Question : 11) The voting paradox suggests that the “voting market,” as : 1388007

11) The voting paradox suggests that the “voting market,” as represented by elections,

A) leads to a superior outcome in representing consumer preferences compared to the private market for goods and services.

B) may often lead to an inefficient outcome in representing consumer preferences compared to the private market for goods and services.

C) is no different from the private market for goods and services in terms of representing consumer preferences.

D) may not lead to an efficient outcome but certainly leads to a more equitable outcome in terms of distributing goods and services.

12) What is the voting paradox?

A) the observation that less than 60 percent of those eligible to vote actually vote

B) the observation that majority voting may not always result in consistent choices

C) the idea that wealthy corporations are able to sway politicians to act in ways contrary to the desires of the majority

D) People are aware that their votes will not change the political outcome since these outcomes are predetermined by a group of influential politicians.

13) The median voter theorem states that the outcome of a majority vote

A) tends to favor the preferences of high income individuals and ignore the median voter.

B) is likely to represent the preferences of society’s middle-income voter.

C) is likely to represent the preferences of the voter who is in the political middle.

D) is determined by the average consumer and producer in an economy.

14) The Arrow impossibility theorem states that

A) no system of voting can be devised that will always consistently represent the underlying preferences of voters.

B) it is impossible for a majority voting system not to consistently represent the preferences of voters.

C) it is impossible to separate corporate desires from public bureaucracy.

D) no system of voting can be devised that will ensure a 100 percent voter turnout.

15) The median voter theorem will be an accurate predicator of the outcomes of elections

A) only when voter turnout is very high.

B) when a majority of voters have preferences very similar to those of the median voter.

C) when a majority of voters have preferences different from those of the median voter.

D) regardless of whether preferences among voters are similar or different from those of the median voter.

16) Why is a typical person likely to gather more information when buying a new car than when voting for a member of Congress?

A) because a person’s preferences are more likely to be met with little effort in the political sphere, but this is not the case when buying a car in the private marketplace

B) because it is less costly to acquire information about consumer items than it is about political candidates

C) because buying a new car affects a person more immediately and personally compared to voting for a member of Congress; in the latter, a person’s vote is only one of many voters and therefore, not likely to have a large impact on the outcome

D) because the effects of buying a car are long term while a member of Congress has a relatively short tenure

17) The median voter model implies that

A) many people will be satisfied with the amount of spending on government funded projects.

B) many people will be dissatisfied with the amount of spending on government funded projects.

C) people in the political middle will be dissatisfied with the amount of spending on government funded projects.

D) spending on government funded projects reflects the preferences of only those far away from the median.

18) Which of the following is not an example of rent-seeking behavior?

A) competition for subsidies

B) lobbying the government to impose tariffs on certain imported products

C) competition for the exclusive right to import a product

D) engaging in aggressive advertising that slams a competitor’s product

19) Which of the following statements about rent seeking is false?

A) Rent seeking often involves governments because governments transfer huge amounts of funds that economic agents must compete for.

B) A person is engaging in rent seeking behavior when he uses the political process to acquire ownership of a resource that belongs to the public.

C) Because rent seeking redistributes society’s resources, anyone engaging in such behavior is violating the law.

D) If a firm can benefit from government intervention in the economy, it is more likely to spend resources attempting to secure this intervention than toward innovating its product to gain a competitive edge in the market.

20) A situation where a member of Congress votes to approve a bill in exchange for favorable votes from other members on other bills is called

A) rent seeking.

B) logrolling.

C) regulatory capture.

D) special interest legislation.