QUESTION 23 Exhibit 16.2 Distribution of Benefits Widespread concentrated Widespread 1 Distribution of Costs Concentrated Refer to Exhibit 16.2. In Box 2, an example of special-interest legislation is that for O a. labor union issues. O b. national defense. O c. rent-seeking O d. tort reform. O e. farm subsidies. QUESTION 24 JPC Motors benefits from tariffs on imported automobiles. Companies that use imported automobile parts want to get them cheaply. In this case, the issue of tariff legislation involves_ a. competing interests, because it promises concentrated costs and benefits. O b. a simple majority, because it promises concentrated costs and benefits. O c. a simple majority, because it promises widespread benefits and costs. O d. competing interests, because it promises concentrated costs and widespread benefits. O e. competing interests, because it promises concentrated benefits and widespread costs. QUESTION 25 Exhibit 16.2 Distribution of Benefits Widespread oncentrated Widespread Distribution of Costs Concentrated Refer to Exhibit 16.2. Box 2 shows O a. competing-interest legislation. O b. traditional public-goods legislation. O c. special-interest legislation O d. quasi legislation. O e. populist legislation.QUESTION 26 When the government increases taxes to provide traditional public goods, such as national security, there tend to be: O a. widespread costs and concentrated benefits. O b. widespread benefits and costs. O c. concentrated benefits and costs. O d. widespread costs and zero benefits. O e. widespread benefits and concentrated costs. QUESTION 27 Tax evasion differs from tax avoidance in the sense that evasion O a. is legal O b. is a rent-seeking activity. O c. can only be done through an accountant. O d. is illegal. O e. is encouraged by the Internal Revenue Service. QUESTION 28 One goal of a political action committee is to O a. make it easier for legislators to accept the median-voter model. O b. help raise funds for public-interest groups. O c. encourage people to become more active in politics. O d. help elect officials who will enact fair legislation. O e. engage in rent seeking.QUESTION 29 Exhibit 16.4 Price ($) - Price floor m Quantity ( number of units) Refer to Exhibit 16.4, which shows the market for a good. Suppose the government introduces a variety of policies that set floor prices for the good at Sc. The quantity supplied at the price floor is O a. I units. O b. j units O c. k units O d.m units. O e. i units. QUESTION 30 Private firms and public bureaus differ in that O a. private firms have less incentive to eliminate waste and inefficiency. O b. ownership is not transferable in private firms, while ownership is transferable in bureaus. O c. private firms are usually financed by government appropriations, while bureaus cover their costs if enough people buy their products. O d. private firms have more incentive to act on consumer feedback. O e. private firms do not have a profit incentive to satisfy consumer wants, but bureaus have a profit incentive to satisfy consumers