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Chapter 05 Government's Role and Government Failure Answer Key
Multiple Choice Questions
1.
In the U.S. market economy, the government performs the following prominent roles,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Economic Role
2.
One major role that the government plays in the market economy of the U.S. is:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Economic Role
3.
One key is difference between government activities and private transactions is that:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
4.
The ability to impose fines, revoke licenses, and put people into jail allows the government
to:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
5.
Government's ability to force people to do things involuntarily is:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
6.
In a market economy, the government's ability to coerce is beneficial in the following
cases,
except
in:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
7.
Government in a market system can increase economic efficiency by collecting taxes in
order to subsidize the production of:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
8.
Government can use its ability to coerce towards improving economic efficiency by:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
9.
Making blackmail, extortion, and other forms of private coercion illegal is one way that
government:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
10.
Government can raise economic efficiency through all of the following policies,
except
:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
11.
In a market economy, private parties are more willing to do transactions when they know
that the government is able to:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
12.
Government's ability to reduce private-sector economic risks through laws and regulations
would encourage all of the following,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
13.
Refer to the graph above. Suppose that its shows the S and D graphs in a market where
production entails a significant amount of pollution. In this case, the government should
use its coercive power to make:
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
14.
Refer to the graph above. Suppose that its shows the S and D graphs in a market where
the product has all the characteristics of a public good. In this case, the government
should use its coercive power to make:
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
15.
Refer to the graph above. Suppose that its shows the S and D graphs in a market where
usage of the product generates a lot of external benefits. In this case, the government
should use its coercive power to make:
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
16.
The difficulties in managing government in a market economy include the following,
except
:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
17.
Government laws and policies need to be uniformly enforced. But this leads to all of the
following problems,
except
:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
18.
The information-aggregation problem faced by the top layers of government can make it
hard for the high-level officials to:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
19.
Even in democratic governments, we tend to have a problem with accountability due to the
following reasons,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
20.
In assessing the efficiency of government policy, economic analysis would focus on:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
21.
The term
government
failure
refers to the:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
22.
The principal-agent problem refers to the problem of:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
23.
The situation where politicians make decisions that will raise their chances of reelection,
even if those decisions are detrimental to the general public, is referred to as the:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
24.
In the corporate world of business, the principal-agent problem arises between:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
25.
Which statement best describes a special-interest issue?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
26.
The special-interest effect is significant because:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
27.
The situation where "the few who yell the loudest gets heard" is referred to as the:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
28.
The so-called pork-barrel politics refers to congressional members:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
29.
Rent-seeking behavior in public choice theory refers to:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
30.
The so-called collective action problem refers to the:
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
31.
The so-called collective action problem is the reason why:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
32.
Lobbying actions that seek government legislation to provide tax breaks to specific
corporations would be an example of:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
33.
Politicians seeking reelection tend to do the following,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
34.
Politicians who have to go through elections tend to focus on the short-term net benefits
of projects because of:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
35.
"Unfunded liability" refers to a government commitment to:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
36.
The government's budget deficit refers to the:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
37.
To make up for a shortfall in its annual budget, the government must:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
38.
The government adds to its overall public debt whenever it:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
39.
The government would be running a budget surplus if:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
40.
Many governments end up with chronic budget deficits because:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
41.
The public (or national) debt refers to the:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
42.
Chronic budget deficits can lead to all of the following,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
43.
Many state and local governments in the U.S. have balanced-budget laws in order to
prevent politicians from:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
44.
All of the following are consequences of a government's having to deal with a "debt crisis",
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
45.
In the U.S., the Federal government runs a chronic budget deficit, whereas many state and
local governments do not, because:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
46.
So-called business cycles refer to the multi-year periods:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
47.
Governments try to smooth business cycles by using these policies,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
48.
Monetary policy refers to the government's attempt at smoothing business cycles through
the use of changes in:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
49.
Fiscal policy refers to the government's attempt at regulating the economy through the use
of changes in:
AACSB: Analytic
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
50.
During a period when output and employment is falling, the government will try to:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
51.
When monetary policy becomes highly politicized, the policy tends to:
AACSB: Analytic
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
52.
To prevent monetary policy from becoming highly politicized, many countries have:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
53.
The concept of limited and bundled choice, as used in public choice theory, refers to the
fact that:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
54.
In presidential elections, voters often find that they do not agree with any single candidate
on all the issues that matter to them (the voters). This is known as the:
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
55.
Some economists contend that government agencies are generally less efficient than
private businesses due to the following reasons,
except
:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
56.
The 2010 health-care reform law commonly known as Obamacare required large
companies to provide costly health insurance to their full-time workers. In response, some
large companies started preferring to employ part-time workers rather than full-time
employees. This is an example of:
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
57.
"Regulatory capture" refers to the situation where a government agency charged with
supervising and regulating a particular industry is:
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
58.
