Multiple Choice Questions
1. The ability to pay principle states:
a. Those with the greatest ability to pay taxes should pay more.
b. Those with the least ability to pay taxes should pay more.
c. Individuals receiving the benefits should pay for them.
d. All of the above are true.
2. The amount of information that is necessary to make an efficient choice is generally _________ in the public sector than in the private sector.
a. Less
b. More
c. The same
d. None of the above is true.
3. Voters will tend to be _________ informed about their political choices than their private market choices, other things being equal.
a. More
b. Equally
c. Less
d. Any of the above are equally likely to be true.
4. The median voter result implies that
a. Elections will often be very close.
b. Elections will usually be landslides for the same party year after year.
c. Elections will usually be landslides, with victories alternating between parties each year.
d. When the preferences of most voters change substantially, winning political positions will also tend to change.
e. Both a and d are true.
5. For a voter to become more informed on a political issue is likely to have _________ benefits and _________ costs than for similar market decisions, other things being equal.
a. Smaller; larger
b. Smaller; smaller
c. Larger; larger
d. Larger; smaller
6. Which of the following would tend to raise voter turnout?
a. A blizzard or heavy rainstorm on election day
b. An election that is expected to be a landslide
c. The longer the wait is expected to be at the voting locations
d. A feeling that the candidates are basically running on the same platforms
e. None of the above would tend to raise voter turnout.
7. If there are far fewer sugar growers than sugar consumers,
a. The growers are likely to be more informed and influential on policy than voters.
b. The consumers are likely to be more informed and influential on policy than voters.
c. Individual sugar growers are likely to have more at stake than individual sugar consumers.
d. Individual sugar consumers are likely to have more at stake than individual sugar growers.
e. A is likely to be true because c is likely to be true.