Question 1

As it relates to the political process,the principal-agent problem results from the:

Accepted Answer

A)   negative externalities that are created by some policy actions.
B)   political rules that encourage elected officials to engage in unethical and illegal behavior.
C)   inconsistency between voters' interest in programs and politicians' interest in reelection.
D)   paradox of voting.E) A) and C)
F) None of the above

Question 2

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project.This is an example of:

Accepted Answer

A)   logrolling.
B)   the paradox of voting.
C)   the principal-agent problem.
D)   the median voter model.E) None of the above
F) A) and D)

Question 3

In corporations,owners are __________________ and managers are ________________.

Accepted Answer

A)   agents;principals
B)   stockholders;bondholders
C)   agents;employees
D)   principals;agentsE) B) and C)
F) A) and D)

Question 4

Which of the following is considered a potential solution to some regulatory capture?

Accepted Answer

A)   Bringing industry experts into the regulatory process.
B)   Creating a standard set of regulations for all industries.
C)   Deregulation of the industry.
D)   Government subsidies for firms in the industry.E) B) and D)
F) B) and C)

Question 5

According to some economists,the private sector is more efficient than the public sector mainly because:

Accepted Answer

A)   the private sector has a clear test of performance: profit and loss.
B)   wages,salaries,and fringe benefits are higher in the private sector.
C)   worker turnover is higher in the public sector.
D)   of extensive negative externalities in the public sector.E) A) and D)
F) B) and D)

Question 6

The field of economics that analyzes government decision making,politics,and elections is called:

Accepted Answer

A)   public finance.
B)   public choice theory.
C)   collective economics.
D)   political economy.E) C) and D)
F) B) and C)

Question 7

Political corruption occurs whenever:

Accepted Answer

A)   logrolling is used to secure votes for controversial legislation.
B)   government officials use unlawful misdirection of governmental resources for their own personal gain.
C)   special interest groups contribute to elected officials,who in turn support legislation that benefits the special interest group.
D)   there is pork barrel politics involved.E) A) and D)
F) C) and D)

Question 8

Public choice economists hold that politicians will:

Accepted Answer

A)   favor programs entailing immediate and clear-cut costs and vaguely defined or deferred benefits.
B)   follow policies leading to an optimal allocation of resources between public and private sectors.
C)   favor programs entailing immediate and clear-cut benefits and vaguely defined or deferred costs.
D)   objectively weigh the costs and benefits of various government programs and vote accordingly.E) All of the above
F) A) and C)

Question 9

Government failure is a prominent topic in:

Accepted Answer

A)   public choice theory.
B)   Keynesian economics.
C)   socialist theory.
D)   behavioral economics.E) B) and C)
F) A) and D)

Exam 5: Governments Role and Government Failure

Which of the following is considered a potential solution to some regulatory capture?

Correct Answer
verified

As it relates to the political process,the principal-agent problem results from the:

Correct Answer
verified

According to some economists,the private sector is more efficient than the public sector mainly because:

Correct Answer
verified

Public choice economists hold that politicians will:

Correct Answer
verified

In corporations,owners are __ and managers are .

Correct Answer
verified

Government failure is a prominent topic in:

Correct Answer
verified

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project.This is an example of:

Correct Answer
verified

The field of economics that analyzes government decision making,politics,and elections is called:

Correct Answer
verified

Political corruption occurs whenever:

Correct Answer
verified

Exam 5: Governments Role and Government Failure

Which of the following is considered a potential solution to some regulatory capture?

Correct AnswerverifiedShow Answer

As it relates to the political process,the principal-agent problem results from the:

Correct AnswerverifiedShow Answer

According to some economists,the private sector is more efficient than the public sector mainly because:

Correct AnswerverifiedShow Answer

Public choice economists hold that politicians will:

Correct AnswerverifiedShow Answer

In corporations,owners are __________________ and managers are ________________.

Correct AnswerverifiedShow Answer

Government failure is a prominent topic in:

Correct AnswerverifiedShow Answer

Senator A agrees to vote for Senator K's state project in exchange for Senator K voting for Senator A's state project.This is an example of:

Correct AnswerverifiedShow Answer

The field of economics that analyzes government decision making,politics,and elections is called:

Correct AnswerverifiedShow Answer

Political corruption occurs whenever:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In corporations,owners are __ and managers are .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified