Question 1

With market-based incentives in government, rules and regulations will disappear.

Accepted Answer

Market-based incentives can encourage compliance with rules and regulations, but they do not make them disappear entirely. Instead, they create incentives to comply with regulations rather than relying solely on enforcement or punishment.

Question 2

Which of the following statements is true?

Accepted Answer

The lack of a profit motive in government agencies can lead to decisions being made on bases other than merit, such as political considerations or bureaucratic inertia, because there isn't the same direct financial incentive to optimize performance as in the private sector.

Question 3

Use the following set of preferences (table below) for Jon, Jeff, and Amy on travel options to show the paradox of voting.

Accepted Answer

The answer of Use the following set of preferences (table...

Question 4

Prior to the selling of the radio spectrum, frequency rights were obtained through

Accepted Answer

Before the selling of the radio spectrum, frequency rights were obtained through various means, including lobbying efforts, the granting of favors, the influence of politicians, and licensing processes.

Question 5

The table below shows the marginal benefit per year (in dollars) and the marginal cost per year (in dollars) of hiring additional police officers in a small community.

Accepted Answer

The answer of The table below shows the marginal benefit...

Question 6

A Republican candidate appeals to a very conservative group of voters in order to obtain his party's nomination for president. Explain why this tactic might cause this candidate to lose the presidential election.

Accepted Answer

The answer of A Republican candidate appeals to a very...

Question 7

Why do people in markets acting in their own self-interest tend to be efficient, whereas people in government acting in their own self-interest are not?

Accepted Answer

The answer of Why do people in markets acting in...

Question 8

It is hoped that productive efficiency will result from giving citizens vouchers rather than providing services through government agencies.

Accepted Answer

By giving citizens vouchers, they are able to choose the services they want from a variety of providers, which creates competition and incentives for providers to offer better services at lower prices, leading to productive efficiency. This system also reduces the bureaucracy and overhead costs associated with government agencies providing services directly to citizens.

Question 9

Many want to reform government by providing market-based incentives that aim to

Accepted Answer

The statement mentions "market-based incentives" to reform government, which implies using principles of the market to improve the efficiency of government. Therefore, the goal is to make government more efficient, making choice C the best option. The other choices (A, B, D, and E) do not align with the idea of market-based incentives to reform government.

Question 10

Affordable housing is seen as a way to reduce crime rates and raise the quality of life in lower-income neighborhoods.

Accepted Answer

The answer of Affordable housing is seen as a way...

Question 11

One possible reason for government inefficiency is that there is no profit motive in government to discipline government managers and employees.

Accepted Answer

In a profit-driven system, the incentive to perform well and efficiently is tied to financial rewards. In the government, the lack of profit motive can lead to a lack of accountability and discipline for managers and employees who underperform or mismanage resources.

Question 12

Why do special interest groups have a disproportionate amount of influence compared to voters in general?

Accepted Answer

The answer of Why do special interest groups have a...

Question 13

Suppose a local city constructs an expressway that provides better access to its downtown area. The project is financed by raising the community's property taxes. If you live in a nearby town but often visit that community's downtown area, are you a free rider? Why? What can the community do to eliminate the free-rider problem?

Accepted Answer

The answer of Suppose a local city constructs an expressway...

Question 14

Why does the median voter tend to control policy in a democratic system?

Accepted Answer

The answer of Why does the median voter tend to...

Question 15

Explain how research and development may yield external effects.

Accepted Answer

The answer of Explain how research and development may yield...

Question 16

What is government failure?

Accepted Answer

The answer of What is government failure?
...

Question 17

Consider two children, Janet and Joey, sharing the same room. Janet loves to play loud music while Joey does not like loud music. Suppose Janet is willing to pay Joey $2 to be allowed to play loud music, and Joey is willing to pay Janet $3 to keep the room quiet.

Accepted Answer

The answer of Consider two children, Janet and Joey, sharing...

Quiz 15: Public Goods, Externalities, and Government Behavior