Machiavelli and Public Choice There is nothing more threatening and dangerous than to exert leadership advocating for new rules of the game because innovation generates enemies among those who have been successful with existing rules and lukewarm defenders among those who would do well under the new rules. Machiavelli, The Prince (1469-1527). (J 1) Based on Machiavelli, consider the proposition for school choice, a new rule of the gam Who are the most likely potential enemies of allowing parents to choose the school for the offspring? a) The Judiciary. b) The Teachers Education Association. c) The students. (1) Ordinary citizens. 2) Following Machiavelli, who are the likely potential lukewarm defenders of the new ru proposed? a) The parents b) The Teachers Education Association c) Politicians (1) Average citizens 3) The paragraph by Machiavelli casts light on: a) The ephemeral nature of existing rules. b) The persistence of current rules. c) The power of persuasion. d) The rapidity of the democratic process. 4) When a government levies a tax on a good equal to the external cost associated with the good's production, it the price paid by consumers and makes the market outcome efficient. a) Increases, more b) Increases, less c) Decreases, more (1) Decreases, less 5) The value of university education is substantially increased by: a) Indoctrinating students. b) Silencing views deemed uncomfortable for students and university administrators. c) Allowing unfettered debate of ideas. (1) Students not challenging their professors. 6) Governmentally owned companies are usually characterized by: a) High-prot levels b) Meager production costs 0) Tragedy of the commons (1) Better performance than private firms 7) Transfers targeted to low-income families increased in real dollars from an average of $ ---------- per person in 1965 to $ ----------- in 2016. a) 3,070 to 34,093 b) 5,750 to 21,345 0) 10,000 to 30,000 (1) None of the above 8) If the Census Bureau counted the missing $1.5 trillion in annual transfer payments, the poverty rate in the U.S. would be less than: a) 1% b) 2% c) 3% d) 4% 9) Average household in the bottom quintile has of available resources after accounting for net transfers received. In contrast, the average top-quintile household has average resources of after subtracting net taxes paid, rendering an inequality of times as much as the bottom quintile. a) $4,908; $295,904; 60 b) $45,389; 109,125; 17 c) $17,850; 194,906; 3.1 d) $50,901; $194,906; 3.8 10) The inequality generated by the great Air Jordan (see article) has similar consequences to society's welfare and income of others as the inequality caused by: a) Carlos Slim (Well-connected Mexican businessman) b) Steven Jobs (Founder of Apple) c) Pepe Fanjul (Sugar producer in Florida) d) Al Capone (Gangster in the 1930s) 1]) Indicate the percentages achieved by families in the top quintile in 2017, based on the following characteristics: education of the householder, married family couple, percent of married family couples in which the wife works full-time, and percent of total hours supplied. a) 92%, 64%, 69%, and 32%. b) 69%, 32%, 92%, and 92%. c) 69%, 92%, 64%, and 32%. d) 70%, 64%, 92%, and 32%. 12) Some lessons to be learned from the shale oil or fracking experience are: a) People respond to incentives. b) Human ingenuity keeps postponing the exhaustion of natural resources. c) Predictions of doomsayer experts, like English cleric Robert Malthus and Nobel laureate in economics Krugman, should be taken with a grain of salt (caution). d) The Stone Age ended and was not because of a decit of stones. Fossil fuels may experience a similar fate. e) All of the above 13) Which categories of goods are non-excludable'? a) Private goods and club goods b) Private goods and common resources c) Public goods and club goods d) Public goods and common resources 14) In the presence of a positive externality (vaccination), the market: a) Overproduces, and the government fails. b) Overproduces, and the market fails. c) Underproduces, and the market fails. d) Underproduces, and the government fails. 15) A not congested toll road {roads where payment is made to use them and in rush hours the toll payment may be increased substantially to e'ectively dissuade drivers from using it) is an example of: a) Private good b) Club good c) Public good d) Common resource 16) According to Mankiw, environmental activist hurt their cause by not thinking in economic terms because the economic analysis: a) Considers trade-offs people face. b) Is insensitive to people's well-being. c) It is only about prots made. d) Does not understand the true nature of the problem. 1'!) Markets generally allocate resources efficiently in the presence of: a) Private goods b) Rival and excludable goods in consumption. c) Non-rival, non-excludable goods. d) a) and b) e) All of the above 18) Politicians often announce increased government spending to provide a specic good, say more food stamps, nanced with increased debt. How can this strategy characterized? As one that confers: a) Visible benets and concealed costs. b) Invisible (concealed) benets and invisible (concealed) costs. c) Visible benets and visible costs d) Invisible (concealed) benets and visible costs. 19) If the government wants to raise revenue using the sales tax and wants to minimize deadweight losses, policymakers should focus on items with elasticity of demand and elasticity of supply. a) large large b) small; large c) small; small d) large; small 20) The latter curve shows that, in some cases, the government may reduce a tax and increase: a) government's tax revenues b) price paid by consumers c) deadweight loss d) price paid by suppliers