One primary reason why regulatory capture may occur in an industry is that:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
59.
Deregulation can solve the problem of regulatory capture and increase economic
efficiency:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
60.
Loan guarantees provided by the government for specific private-sector investments tend
to:
AACSB: Analytic
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
61.
When the government provides loan guarantees and in effect "socializes losses and
privatizes gains" of a project or firm, it can lead to a:
AACSB: Analytic
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
62.
The provision of loan guarantees can improve economic efficiency when:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
63.
In which of the following cases has political corruption definitely occurred?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
64.
Which of the following countries had the least corruption, as reported in the Global
Corruption Barometer for 2010-11?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
65.
Political corruption occurs in the following instances,
except when
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
66.
What is a likely explanation for why the budget of a government agency might increase
beyond its optimal size?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Inefficient Regulation and Intervention
True / False Questions
67.
The government's ability to coerce people to do things is always detrimental to the
achievement of economic efficiency.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
68.
In order to achieve economic efficiency in market economies like the U.S., the government
must be stripped of its power to coerce.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: Government's Right to Coerce
69.
If the government implements regulations and policies in the economy, it tends to replace
the function of the "invisible hand."
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
70.
In making sure that laws are uniformly enforced and applied, one consequence is that
government creates inflexibility.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
71.
As long as government officials have to be elected, they are always held accounted for
their policy decisions and choices.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
72.
Economic analysis would focus on the size of the government, in order to assess whether
or not it fosters economic efficiency.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-01 Describe how government's power to coerce can be economically beneficial and list some of
the difficulties associated with managing and directing the government.
Topic: The Problem of Directing and Managing Government
73.
It is generally believed that, because of the election process, the incentives and pressures
for internal efficiency are stronger in the public sector than in the private sector.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
74.
Critics of government contend that the market system creates incentives and pressures
for internal efficiency which are absent in the public sector.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
75.
"Good economics" is about marginal costs and marginal benefits of specific projects;
"good politics" is more about clear benefits and hidden costs.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
76.
The "principal-agent problem" often arises in public choice when politicians pursue the
best interests of their constituents.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
77.
In thinking about the "principal-agent problem" in a democratic government, we assign the
role of "principal" to the government.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
78.
The special interest effect in government is the reason why firms in some industries are
willing to pay huge amounts of money to lobbyists.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
79.
When the special-interest effect is the major reason for the passage of a government
policy or project, then economic efficiency will always improve.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
80.
The "pork" in
pork-barrel politics
refers to government projects that politicians try to
secure in favor of the common good for the whole nation.
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
81.
Nobody gains from pork-barrel politics other than the politicians.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
82.
Pork-barrel politics is a very good illustration of the "clear benefits, hidden costs"
perspective of politicians.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
83.
Unfunded liabilities are one consequence of the preference for "clear benefits, hidden
costs" by politicians.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
84.
Unfunded liabilities occur when the government considers long-term benefits and costs of
projects, and approves only those with positive long-term net benefits.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
85.
A budget deficit will require the government to issue bonds to fill in the gap in the budget.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
86.
A budget deficit is another name for the public debt.
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
87.
If the government runs a smaller budget deficit, then the public debt will decrease.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
88.
Only politicians, not the voters, are to blame for the problem of chronic budget deficits that
many nations face.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
89.
Voters' preference for having government programs serve them is inherently in conflict
with their preference to pay no taxes.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
90.
Monetary and fiscal policies are tools that the government can use to try to stabilize the
economy.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
91.
The politicization of monetary and fiscal policies tends to enhance their effectiveness in
stabilizing the economy.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
92.
Because of the so-called "bundled choice" problem, voters often vote for candidates that
they are not entirely happy with.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
93.
The collective action problem is the reason why there are no lobbyists representing the
interest of general taxpayers or consumers in Washington, DC.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
94.
The collective action problem makes it hard for voters to counter the influence of special-
interest groups.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
95.
Unintended consequences can result from the government's desire to enforce laws
uniformly.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
96.
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.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
97.
Deregulation of an industry will always lead to an improvement in economic efficiency.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
98.
Loan guarantees provided by government will reduce the willingness of investors to take
on the risk in a project.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
99.
"Informal payments" or "under-the table fees" are a common form of corruption.
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
100.
The U.S. is among the countries that have very low levels of political corruption, as
reported in the Global Corruption Barometer of 2010-11.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Government Failure
Multiple Choice Questions
101.
The study of public choice theory involves the economic analysis of the following,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Public Choice Theory
102.
Problems with collective decision-making and economic inefficiency in government are
subjects that are studied in an area of economics called public:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Public Choice Theory
103.
In the U.S., society makes decisions on the direction of government policies and the
provision and financing of public goods through a process that relies heavily on:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Public Choice Theory
104.
