A.
always increases economic efficiency.
111.
The trading of votes by elected officials to secure favorable outcomes is called
112.
Senator A agrees to vote for Senator K’s state project in exchange for Senator K voting for
Senator A’s state project. This is an example of
5-42
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written consent of McGraw-Hill Education.
preferences through majority voting.
Test Bank: I
Top ic:
Public Choice Theory and Voting Paradoxes
113.
A situation in which society may not be able to rank its preferences consistently through
paired-choice majority voting refers to
114.
The principle that under some circumstances majority voting fails to make consistent
choices reflecting the community‘s underlying preference is best demonstrated by the
115.
According to the paradox of voting,
5-43
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written consent of McGraw-Hill Education.
D. majority voting fails under some circumstances to make consistent choices that reflect the
community’s underlying preferences.
116.
Suppose that in a series of paired-choice votes, a new park is preferred to a new recreation
center and a new recreation center is preferred to street widening. Also suppose that street
widening is preferred to a new park. This set of votes is an
example of the
117.
Public Good
Larry
Curley
Moe
Lighthouse
Third Choice
First Choice
Second Choice
Highway
Second Choice
Third Choice
First Choice
Submarine
First Choice
Second Choice
Third Choice
Refer to the table. In a choice between the highway and the lighthouse,
5-44
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written consent of McGraw-Hill Education.
C.
the voters are indifferent between the two.
D.
no voter decision is possible.
118.
Public Good
Larry
Curley
Moe
Lighthouse
Third Choice
First Choice
Second Choice
Highway
Second Choice
Third Choice
First Choice
Submarine
First Choice
Second Choice
Third Choice
Refer to the table. The inconsistency illustrated by the table is that, while a majority of voters
prefer the
D.
lighthouse to the submarine and the highway to the submarine, they also prefer the highway to
the lighthouse.
119.
Public Good
Larry
Curley
Moe
Lighthouse
Third Choice
First Choice
Second Choice
Highway
Second Choice
Third Choice
First Choice
Submarine
First Choice
Second Choice
Third Choice
The information contained in the table illustrates
120.
Public Good
Adam
Bob
Carl
Public Safety
Second Choice
Third Choice
First Choice
Parks
First Choice
Second Choice
Third Choice
Education
Third Choice
First Choice
Second Choice
Refer to the table. In a choice between public safety and parks,
121.
Public Good
Adam
Bob
Carl
Public Safety
Second Choice
Third Choice
First Choice
Parks
First Choice
Second Choice
Third Choice
Education
Third Choice
First Choice
Second Choice
Refer to the table. In a choice between parks and education,
122.
Public Good
Adam
Bob
Carl
Public Safety
Second Choice
Third Choice
First Choice
Parks
First Choice
Second Choice
Third Choice
Education
Third Choice
First Choice
Second Choice
Refer to the table. In a choice between education and public safety,
5-47
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written consent of McGraw-Hill Education.
Blooms: Understand
Di ff ic ul ty:
02 Medium
Learning Objective: 05–03 Appendix: Explain the difficulties of conveying economic
preferences through majority voting.
Test Bank: I
Top ic:
Public Choice Theory and Voting Paradoxes
123.
Public Good
Adam
Bob
Carl
Public Safety
Second Choice
Third Choice
First Choice
Parks
First Choice
Second Choice
Third Choice
Education
Third Choice
First Choice
Second Choice
Refer to the table. The outcomes of the three possible sets of paired-choice majority votes
illustrate the
124.
The median-voter model implies that
5-48
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written consent of McGraw-Hill Education.
Test Bank: I
Top ic:
Public Choice Theory and Voting Paradoxes
125.
The median-voter model implies that a political office seeker will
126. Answer the question on the basis of the following table that shows the total costs and total
benefits facing
Stadium
Total Cost
Total Benefit
A
$ 80
$140
B
100
200
C
130
250
D
165
290
E
220
300
a city of five different potential baseball stadiums of increasing size. All figures are in millions
of dollars.
Suppose a five-person city council must decide via majority voting which of these stadiums to
build. Also suppose that each of the stadium sizes has the support of one council member.
According to the median-voter model, the council will
ultimately vote in favor of stadium
5-49
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written consent of McGraw-Hill Education.
D. D.
127. Answer the question on the basis of the following table that shows the total costs and total
benefits facing a city of five different potential baseball stadiums of increasing size. All figures
are in millions of dollars.
