in human capital, and promote innovation and technological progress. However, it should be noted that the relationship between democracy and economic growth is complex and there are many factors that can influence it.

Question 20

Economists tend to favor policies like price controls and tariffs.

Accepted Answer

Economists generally do not favor policies like price controls and tariffs as they can distort market forces and lead to inefficiencies. Free market principles and minimal government interference are often preferred by economists.

Quiz 21: Political Economy and Public Choice

The greater the share of the population that is brought into power, the:

Much of public choice argues that what the public wants isn't reflected in elected officials' actions. Yet there is a strong connection between famine prevention and democracy (more democracy means less famine) , and this "exception" is completely consistent with ideas from public choice. Why?

Economists Besley and Burgess found that a government is more responsive to food crises when there is:

One reason for the good record of democracies on economic growth is that:

Which of the following statements is TRUE?

The reason democracies typically become richer is because:

Which of the following statements is FALSE?

Suppose that a special interest group makes up 2% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

Nobel Prize-winning economist Amartya Sen argued that famine in the history of the world could have been eliminated by:

Suppose that a special interest group makes up 10% of the overall population. If a new proposal stands to generate $2 million in additional benefits to the group, the group will:

If a policy transfers $100 to a special interest group at a cost of $4,000 to society, the group would lobby:

Which of the following do democracies usually support? I. institutions that are bad for economic growth II. free markets, property rights, and the rule of law III. policies that don't kill their own citizens

________ groups tend to favor more efficient policies.

According to public choice theory, a more democratic country:

According to the text, the 1974 famine in Bangladesh was largely a result of

Public choice theory suggests that larger special interest groups:

Suppose that a special interest group makes up 0.5% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

Which of the following is TRUE about the effects of democracy?

Which of the following is TRUE about the relationship between democracy and economic growth?

Economists tend to favor policies like price controls and tariffs.