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Pregunta 1
Pregunta
Which of the following are potential problems with direction and managing government?
Respuesta
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The government's massive size and scope
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Politicians aren't as intelligent as the rest of society
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It is difficult for the government to effectively aggregate information from bottom to top
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Answer A and C are correct
Pregunta 2
Pregunta
What is the correct criterion in evaluating government programs?
Respuesta
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The size of government: A larger government provides more goods.
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The size of government: A smaller government has lower taxes.
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By comparing the marginal benefit to the marginal cost of the government program. If the marginal benefit exceeds the marginal cost this is an efficient program.
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By comparing the marginal benefit to the marginal cost of the government program. If the marginal cost exceeds the marginal benefit this is and efficient program.
Pregunta 3
Pregunta
An unfunded liability for a government program implies that:
Respuesta
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projected government expenditure exceeds projected government revenue for the program
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the government program is self-sustaining
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projected government revenue exceeds projected government expenditure for the program
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the government has yet to establish the program
Pregunta 4
Pregunta
A special-interest issue is one whose passage yields:
Respuesta
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large private benefits compared to external benefits
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large external benefits compared to private benefits
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small economic losses to a small number of people and large economic losses to a large number of people
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large economic gains to a small number of people and small economic losses to a large number of people
Pregunta 5
Pregunta
politicization of fiscal and monetary policy refers to:
Respuesta
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The use of fiscal and monetary policy to help foreign government
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Is the primary reasons for public sector efficiency
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The use of fiscal and monetary policy to help politicians before an election
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Creates the opportunity for the fallacy of limited decisions
Pregunta 6
Pregunta
Which of the following is the most likely cause of unfunded liabilities?
Respuesta
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The cost of the program is immediate while the benefit is in the distant future.
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The benefit of the program is immediate while the cost is in the distant future.
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Politicians are helping as many people as they can.
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Voters prefer taxes now rather than in the future.
Pregunta 7
Pregunta
It is often argued that government laws and regulations have unintended consequences. Which of the following is an unintended consequence of the 2010 healthcare reform law?
Respuesta
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Everyone will now have health insurance.
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Companies are now willing to employ more full-time workers.
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Companies are reducing full-time employees to part-time employees.
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Insurance markets are now more efficient.
Pregunta 8
Pregunta
The concept of limited choices, as used in public choice theory, refers to the fact that:
Respuesta
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Politicians may not be objective in evaluating economic policy programs
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Because of the importance of television and other modern communication techniques, the best and brightest candidates may not be selected by voters
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Voters must select a candidate who represents a "bundle" of various public policy programs and who can't register support or opposition for specific programs
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The most economically efficient public policy program may not be selected because political leaders do not know enough about economics
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