Even in a democratic government, elected officials may end up pursuing policies that go
against the preferences of the people due to the following reasons,
except
:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Public Choice Theory
105.
Majority voting fails to incorporate the strength of the preferences of individual voters, and
therefore:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
106.
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:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
107.
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:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
108.
Assume that Abby, Ben, and Clara 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 $400 each to Abby, Ben, and Clara. In a majority
vote, this proposal will most likely be:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
109.
Assume that Abby, Ben, and Clara 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 $400 each to Abby, Ben, and Clara. Based on
economic analysis, the public good should:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
110.
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A
proposed public good has a total cost of $1000. All five citizens will share an equal portion
of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to
Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
111.
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A
proposed public good has a total cost of $1000. All five citizens will share an equal portion
of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to
Clara, $180 to Joe, and $120 to Matt. Who are likely to vote in favor of this proposal?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
112.
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A
proposed public good has a total cost of $1000. All five citizens will share an equal portion
of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to
Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
113.
Majority voting may produce economically inefficient outcomes because it:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
114.
Interest groups result when people:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
115.
The trading of votes to secure favorable outcomes on decisions which would otherwise be
defeated is called:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
116.
Inefficiencies associated with majority voting may get resolved through:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
117.
Which of the following would be an avenue for resolving the inefficiencies associated with
majority voting?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
118.
Which would be an avenue for resolving the inefficiencies associated with majority
voting?
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
119.
A situation in which society may not be able to rank its preferences consistently through
paired-choice majority voting is:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
120.
The major problem with paired-choice majority voting is that the outcome:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
121.
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with "1" being the top preference. In a paired-choice vote between a
stadium and a park:
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
122.
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with "1" being the top preference. In a paired-choice vote between a
jail and a stadium:
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
123.
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with "1" being the top preference. In a paired-choice vote between a
park and a jail:
AACSB: Analytic
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
124.
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with "1" being the top preference. This situation illustrates the voting
inconsistency where a majority of voters prefer the:
AACSB: Analytic
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
125.
The sometimes inconsistent results coming from a series of paired-choice voting is due
to:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
126.
Voters are making a choice to spend money on three projects: a dam, a school, or a road.
In the choice between the dam and the school, the majority favors the school. In a choice
between a dam and a road, the majority favors a dam. In a choice between a road and a
school, the majority favors a road. These rankings indicate that majority voting may:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
127.
When politicians support policies such as imposing punitive tariffs on imports, which are
popular among voters but which also reduce economic efficiency, we refer to this as:
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
128.
It is observed that the person representing the middle position on an issue will most likely
determine the outcome of an election. This view is most closely associated with the:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
129.
When voters have different opinions about an issue, the position that is most likely to be
adopted is that of the:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
130.
The median-voter model indicates that political parties will:
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
131.
Assume that voters are asked to vote for either more police protection or more schools in
a community. More schools are likely to win if:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
132.
One implication of the median-voter model is that at any point in time, most voters will:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
133.
As voters "vote with their feet" and move to political districts where the median-voter's
preference is closer to their own, the median-voter's preference will:
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
True / False Questions
134.
Majority voting produces efficient outcomes because it takes into account the strength of
the preferences of individual voters.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
135.
Majority voting on whether or not a public good should be produced could lead to a result
where a public good whose costs are bigger than the benefits would end up getting
approved by the voters.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
136.
If a public good provides social benefits that are greater than its costs, then majority of
voters would always vote in favor of producing the good.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
137.
Special interest groups result from people with strong preferences on a particular issue
banding together to let policymakers know their preferences.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
138.
Political logrolling, or vote-trading, can turn a potentially inefficient voting outcome into an
efficient one.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
139.
If choice A wins over choice B in a majority vote, while choice B wins over choice C in a
majority vote, then we can conclude that choice A would win over choice C.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
140.
Political logrolling always produces economically inefficient outcomes.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
141.
The appeal to government for special benefits at taxpayers' or someone else's expense is
the paradox of voting.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
142.
Even if individual voters have clear preferences, and they stay consistent in their
preferences, we could still end up with the paradox of voting.
AACSB: Analytic
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
143.
One consequence of the paradox of voting is that whoever sets the agenda of a vote could
practically predetermine the results of the vote.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
144.
In the median-voter model, the median voter refers to the voter who makes her choice at
the midpoint of the voting period.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
145.
In the median-voter model, half the voters have stronger or more positive preferences than
the median voter, while half of the voters have weaker or more negative preferences.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
146.
One prediction of the median-voter model is that during elections, candidates will tend to
become "centrists".
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
147.
One implication of the median-voter model as applied to a vote regarding how much
government involvement to have in the economy is that most voters would find the
resulting government involvement either too large or too small.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting
148.
"Voter failure" is one cause of government failure.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 05-02 Discuss "government failure" and explain why it happens.
Topic: Revealing Preferences through Majority Voting