37.	Which of the following would not be a Pareto superior move?
	a. A market exchange.
	b. A group that unanimously decides to undertake an activity.
	c. A group that decides by majority rule to undertake an activity.
	d. A contingent contract for a group to undertake an activity at some time in the future.
38.	Which of the following is not a negative externality?
	a. smog
	b. noise pollution
	c. substandard housing
	d. majority voting
39.	Political decisions will be _____ only if the decision was approved by _____.
	a. Pareto improvements; a unanimous vote
	b. in the public interest; a majority vote
	c. Pareto improvements; a majority vote
	d. undertaken; a unanimous vote
40.	A unanimity rule for collective decision making has the disadvantage of _____.
	a. accepting too many inefficient outcomes
	b. high decision-making costs
	c. not clearly being a Pareto improvement
	d. increasing external costs
41.	Which of the following is not true of collective decision-making costs?
	a. They impede collective action.
	b. They are the reason why unanimity rule is not the optimal decision-making rule.
	c. They imply that simple majority rule is the optimal decision-making rule.
	d. They increase the closer the decision rule gets to unanimity.
42.	In the context of collective decision-making, external costs are _____.
	a. the costs imposed on everyone in the group
	b. the costs imposed on those outside the group
	c. the costs imposed on those who voted for the decision
	d. the costs imposed on those harmed by the decision
43.	With a unanimity decision-making rule, external costs are _____.
	a. zero
	b. indeterminate
	c. high
	d. minimized

44.	The median voter theorem examines the outcome of majority rule decisions and _____.
	a. concludes that the outcome will be the one preferred by the median voter
	b. assumes that the outcome will be determined by the median voter
	c. uses the median voter to analyze the decision-making of bureaucrats
	d. found that the median voter has no role in political decision-making