Public Policy Exam 4 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
- CORRECT ANSWER labor and capital
what is foreign policy - CORRECT ANSWER a policy that involves choice taking
similar to domestic policy, but additionally involves choices about relations with the rest of
the world
Who is the chief initiator of foreign policy in the United States - CORRECT
ANSWER The President
Defense Policy - CORRECT ANSWER a type of policy that deals with international
security and the military
what does defense policy comprise of? - CORRECT ANSWER it comprises the
measures and initiatives that governments do or do not take in relation to decision-making
and strategic goals, such as when and how to commit national armed forces
who are the actors in foreign and defense policy - CORRECT ANSWER the public &
the politicians
The public - CORRECT ANSWER -has various goals and demands
-some goals tend to be universal
-some are polarizing, often on party lines
The politicians - CORRECT ANSWER -representatives of the people
-charged with representing American interests
-Congress (two terms)
-Senate (6 year terms)
-President ( 4 year terms)
,How many terms is congress, senate, and the president - CORRECT
ANSWER congress=2
senate=6
president=4
who is the principle and who is the agent in foreign policy - CORRECT
ANSWER principle=the public
agent=political Leaders
Principles: The Public - CORRECT ANSWER -bosses
-they have preferred foreign and defense options
-they vote for leaders who they believe will carry out their interests
Agents: Political Leaders - CORRECT ANSWER -subordinates
-charged with carrying out the will of the principles
what are the principle agent problems in foreign policy and defense policy - CORRECT
ANSWER 1. Information Asymmetry
2. Adverse selection
3. Moral Hazard
information asymmetry - CORRECT ANSWER the principle is unable to see what the
agent is actually doing
exp: boss and employee
adverse selection - CORRECT ANSWER -agents and principles will have different
preferences
-agent may want policy x, but principle may want policy y
, moral hazard - CORRECT ANSWER -someone takes more risks because someone else
takes the burdens of those risks
-if agents takes reusability for me I can take more risks
-is going to war rlly costly for the agent?
how can you solve the problems in foreign and defense policy - CORRECT
ANSWER 1. screening
2. standard operating procedures
3. outcome based incentives
screening - CORRECT ANSWER -principles try to only hire those with similar
preferences as them
-exp: elections, vetting, ect
standard operating procedures - CORRECT ANSWER -guidelines of what should be
done in a given scenario
-principles do not have to observe anything, just make sure certain landmarks are met
-if they are not met they can choose to punish (not vote for them in the next election)
outcome based incentives - CORRECT ANSWER -Incentive structures
-minimize agent defection by making the outcome based on their choice more tangible to the
agent
who are really the principles even tho its technically the public - CORRECT
ANSWER more realistically the winning coalition
when politicians reflect the WC preference they get what, what happens when they do the
opposite - CORRECT ANSWER when they reflect the WC preferences they get
rewarded, but when they do not (and its observed) they get punished
QUESTIONS AND CORRECT ANSWERS
- CORRECT ANSWER labor and capital
what is foreign policy - CORRECT ANSWER a policy that involves choice taking
similar to domestic policy, but additionally involves choices about relations with the rest of
the world
Who is the chief initiator of foreign policy in the United States - CORRECT
ANSWER The President
Defense Policy - CORRECT ANSWER a type of policy that deals with international
security and the military
what does defense policy comprise of? - CORRECT ANSWER it comprises the
measures and initiatives that governments do or do not take in relation to decision-making
and strategic goals, such as when and how to commit national armed forces
who are the actors in foreign and defense policy - CORRECT ANSWER the public &
the politicians
The public - CORRECT ANSWER -has various goals and demands
-some goals tend to be universal
-some are polarizing, often on party lines
The politicians - CORRECT ANSWER -representatives of the people
-charged with representing American interests
-Congress (two terms)
-Senate (6 year terms)
-President ( 4 year terms)
,How many terms is congress, senate, and the president - CORRECT
ANSWER congress=2
senate=6
president=4
who is the principle and who is the agent in foreign policy - CORRECT
ANSWER principle=the public
agent=political Leaders
Principles: The Public - CORRECT ANSWER -bosses
-they have preferred foreign and defense options
-they vote for leaders who they believe will carry out their interests
Agents: Political Leaders - CORRECT ANSWER -subordinates
-charged with carrying out the will of the principles
what are the principle agent problems in foreign policy and defense policy - CORRECT
ANSWER 1. Information Asymmetry
2. Adverse selection
3. Moral Hazard
information asymmetry - CORRECT ANSWER the principle is unable to see what the
agent is actually doing
exp: boss and employee
adverse selection - CORRECT ANSWER -agents and principles will have different
preferences
-agent may want policy x, but principle may want policy y
, moral hazard - CORRECT ANSWER -someone takes more risks because someone else
takes the burdens of those risks
-if agents takes reusability for me I can take more risks
-is going to war rlly costly for the agent?
how can you solve the problems in foreign and defense policy - CORRECT
ANSWER 1. screening
2. standard operating procedures
3. outcome based incentives
screening - CORRECT ANSWER -principles try to only hire those with similar
preferences as them
-exp: elections, vetting, ect
standard operating procedures - CORRECT ANSWER -guidelines of what should be
done in a given scenario
-principles do not have to observe anything, just make sure certain landmarks are met
-if they are not met they can choose to punish (not vote for them in the next election)
outcome based incentives - CORRECT ANSWER -Incentive structures
-minimize agent defection by making the outcome based on their choice more tangible to the
agent
who are really the principles even tho its technically the public - CORRECT
ANSWER more realistically the winning coalition
when politicians reflect the WC preference they get what, what happens when they do the
opposite - CORRECT ANSWER when they reflect the WC preferences they get
rewarded, but when they do not (and its observed) they get punished
