Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Even in a democratic government, elected officials may end up pursuing policiesthat go against the preferences of the people due to the following reasons, except
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Matt, Joe, and Teresa are the only citizens in a community.A proposed public good has a total cost of $1,000. All three citizens willshare an equal portion of thiscost in taxes. The benefit of the publicgood is $500 for Matt, $280 for Joe, and $260 for Teresa.In a majorityvote, this proposal will most likelybe
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Matt, Joe, and Teresa are the only citizens in a community.A proposed public good has a total cost of $1,000. All three citizens willshare an equal portion of thiscost in taxes. The benefit of the publicgood is $500 for Matt, $280 for Joe, and $260 for Teresa.In a majorityvote, this proposal will most likelybe
A. accepted; the public good is produced, even though it is economically inefficient.
B. defeated; the public good is not produced,even though it would have been efficient to do so.
accepted; the public good is produced, which is economically efficient.
defeated; the public good is not produced, which is the proper outcome.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Matt, Joe, and Teresa are the only citizens in a community.A proposed public good has a total costof $1,000. All three citizens will share an equal portion of thiscost in taxes. The benefitof the public good is $ 380 for Matt, $ 360 for Joe, and $ 200 forTeresa. In a majorityvote, this proposal will most likely be
A. accepted; the public good is produced, even though it is economically inefficient.
defeated; the public good is not produced, even though it would have been efficient to do so.
accepted; the public good is produced, which is economically efficient.
defeated; the public good is not produced, which is the proper outcome.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Abby, Ben, and Clara are the only citizens in a community.A proposed public good has a total cost of $1,000. Allthree citizens will share an equal portion of this costin taxes. The benefitof the public good is $400 each to Abby, Ben, and Clara. In a majorityvote, this proposal will most likely be
accepted; the public good is produced, even though it is economically inefficient.
defeated; the public good is not produced, even though it would have been efficient to do so.
C. accepted; the public good is produced, which is economically efficient.
D. defeated; the public good is not produced, which is the proper outcome.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Abby, Ben, and Clara are the only citizens in a community.A proposed public good has a total cost of $1,000. Allthree citizens will share an equal portion of this costin taxes. The benefitof the public good is $400 each to Abby, Ben, and Clara. Based on economicanalysis, the public good should
A. be produced, because the benefits are greater than the costs.
not be produced, because the costs are greater than the benefits.
be put to a vote and produced only if votersapprove it.
not be produced, even if voters vote in favor of it.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community.A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this costin 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 majorityvote, this proposal will most likely be
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community.A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this costin 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?
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community.A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this costin 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 majorityvote, this proposal will most likely be
A. accepted; the public good is produced, even though it is economically inefficient.
defeated; the public good is not produced, even though it would have been efficient to do so.
accepted; the public good is produced, which is economically efficient.
defeated; the public good is not produced, which is the proper outcome.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Public GoodVoter XVoter YVoter ZStadium231Park123Jail312
264.
Refer to the provided table, which shows the ranked preferences of votersfor three alternative projects, with "1" being the top preference. In a paired-choice vote between a stadiumand a park,
A. a majority of the voters would favor the park, 2-to-1.
a majorityof the voters would favor the stadium, 2-to-1.
a majorityof the voters would favorthepark, 3-to-0.
a majorityof the voters would favor the stadium, 3-to-0.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Public GoodVoter XVoter YVoter ZStadium231Park123Jail312
265.
Refer to the provided 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,
A. a majority of the voterswould favor the jail, 2 to 1.
B. a majority of the voters would favor the stadium, 2 to 1.
a majorityof the voters would favor the jail, 3 to 0.
a majorityof the voters would favor the stadium, 3 to 0.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Public GoodVoter XVoter YVoter ZStadium231Park123Jail312
266.
Refer to the provided table, which showstheranked preferences of voters forthree alternative projects, with "1" being the top preference. In a paired-choice vote between a park and a jail,
a majorityof the voters would favor the jail, 3 to 0.
a majorityof the voters would favor the park, 3 to 0.
C. a majority of the voterswould favor the jail, 2 to 1.
D. a majority of the voterswould favor the park, 2 to 1.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Public GoodVoter XVoter YVoter ZStadium231Park123Jail312
267.
Refer to the provided table, which shows the ranked preferences of voters forthree alternative projects,with "1" being the top preference. This situation illustrates the voting inconsistency where a majorityof voters prefer the
stadium over the park, the park over the jail, and the jail over the stadium.
park and jailover the stadium, and the jail overthe park.
C. stadium over the jail, the jail overthe park, and the park over the stadium.
D. stadium and jail over the park, and the park over the jail.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Voters are making a choice to spend money on three projects: a dam, a school,or a road. In the choice betweenthe dam and theschool, the majorityfavors the school. In a choicebetween a dam and a road, the majority favors a dam. In a choicebetween a road and a school,the majority favors a road. These rankings indicate that majority voting may
result in economically efficient outcomes because of rent-seeking behavior.
reflect irrational preferences.
C. produce inconsistent choices.
D. lead to consistent choices in spite of irrational community preferences.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
When politicians support policies such as imposing punitive tariffs on imports, which are popularamong voters but which also reduce economic efficiency, we refer to this as
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
It is observed that the person representing the middle positionon an issue will most likelydetermine the outcomeof an election.This view is most closelyassociated with the
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
As voters "vote with their feet" and move to political districts where the median voter's preference is closerto their own, the median voter'spreference will
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Majority voting on whether or not a public good should be producedcould lead to a result where a publicgood whose costs are bigger than the benefits would end up getting approvedby the voters.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
Special-interestgroups result from peoplewith strong preferences on a particular issue banding together to let policymakers know their preferences and could thereby lead to efficientoutcomes.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
If choice A wins over choice B in a majority vote, while choice B wins overchoice C in a majority vote, then we can conclude that choice A would win overchoice C.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
In the median-voter model, half the voters have stronger or more positivepreferences than the median voter, while half of the voters have weaker or more negative preferences.
Learning Objective: 05-03 Appendix: Explain the difficulties of conveying economic preferences through majorityvoting.
Test Bank: II Topic: Public Choice Theory and Voting Paradoxes
One implication of the median-voter model, as applied to a vote regardinghow much government involvement to have in the economy, is that most voterswould find the resulting government involvement either too large or too small.