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Many economists believe that when the federal government establishes an agency to regulate a ...

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Many economists believe that when the federal government establishes an agency to regulate a ...

Question 1.

Congressman Flack votes for a program that will benefit the constituents of Congressman Walpole. The public choice model suggests that Flack's vote is best explained by which of the following?

• rational ignorance

• party loyalty

• logrolling

• the voting paradox

Question 2.

Many economists believe that when the federal government establishes an agency to regulate a particular industry, the regulated firms try to influence the agency even if these actions do not benefit the public. Economists refer to this result of government regulation by which of the following terms?

• regulatory capture

• logrolling

• special-interest regulation

• the regulatory paradox

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

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dnlee1

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Coltonht Author

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Thanks

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Thank you, thank you, thank you!

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