Stadium
Total Cost
Total Benefit
A
$ 80
$140
B
100
200
C
130
250
D
165
290
E
220
300
128. Answer the question on the basis of the following table that shows the total costs and total
benefits facing a city of five different potential baseball stadiums of increasing size. All figures
are in millions of dollars.
Stadium
Total Cost
Total Benefit
A
$ 80
$140
B
100
200
C
130
250
D
165
290
E
220
300
Based on cost-benefit analysis, the city should
129. Answer the question on the basis of the following table that shows the total costs and total
benefits facing a city of five different potential baseball stadiums of increasing size. All figures
are in millions of dollars.
Stadium
Total Cost
Total Benefit
A
$80
$140
B
100
200
C
130
250
D
165
290
E
220
300
Applying the median-voter model and assuming that there are equal numbers of voters
supporting each stadium, we would expect
5-51
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di ff ic ul ty:
02 Medium
Learning Objective: 05–03 Appendix: Explain the difficulties of conveying economic
preferences through majority voting.
Test Bank: I
Top ic:
Public Choice Theory and Voting Paradoxes
130.
Suppose three roommates cannot agree on the size of a pizza to order. Domino argues for a
medium pizza, Godfather contends a large pizza will be needed, and Little Caesar wants a
131.
Some people argue that the three main television networks all have similar programming. If
132.
Suppose that friends Jennifer, Stephanie, and Megan cannot agree on how much to spend
for a bouquet of flowers to send to a person who allowed them to use her beach house for the
weekend. Jennifer wants to buy a moderately priced
bouquet, Stephanie wants to buy an
expensive bouquet, and Megan wants to buy a very expensive bouquet. Assuming no paradox of
voting, majority voting will result in the decision to buy
133. Suppose a college economics department decides to use a single economics text for all
sections of principles of economics. Also assume that the three individual members of the
textbook selection committee have the following preferences.
Professor
Ideal
Textbook
Analytical Level of
the
Textbook
Adams
C/F
Very Difficult
Bennett
M/B
Moderately Difficult
Clay
O/S
Relatively Easy
Assuming all other textbook qualities except analytical level are the same, paired-choice
majority voting will result in the committee
5-53
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written consent of McGraw-Hill Education.
preferences through majority voting.
Test Bank: I
Top ic:
Public Choice Theory and Voting Paradoxes
134.
“Pork-barrel” legislation that contains funding for hundreds of earmarks throughout
numerous states often reflects
135.
(Consider This) Voter failure describes the situation where
A.
an insufficient number of voters turn out to express their preferences.
136.
(Consider This) Suppose voters pass laws that restrict immigration, which results in lower
national output and higher prices for consumer goods. This would be an example of
137.
(Consider This) Which of the following is an example of voter failure?
C.
Voters wanting greater highway safety are unable to express their preferences on how to
achieve it because the voting system doesn’t allow it.
D.
Voters wanting more government services are divided on what services they most prefer,
leaving government officials to determine what is best.
138.
Logrolling can either increase or diminish economic efficiency.
5-55
139.
Even if a majority of the population wants a law and the law is passed, the outcome may
still be economically inefficient.
140.
The paradox of voting is that under majority voting rules, the median voter decides the
election outcome.
141.
Majority voting assures that government will provide a public good if it yields total
benefits in excess of total costs.
142.
In the U.S. market economy, the government performs the following prominent roles,
except
143.
One major role that the government plays in the market economy of the U.S. is
144.
One key difference between government activities and private transactions is that
145.
The ability to impose fines, revoke licenses, and put people into jail allows the government
to
146.
Government’s ability to force people to do things involuntarily is
5-58
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written consent of McGraw-Hill Education.
Topic:
Governments Economic Role
147.
In a market economy, the government’s ability to coerce is beneficial in the following cases,
except in
148.
Government in a market system can increase economic efficiency by collecting taxes in
order to subsidize the production of
149.
Government can use its ability to coerce toward improving economic efficiency by
150.
Making blackmail, extortion, and other forms of private coercion illegal is one way that
government
151.
Government can raise economic efficiency through all of the following policies, except
5-60
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written consent of McGraw-Hill Education.
Topic:
Governments Economic Role
152.
In a market economy, private parties are more willing to do transactions when they know
that the government is able to
153.
Government’s ability to reduce private-sector economic risks through laws and regulations
would encourage all of the following, except