POS2041 Midterm Exam: Democracy, Federalism,
and U.S. Government ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
What is the Folk Theory of It suggests that people want good policies, vote
Democracy? for politicians to implement them, and that elected
officials do what people want, but it has flaws like
lack of knowledge and biased media.
What are some reasons why the To maintain the rule of law, solve collective action
government exists? problems, address market failures, and reduce
inequality.
, What is a collective action problem A situation where individuals want to solve a
(CAP)? problem that requires group effort, but individual
participation is discouraged.
What is the solution to a The government makes a decision and enforces it,
Coordination CAP? such as enforcing driving on the right side of the
road.
What is the solution to a Free Rider Requiring effort to receive rewards or punishing
CAP? those who do not contribute, such as through
taxes.
What is the solution to the Tragedy Assigning private property or requiring quotas, like
of the Commons? fishing licenses.
What is the Prisoners Dilemma? A situation where individuals would benefit from
cooperation but have individual incentives to
betray each other.
What is an externality? An agreement between two individuals impacts
others not in the agreement.
What is a positive externality? A beneficial effect on society, such as education,
that is underproduced.
and U.S. Government ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
What is the Folk Theory of It suggests that people want good policies, vote
Democracy? for politicians to implement them, and that elected
officials do what people want, but it has flaws like
lack of knowledge and biased media.
What are some reasons why the To maintain the rule of law, solve collective action
government exists? problems, address market failures, and reduce
inequality.
, What is a collective action problem A situation where individuals want to solve a
(CAP)? problem that requires group effort, but individual
participation is discouraged.
What is the solution to a The government makes a decision and enforces it,
Coordination CAP? such as enforcing driving on the right side of the
road.
What is the solution to a Free Rider Requiring effort to receive rewards or punishing
CAP? those who do not contribute, such as through
taxes.
What is the solution to the Tragedy Assigning private property or requiring quotas, like
of the Commons? fishing licenses.
What is the Prisoners Dilemma? A situation where individuals would benefit from
cooperation but have individual incentives to
betray each other.
What is an externality? An agreement between two individuals impacts
others not in the agreement.
What is a positive externality? A beneficial effect on society, such as education,
that is underproduced.
