Hardest Exam On Economics: Quiz!

42 Questions | Total Attempts: 386

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Hardest Exam On Economics: Quiz!

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Questions and Answers
  • 1. 
    Public choice refers to:
    • A. 

      The decisions and decision-making processes that individuals go through to solve public problems.

    • B. 

      Political decisions made in the interest of the public at large.

    • C. 

      The application of economic principles and tools to public-sector decision making.

    • D. 

      The process that individuals undergo to decide what goods and services they will purchase and consume.

    • E. 

      The process that individuals undergo to decide whether or not they will pursue a career government service.

  • 2. 
    Public choice is concerned with:
    • A. 

      Relative prices.

    • B. 

      Government decision making.

    • C. 

      Marketing techniques.

    • D. 

      Consumer surveying.

  • 3. 
    According to public choice theorists, people in the market sector and people in the public sector behave differently because:
    • A. 

      People in the two sectors have different motives.

    • B. 

      The two sectors have different institutional arrangements.

    • C. 

      Government employees do not act in their own self-interest.

    • D. 

      There are economies of scale in the market sector.

  • 4. 
    A public choice theorist would argue that:
    • A. 

      There is no such thing as a "good" or "bad" person.

    • B. 

      It does not matter whether a person is "good" or "bad."

    • C. 

      There are both "good" and "bad" persons, and some of each work for government and for business.

    • D. 

      Generally "good" persons work for government because they want to serve the public, and generally "bad" persons work for business because they are greedy and want to make profits at the expense of consumers.

    • E. 

      Generally "bad" persons work for government because they want to serve the needs of special-interest groups, and generally "good" persons work for business because they want to produce goods that people consume.

  • 5. 
    Public choice theorists assert that persons who change jobs from, say, a government position to a business position, sometimes alter their work behavior and attitudes because:
    • A. 

      They want to fit in and be liked by their fellow workers.

    • B. 

      They are acting rationally by weighing the costs and benefits of certain behavior in different work settings.

    • C. 

      They feel that if they change jobs, they should also change their behavior.

    • D. 

      Their new boss tells them it is in their best interest.

  • 6. 
    In a political election, a candidate whose positions are on the left will tend to be labeled __________ by his or her opponent.
    • A. 

      Too far to the left

    • B. 

      Too far to the right

    • C. 

      Too much of a middle-of-the-roader

    • D. 

      An unknown quantity

  • 7. 
    During an election, a candidate who is not doing as well in the polls as his or her opponent will
    • A. 

      Modify his or her position so that it is more like that of his or her opponent.

    • B. 

      Modify his or her position so that it is less like that of his or her opponent.

    • C. 

      Become more specific in discussing the issues.

    • D. 

      Label his or her opponent as a middle-of-the-roader.

  • 8. 
    In a simple majority vote on a public project,
    • A. 

      The project will never be undertaken if the costs exceed the benefits.

    • B. 

      The project may be undertaken even though the total costs exceed the total benefits.

    • C. 

      The intensity of individual preferences is taken into account.

    • D. 

      The project will always be undertaken if the total benefits exceed the total costs.

  • 9. 
    (1) (2) (3)   Individual Dollar benefits to individual Tax levied on individual A $333 $180 B $175 $180 C $160 $180 D $150 $180 Refer to Exhibit 32-1. The exhibit shows the breakdown of benefits and costs for a four-person town of a proposed $720 addition in books to the public library. How will each of the four persons, A-D, vote? (The first answer in the list is how person A would vote, the second is how person B would vote, and so on, so that “for” indicates that the voter would be in favor of having the additional books purchased by the library.)
    • A. 

      For; for; for; for

    • B. 

      Against; for; against; against

    • C. 

      For; against; against; against

    • D. 

      For; against; for; for

    • E. 

      None of the above

  • 10. 
    (1) (2) (3)   Individual Dollar benefits to individual Tax levied on individual A $333 $180 B $175 $180 C $160 $180 D $150 $180 Refer to Exhibit 32-l. The exhibit shows the breakdown of benefits and costs for a four-person town of a proposed $720 addition in books to the public library. The members of the community get to vote on the project at hand, and the majority rules. Given the data, the $720 will
    • A. 

      Be spent, even though the total benefits are less than the total costs.

    • B. 

      Not be spent, since more persons are against the project than are for it.

    • C. 

      Be spent, since the total benefits are greater than the total costs.

    • D. 

      Not be spent, since the total benefits are less than the total costs.

  • 11. 
    (1) (2) (3)   Individual Dollar benefits to individual Tax levied on individual A $333 $180 B $175 $180 C $160 $180 D $150 $180 Refer to Exhibit 32-1.  The exhibit shows the breakdown of benefits and costs for a four-person town considering the purchase of an additional $720 worth of books for the public library.  If simple majority voting determines the outcome, the books will
    • A. 

      Be purchased because more persons are for it than against it.

    • B. 

      Be purchased because the total benefits are greater than the total costs.

    • C. 

      Not be purchased even though total benefits exceed total costs.

    • D. 

      Not be purchased because the total costs are greater than the total benefits.

  • 12. 
    Persons who choose not to become informed on political and governmental matters because they feel that the costs of becoming informed exceed the benefits of becoming informed are
    • A. 

