Question 1

The median voter is the one whose most-preferred political outcome is the median of the most-preferred outcome of all those voting.

Accepted Answer

This is the definition of the median voter theorem in political science.

Question 2

Political transactions costs are likely to be greater under unanimous consent than under majority rule.

Accepted Answer

Unanimous consent requires every member to agree on a decision, which can be difficult and time-consuming. This increases the likelihood of negotiation and compromise, which can lead to higher political transaction costs compared to majority rule, where decisions are made by a simple majority vote.

Question 3

If all voters have single-peaked preferences, a political equilibrium will not be possible under majority rule.

Accepted Answer

This statement is false. In fact, if all voters have single-peaked preferences, a political equilibrium is possible and will occur under majority rule. This is because the median voter theorem applies, which suggests that the candidate who aligns closest with the median voter's preference will win the election.

Question 4

A voter's most-preferred political outcome will change if, other things being equal, that person's tax share per unit of the public good is changed.

Accepted Answer

If a voter's tax share per unit of the public good changes, it may influence their choice of political outcome as their personal benefit-cost calculation will shift. If their tax burden decreases, they may be more willing to support policies that align with their values even if they have a lower personal benefit, whereas a higher tax burden may lead them to prioritize their personal benefit over their ideological preferences.

Question 5

A bureaucrat who seeks to maximize the annual size of his budget each year will propose annual output levels corresponding to the amount for which MSB = MSC.

Accepted Answer

A bureaucrat who seeks to maximize the annual size of his budget each year may propose levels of output that do not correspond to where MSB = MSC. This is because their goal is to maximize their budget, not promote efficiency or social welfare.

Question 6

Logrolling always succeeds in passing two paired issues that could not pass if voted on separately.

Accepted Answer

Logrolling is a practice of exchanging support or favors, often by legislators, in order to pass their respective bills or policies. While logrolling can increase the chances of a bill's passage, there is no guarantee that it will always succeed, especially if the paired issues are controversial or have strong opposition.

Question 7

A political equilibrium for a pure public good is generally independent of the collective choice rule used.

Accepted Answer

The political equilibrium for a pure public good can be significantly affected by the collective choice rule used, as different rules can lead to different outcomes in terms of how the good is provided and financed.

Question 8

A community currently hires 10 security guards per week to patrol their neighborhood. Each security guard costs $300 per week. Assuming that the tax-sharing arrangement agreed to results in each of 300 voters paying the same tax share, each voter pays a weekly tax bill of:
A) $1.
B) $3.
C) $10.
D) $30.

Accepted Answer

The cost of hiring 10 security guards per week is:
10 guards/week x $300/guard = $3000/week

If this cost is shared equally by 300 voters, then each voter's weekly tax bill is:
$3000/week ÷ 300 voters = $10/voter/week.

Therefore, the answer is C, $10.

Question 9

Unanimous consent is a collective choice rule that will protect the rights of minorities.

Accepted Answer

Unanimous consent requires complete agreement among all members, including minorities, before a decision is made. This ensures that the rights and concerns of minorities are heard and considered in the decision-making process.

Question 10

Cycling can occur in elections under majority rule if some voters have multiple-peaked preferences.

Accepted Answer

Cycling can occur when voters have preferences that do not follow a single-peaked pattern, resulting in different outcomes depending on the order in which the options are presented. This can happen in majority rule elections, where the option with the most votes wins, and some voters have preferences that are not easily reconcilable with others.

Question 11

A budget-maximizing bureaucrat seeks funding levels where the total social cost equals the total social benefit.

Accepted Answer

A budget-maximizing bureaucrat seeks to allocate funding in a way that maximizes social welfare, which is achieved when the total social benefits equal the total social costs. Therefore, the bureaucrat would aim to match funding levels to achieve this balance.

Question 12

A person for whom the marginal benefit of a public good declines as more is made available has single-peaked preferences.

Accepted Answer

Single-peaked preferences mean that the individual's level of satisfaction increases as they move closer to their favorite point or level of provision for the public good, and declines as they move further away from it.

Question 13

A small community currently taxes residents to provide monthly community concerts. Voter A currently pays a tax per concert equal to $50 per month. This voter receives a marginal benefit of $75 at the current political equilibrium number of concerts per month. Voter A:
A) is the median voter.
B) would be made better off if the number of monthly concerts were increased.
C) would be made worse off if the number of monthly concerts were increased.
D) has achieved his most-preferred political outcome for monthly concerts.

Accepted Answer

Voter A receives a marginal benefit of $75 per concert but only pays $50 per concert, meaning that they are benefiting from the current arrangement. If the number of monthly concerts were increased, Voter A would receive even more benefits and would therefore be made better off. Thus, choice B is correct.

Question 14

A person with multiple-peaked preferences is always made worse off as the quantity of a pure public good is increased, or decreased, once he or she attains his or her most-preferred political outcome.

Accepted Answer

This statement is false. A person with multiple-peaked preferences may have preferences that are not strictly increasing or decreasing in the quantity of a pure public good. Therefore, his or her well-being may not always decrease or increase with changes in the quantity of the public good, depending on the shape of his or her preference curve.

Question 15

A ration person's most preferred political outcome is when the cost of the quantity of government-supplied goods is below the marginal benefit.

Accepted Answer

The answer of A ration person's most preferred political outcome...

Question 16

A proposal is put forward to increase the number of police officers. You estimate that your marginal benefit from police protection just equals your tax per police officer at the number of officers that would constitute the police force if the proposal passes. You will therefore vote in favor of the proposal.

Accepted Answer

If the marginal benefit from police protection just equals the tax per police officer, it means that the additional protection received is equal to the cost incurred for it, making it a beneficial decision to vote in favor of the proposal.

Question 17

Special interest groups are more likely to gain income through the political process if they are a large percentage of the population.

Accepted Answer

Special interest groups may gain income through the political process regardless of their size. It primarily depends on their political power and ability to influence elected officials and policies.

Question 18

If all voters have the identical most-preferred political outcome, given their tax shares, then the political equilibrium under majority rule will be identical to the political equilibrium under unanimous consent.

Accepted Answer

If all voters have the same most-preferred outcome based on their tax shares, then they will all agree on the same political outcome. This means that unanimous consent will also result in the same outcome as majority rule, as there is no disagreement among the voters.

Question 19

Logrolling can allow more than one issue of minority interest to be passed.

Accepted Answer

Logrolling involves the exchange of votes between legislators on different issues. This can allow for multiple issues of minority interest to be passed by exchanging votes and gaining support from various members of the legislature.

Question 20

Political externalities are likely to be negligible when collective choices are made under majority rule.

Accepted Answer

Political externalities can still exist even under majority rule, as there may still be a minority whose interests are not adequately represented or taken into account in the decision-making process. This can lead to negative consequences for the minority group or for society as a whole.

Quiz 5: Public Choices and the Political Process