1.The attempt by various groups in society to get laws enacted that favor their group at the expense of everyone else

bureaucratic inefficiency

rent seeking behavior

winner take all political markets

democracy

Question 2

Planting flowers in a neighborhood increases health because more people become active and decreases crime. This is an example of

positive externalities

benefits of specialization

asymmetric information

free rider effects

Question 3

A rich kid who drives a car dangerously because they know their parents will get them a new one is an example of

moral hazard

asymmetric information

adverse selection

tragedy of commons

Question 4

Reason why voters may not pick the right amount of government

all of the above

they lack information about relevant issues

they cannot control easily the actions of the elected

they vote in their interest, rather than society's

Question 5

Reason why a politician cannot perfectly represent you

limited and bundled choice

rent seeking behavior

inefficient bureaucracy

tragedy of commons

Question 6

A negative externality leads to

cheaper prices and overproduction benefitting the first and second party

spillover benefits

lower costs for third parties

free rider problems

Question 7

Median voter model says that the candidate who will win is the one who

best represents the issues important to the average voter

gets more people to move to the median

best portrays their issues to the median voter

gets more of their political party to vote

Question 8

When a resource is overused because too many people have a right to use the resource

Asymmetric Information Problem

Moral Hazard Problem

Principal Agent Problem

Tragedy of the Commons

Question 9

Most often used example of a negative externality

vaccines

free rider problem

tragedy of commons

pollution

Question 10

A mechanic who does unnecessary work on a car and overcharges is an example of

Asymmetric Information

Adverse Selection

Tragedy of Commons

Moral Hazard