      Rationally ignorant.

    • B. 

      Not acting in their own best interests.

    • C. 

      Members of special-interest groups.

    • D. 

      Shortsighted.

  • 13. 
    Would we expect the "average" person to take more time to learn about the car he or she is considering purchasing or about the issues in the upcoming U.S. Senate race in his or her state?
    • A. 

      The Senate race, because it is critical that we elect the right people to government.

    • B. 

      The car, but there is no rational reason for this.

    • C. 

      The Senate race, because the person who is elected senator today may become president tomorrow.

    • D. 

      The car, because a mistake here can potentially cause him or her more harm on a day-to-day basis; in addition, a person is unlikely to be able to determine the outcome of a Senate race.

  • 14. 
    Special-interest groups are subsets of the general population that
    • A. 

      Attempt to influence government officials for the benefit of the general population.

    • B. 

      Choose to be rationally ignorant because they are interested only in things that the government is not concerned with.

    • C. 

      Are on the fringes of the political spectrum.

    • D. 

      A and c

    • E. 

      None of the above

  • 15. 
    Competition for votes between two political parties will cause those parties to
    • A. 

      Produce quite different policy proposals.

    • B. 

      Have very similar policy proposals.

    • C. 

      Find ways to clearly distinguish themselves in order to give voters a clear choice.

    • D. 

      A and c

    • E. 

      None of the above

  • 16. 
    Logrolling refers to       
    • A. 

      Choosing political platforms to appeal to special interests.

    • B. 

      Trading votes to gain support for legislation.

    • C. 

      Choosing political platforms to appeal to the "middle-of-the-road" voter.

    • D. 

      Gathering votes by pretending to support policies that appeal to voters.

    • E. 

      C and d

  • 17. 
    If it is assumed that people vote for the candidate who comes closer to matching their own views, to win votes in a two-person race
    • A. 

      One candidate will move to the far right of the political spectrum while the other moves to the far left.

    • B. 

      One candidate will move between the middle and far right end of the political spectrum while the other moves between the middle and the far left end.

    • C. 

      Both candidates will move to the far right end of the political spectrum.

    • D. 

      Both candidates will move to the far left end of the political spectrum.

    • E. 

      Both candidates will move toward the middle of the political spectrum.

  • 18. 
    Rational ignorance refers to voter-citizens choosing to be uninformed about politics and government on an individual basis because
    • A. 

      Of apathy.

    • B. 

      Of ignorance.

    • C. 

      Of laziness.

    • D. 

      They believe the benefits of becoming informed are greater than the costs.

    • E. 

      They believe the benefits of becoming informed are less than the costs.

  • 19. 
    Special-interest groups are subsets of __________ that hold (usually) intense preferences for or against a particular government service, activity, or policy.
    • A. 

      The general population

    • B. 

      Bureaucrats

    • C. 

      Elected officials

    • D. 

      Candidates for political office

    • E. 

      All of the above

  • 20. 
    Congressman A promises to vote for a bill that Congressmen B and C are sponsoring, and in return both B and C promise to vote for a future bill that A is sponsoring. This practice is called
    • A. 

      Cutting "red tape."

    • B. 

      Chasing the median voter.

    • C. 

      Rational ignorance.

    • D. 

      Logrolling.

  • 21. 
    Refer to Exhibit 32-2-(a). Two candidates are competing for an electorate consisting of 9 voters labeled A-I shown positioned with respect to their ideological stands on issues. The median voter theory would predict that candidates will assume the ideological position(s)
    • A. 

      Of voter A.

    • B. 

      Halfway between that of voter G and that of voter A.

    • C. 

      Of voter C.

    • D. 

      Of voter B.

    • E. 

      Of voter G and voter I, respectively.

  • 22. 
    Refer to Exhibit 32-2-(b). Two candidates are competing for an electorate consisting of 3 voters labeled A, B, and C shown positioned with respect to their ideological stands on issues. The median voter theory would predict that candidates will assume the ideological position(s)
    • A. 

      Of voter B.

    • B. 

      Of voters C and A, respectively.

    • C. 

      Halfway between voter C and voter A.

    • D. 

      Halfway between voter B and voter A.

    • E. 

      Halfway between voter C and voter B, for one candidate, and of voter A for the other.

  • 23. 
    Refer to Exhibit 32-2-(c). Two candidates are competing for an electorate consisting of 11 voters labeled A-K shown positioned with respect to their ideological stands on issues. The median voter theory would predict that candidates will assume the ideological position(s)
    • A. 

      Of voters K and G, respectively.

    • B. 

      Of voters H and J, respectively.

    • C. 

      Of voters I and A, respectively.

    • D. 

      Of voter E.

  • 24. 
    An example of a government bureaucrat is
    • A. 

      A U.S. senator.

    • B. 

      A worker at the Department of Motor Vehicles.

    • C. 

      The head of the National Park Service.

    • D. 

      All of the above

    • E. 

      B and c

  • 25. 
    Most government bureaus provide services in a setting that is similar to which market structure?
    • A. 

      Perfect competition

    • B. 

      Monopolistic competition

    • C. 

      Oligopoly

    • D. 

      Monopoly.