Question 1

The ability to impose fines, revoke licenses, and put people into jail allows the government to:

Accepted Answer

A)   Ensure positive profits for its agencies
B)   Maximize revenues from its operations
C)   Enforce involuntary transactions
D)   Set market prices for goods and servicesE) A) and D)
F) B) and C)

Question 2

Regulatory capture in government often happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

Accepted Answer

A) True 
 B)False

Question 3

Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be:

Accepted Answer

A)   Accepted; the public good is produced even though it is economically inefficient
B)   Defeated; the public good is not produced even though it would have been efficient to do so
C)   Accepted; the public good is produced which is economically efficient
D)   Defeated; the public good is not produced, which is the proper outcomeE) All of the above
F) A) and C)

Question 4

One consequence of the paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following countries had the least corruption, as reported in the Global Corruption Barometer for 2010-11?

Accepted Answer

A)   Mexico
B)   Italy
C)   Germany
D)   RussiaE) B) and D)
F) A) and B)

Question 6

Special interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences.

Accepted Answer

A) True 
 B)False

Question 7

Deregulation of an industry will always lead to an improvement in economic efficiency.

Accepted Answer

A) True 
 B)False

Question 8

The special-interest effect is significant because:

Accepted Answer

A)   It corrects instances of spillover costs and benefits
B)   It can contribute to economic inefficiency in the public sector
C)   Capitalistic economies are based upon the pursuit of self-interest
D)   It causes quantity demanded to equal quantity supplied in competitive marketsE) None of the above
F) B) and C)

Exam 5: Governments Role and Government Failure

Correct Answer
verified

The ability to impose fines, revoke licenses, and put people into jail allows the government to:

Correct Answer
verified

One consequence of the paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote.

Correct Answer
verified

Special interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences.

Correct Answer
verified

Deregulation of an industry will always lead to an improvement in economic efficiency.

Correct Answer
verified

The special-interest effect is significant because:

Correct Answer
verified

Which of the following countries had the least corruption, as reported in the Global Corruption Barometer for 2010-11?

Correct Answer
verified

Regulatory capture in government often happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

Correct Answer
verified

Exam 5: Governments Role and Government Failure

Correct AnswerverifiedShow Answer

The ability to impose fines, revoke licenses, and put people into jail allows the government to:

Correct AnswerverifiedShow Answer

One consequence of the paradox of voting is that whoever sets the agenda of a vote could practically predetermine the results of the vote.

Correct AnswerverifiedShow Answer

Special interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences.

Correct AnswerverifiedShow Answer

Deregulation of an industry will always lead to an improvement in economic efficiency.

Correct AnswerverifiedShow Answer

The special-interest effect is significant because:

Correct AnswerverifiedShow Answer

Which of the following countries had the least corruption, as reported in the Global Corruption Barometer for 2010-11?

Correct AnswerverifiedShow Answer

Regulatory capture in government often happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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