Finish Economics Chapter 5 assignment

Which of the following is NOT a benefit of government being able to force people to do things?

Identifying inefficient government policies

The special interest effect can be caused by

a small number of people advocating for and benefiting from a program from which they benefit at the expense of a much larger group of people

Chronic budget deficits can

1. Result in an over-allocation of resources to the public sector, resulting in economic inefficiency. 2. Result in an under-allocation of resources to the private sector, resulting in economic inefficiency.

Which of the following is NOT an example of political corruption?

A building permit is issued to a friend of a building inspector

Social security is an example of

An unfunded liability

A certain project has an expected cost more than its expected benefit, but it is popular and the benefits are immediate, while the costs are paid out over time. Therefore politicians may choose to

Approve it because they will face re-election before the costs are apperent

________________ failure refers to economically inefficient outcomes caused by shortcomings in the public sector.

Government

In a debt crisis,

Investors lose confidence in the ability of the government to repay its debts, resulting in the inability of the government to borrow

Which of the below is an example of a way the government coerces individuals to do things?

Putting someone in jail who does not pay his taxes.

Private businesses are often more efficient than public agencies because

Private businesses are motivated by profit which encourages lower costs

Which of the following is not an example of inefficient intervention in the private market?

Requiring children to wear helmets when riding a bicycle

A voter may vote for a candidate with whom they disagree about an issue because

The candidate's stand on the other issues more closely aligns with the voter's preferences than do other candidates' stands

Both private and public institutions are _____________.

imperfect

Which of the following is not rent-seeking behavior?

increases on income taxes

The special interest effect is evident in

pork barrel projects and earmarks

Monetary policy attempts to

use changes in interest rates to regulate the economy

Fiscal policy attempts to

use changes in taxation and spending levels to offset the business cycle