Question : 41) Which of the following used to argue that the : 1388010

41) Which of the following is used to argue that the self-interest of public policymakers will often lead to actions that are inconsistent with the preferences of the voters they represent?

A) the voting paradox

B) the median voter theorem

C) rent seeking

D) transitivity of voters’ preferences

42) Some individuals seek to use government action to make themselves better off at the expense of others. The actions of these individuals

A) are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance.

B) are examples of rent seeking.

C) offer proof that Adam Smith’s “invisible hand” is not valid.

D) are evidence of the voting paradox.

43) Which of the following is an example of rent seeking behavior?

A) Apple earned large profits from the development and sale of the iPhone.

B) Amazon introduced the Kindle to compete with Sony’s Digital Reader. Amazon was motivated by the desire to earn profits from the Kindle but also increased the choice of digital music players available to consumers.

C) U.S. sugar firms convinced Congress to impose a quota on imports of sugar.

D) Recent increases in cigarette taxes faced little opposition from voters, many of whom were rationally ignorant with respect to the tax.

44) Which of the following statements refers to rent seeking?

A) “Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws.”

B) “The federal government should spend more money on programs that help low income citizens and less money on national defense.”

C) “The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929.”

D) “There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program.”

45) Which of the following is a consequence of the voting paradox?

A) A majority of voters elect a candidate that does not represent the preferences of the voter who is in the political middle.

B) Politicians support small groups of individuals and firms that benefit from special interest legislation, rather than a much larger group of voters who pay the cost for this legislation.

C) Individuals and firms who benefit from government actions engage in rent seeking.

D) The collective preferences of voters are not transitive and voting outcomes are inconsistent.

46) What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters’) welfare?

A) the voting paradox

B) logrolling

C) rational ignorance

D) regulatory capture

47) The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local and federal) and the manner in which individual choices are made in markets. Which of the following descriptions is consistent with the difference between collective decision making and decision making in markets?

A) Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.

B) Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets.

C) The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay.

D) Choices made through government policies are more important than decisions individuals make through markets.

48) Economists often analyze the interaction of individuals and firms in markets. Economists also examine the actions of individuals and firms as they attempt to use government to make themselves better off at the expense of others, a process that is referred to as

A) rent seeking.

B) logrolling.

C) government failure.

D) the public choice initiative.

49) Financial contributions to the campaigns of members of Congress, state legislators and other elected officials by firms that seek special interest legislation that make the firms better off are

A) examples of rent seeking.

B) illegal.

C) the result of the voting paradox.

D) irrational because elected officials will almost always act in the interest of the voters who have to pay the cost of the legislation. 

50) Congressman Flack votes for a program that will benefit the constituents of Congressman Walpole. Which of the following explanations for Flack’s vote is most consistent with the public choice model?

A) Congressman Flack did not have time to read and understand all of the legislation he voted on. Members of Congress often depend on their staffs to read proposed legislation and recommend how they should vote.

B) Legislators such as Congressman Flack are similar to other decision-makers in that they sometimes make irrational choices.

C) Congressman Flack will support programs of legislators from his own party, regardless of who benefits from these programs. 

D) Congressman Flack expects Congressman Walpole’s support for programs that will benefit Flack’s constituents.