PUP 3002 Exam 3 Barrilleaux
Questions with Correct Answers
What is it called when a principal chooses an agent with different preferences? -
ANSWER-adverse selection
While a citizen may share preferences with a candidate on the environment,
abortion, and health care, they may hold opposing positions on foreign policy,
immigration, and taxation. What is this an example of? - ANSWER-cross-cutting
cleavages
The mission of the ____ is to minimize the likelihood of major disasters, whether
manmade or natural in the United States, and when disasters do occur, to minimize
the damage done through emergency response action. - ANSWER-Department of
Homeland Security
This controversial law enhanced the government's ability to gather information and
obtain search warrants to prevent terrorism. - ANSWER-The USA Patriot Act
Risk is a function of three factors: threat, vulnerability, and - ANSWER-
consequences
Moe and Wilson (1994) define the ____ as the set of institutions that "interpret,
elaborate, and carry out public policy." - ANSWER-bureaucracy
A successful ____ acquires wealth, but does not create any additional wealth. -
ANSWER-rent-seeker
What involves policies that reduce the consequences of an attack and falls primarily
within the domain of energy management? - ANSWER-mitigation
As much as possible, the defender should protect its most valuable target, then its
second most valuable target, then its third most, and so on. What concept is this an
example of? - ANSWER-minimax strategy
In June 2013, ____, an NSA contractor, gave classified documents to journalists,
revealing the extent of the government's data mining programs. - ANSWER-Edward
Snowden
Emergency response involves three sets of actions: preparation, response, and -
ANSWER-recovery
, What is the most important general approach to reducing the moral hazard problem
in electronic surveillance of American citizens? - ANSWER-Defined standard
operating procedures
What is the foreign policy area that deals with international security and the military?
- ANSWER-defense
What policy involves choice taking like domestic policy, but additionally involves
choices about relations with the rest of the world? - ANSWER-foreign policy
Outcome-based incentive schemes are central to reducing what type of problem? -
ANSWER-moral hazard
The primary principle that governs international trade is - ANSWER-Comparative
Advantage
Why are democratic leaders less likely to bluff than autocratic leaders? - ANSWER-
The existence of audience costs
While an agent can sometimes manipulate the principal's beliefs, there are bounds
on what can be achieved. What concept is this? - ANSWER-The elasticity of reality
What is a set of agreements both sides prefer to war, because the agreements are
less costly than war? - ANSWER-The bargaining range
When does a credible commitment problem exist? - ANSWER-When at least one
actor has an incentive to renege on an agreement.
How many stages are in the Crisis Bargaining Game? - ANSWER-3
Most economists identify the factors of production as - ANSWER-land, labor, and
capital
When the US government imposes tariffs on foreign cars in order to ensure the
success of domestic car manufacturers, the US is engaging in what type of
economic policy? - ANSWER-Protectionism
negative externality - ANSWER-the harm, cost, or inconvenience suffered by a third
party because of actions by others
deadweight loss - ANSWER-the fall in total surplus that results from a market
distortion, such as a tax
carbon tax - ANSWER-a fee that the government charges polluters for each unit of
greenhouse gas they emit
consumption tax - ANSWER-a plan in which people are taxed not on what they earn
but on what they spend
Pigouvian Tax - ANSWER-taxes designed to reduce external costs
Questions with Correct Answers
What is it called when a principal chooses an agent with different preferences? -
ANSWER-adverse selection
While a citizen may share preferences with a candidate on the environment,
abortion, and health care, they may hold opposing positions on foreign policy,
immigration, and taxation. What is this an example of? - ANSWER-cross-cutting
cleavages
The mission of the ____ is to minimize the likelihood of major disasters, whether
manmade or natural in the United States, and when disasters do occur, to minimize
the damage done through emergency response action. - ANSWER-Department of
Homeland Security
This controversial law enhanced the government's ability to gather information and
obtain search warrants to prevent terrorism. - ANSWER-The USA Patriot Act
Risk is a function of three factors: threat, vulnerability, and - ANSWER-
consequences
Moe and Wilson (1994) define the ____ as the set of institutions that "interpret,
elaborate, and carry out public policy." - ANSWER-bureaucracy
A successful ____ acquires wealth, but does not create any additional wealth. -
ANSWER-rent-seeker
What involves policies that reduce the consequences of an attack and falls primarily
within the domain of energy management? - ANSWER-mitigation
As much as possible, the defender should protect its most valuable target, then its
second most valuable target, then its third most, and so on. What concept is this an
example of? - ANSWER-minimax strategy
In June 2013, ____, an NSA contractor, gave classified documents to journalists,
revealing the extent of the government's data mining programs. - ANSWER-Edward
Snowden
Emergency response involves three sets of actions: preparation, response, and -
ANSWER-recovery
, What is the most important general approach to reducing the moral hazard problem
in electronic surveillance of American citizens? - ANSWER-Defined standard
operating procedures
What is the foreign policy area that deals with international security and the military?
- ANSWER-defense
What policy involves choice taking like domestic policy, but additionally involves
choices about relations with the rest of the world? - ANSWER-foreign policy
Outcome-based incentive schemes are central to reducing what type of problem? -
ANSWER-moral hazard
The primary principle that governs international trade is - ANSWER-Comparative
Advantage
Why are democratic leaders less likely to bluff than autocratic leaders? - ANSWER-
The existence of audience costs
While an agent can sometimes manipulate the principal's beliefs, there are bounds
on what can be achieved. What concept is this? - ANSWER-The elasticity of reality
What is a set of agreements both sides prefer to war, because the agreements are
less costly than war? - ANSWER-The bargaining range
When does a credible commitment problem exist? - ANSWER-When at least one
actor has an incentive to renege on an agreement.
How many stages are in the Crisis Bargaining Game? - ANSWER-3
Most economists identify the factors of production as - ANSWER-land, labor, and
capital
When the US government imposes tariffs on foreign cars in order to ensure the
success of domestic car manufacturers, the US is engaging in what type of
economic policy? - ANSWER-Protectionism
negative externality - ANSWER-the harm, cost, or inconvenience suffered by a third
party because of actions by others
deadweight loss - ANSWER-the fall in total surplus that results from a market
distortion, such as a tax
carbon tax - ANSWER-a fee that the government charges polluters for each unit of
greenhouse gas they emit
consumption tax - ANSWER-a plan in which people are taxed not on what they earn
but on what they spend
Pigouvian Tax - ANSWER-taxes designed to reduce external costs
