Chapter 6
Political Econom
1. Majority rule voting
A) requires a simple majority greater than half the voters. B) requires that rules of order be established. C) does not occur in democracies.
D) can only be applied to single issues. Ans: a
2. With multiple-peaked preferences,
A) a unique political equilibrium does not exist. B) all individuals have a point that is most preferred. C) the law of transitivity is violated. D) all of the above. Ans: d
3. Logrolling is
A) a system used often at lumberjack contests.
B) a system that will always lead to worthy projects getting funded. C) a system that involves the trading of votes.
D) a system that generally involves double-peaked preferences. E) all of the above. Ans: c
4. Rent seeking involves
A) finding reasonable rent rates.B) price floors.C) price ceilings.
D) citizen groups lobbying elected officials to manipulate government policy. E) none of the above.Ans: d
5. Special interest groups are established on the basis of A) sources of labor.B) size of income.
C) sources of income.D) region.E) all of the above. Ans: e
6. When each individual has consistent preferences, but those of the community are not consistent, it is known as
A) agenda manipulation.B) majority rule.C) voting paradox. D) logrolling.E) independence of irrelevant alternatives. Ans: c
7. In a representative democracy, there are
A) elected politicians.B) public employees.C) special interests.D) all of the above. Ans: d
8. A person prefers large and small levels of national defense to medium-sized levels of national defense. This person
A) is violating the law of transitivity.B) has single-peaked preferences.
C) has multiple-peaked preferences.D) can not achieve his or her most-preferred outcome. Ans: c
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