Midterm Assessment -- Week 2 Review
2025 EXAM
Efficiency in Policy Analysis - CORRECT ANSWERS A measure of how well
resources are used to achieve policy objectives with minimal waste or cost.
Market Failure - CORRECT ANSWERS A situation where the free market does not
allocate resources efficiently, justifying government intervention.
Public Goods - CORRECT ANSWERS Goods that are non-excludable and non-
rivalrous, meaning they can be consumed by everyone without depletion (e.g., clean air,
national defense).
Externalities - CORRECT ANSWERS Costs or benefits of an economic activity
experienced by third parties, leading to market inefficiency (e.g., pollution).
Pareto Efficiency - CORRECT ANSWERS An allocation of resources where no
individual can be made better off without making someone else worse off.
Compensating Variation - CORRECT ANSWERS The amount of money needed to
keep a person at the same level of utility after a policy change.
Economic Surplus - CORRECT ANSWERS The total benefit to society from an
economic transaction, including consumer and producer surplus.
Deadweight Loss - CORRECT ANSWERS A loss of economic efficiency when
equilibrium for a good or service is not achieved.
Regulatory Capture - CORRECT ANSWERS When regulatory agencies are
dominated by the industries they are supposed to regulate, leading to biased policies.
Political Feasibility - CORRECT ANSWERS The likelihood that a policy will be
accepted and supported by political actors and the public.
Policy Externalities - CORRECT ANSWERS Unintended consequences of a policy
that affect stakeholders not directly involved in the decision-making process.
Structural Environment - CORRECT ANSWERS The legal, institutional, and
constitutional framework within which policy decisions are made.
, Social Environment - CORRECT ANSWERS Demographic and cultural factors that
influence public policy, such as aging populations and racial diversity.
Economic Environment - CORRECT ANSWERS The macroeconomic conditions,
such as inflation, employment, and economic growth, that shape policy decisions.
Political Environment - CORRECT ANSWERS The influence of political institutions,
interest groups, and public opinion on policy formulation.
Separation of Powers - CORRECT ANSWERS The constitutional division of
government into legislative, executive, and judicial branches to prevent concentration of
power.
Federalism - CORRECT ANSWERS A system of government where power is shared
between national and subnational entities (e.g., U.S. federal and state governments).
Open Public Meetings - CORRECT ANSWERS Laws requiring government decision-
making processes to be open to public scrutiny.
Freedom of Information Act - CORRECT ANSWERS A federal law granting the
public access to government documents and records.
Policy Cycle - CORRECT ANSWERS A model breaking the policy process into
stages: agenda-setting, formulation, adoption, implementation, and evaluation.
Systems Thinking in Policy - CORRECT ANSWERS A way of understanding policy
as a system with inputs, processes, and outputs, influenced by various external factors.
Black Box in Policy Analysis - CORRECT ANSWERS A part of a system where
inputs are processed into outputs without clear understanding of internal mechanisms.
Policy Inputs - CORRECT ANSWERS Factors influencing policy decisions, such as
election results, public opinion, and interest group activity.
Policy Outputs - CORRECT ANSWERS The tangible results of policy decisions,
including laws, regulations, and public programs.
Stakeholder Analysis - CORRECT ANSWERS A method of assessing the interests,
influence, and power of different groups affected by a policy.
Policy Entrepreneurs - CORRECT ANSWERS Individuals or organizations that
advocate for policy change by framing issues and building coalitions.
Agenda-Setting - CORRECT ANSWERS The process by which certain issues are
prioritized for political attention and action.
2025 EXAM
Efficiency in Policy Analysis - CORRECT ANSWERS A measure of how well
resources are used to achieve policy objectives with minimal waste or cost.
Market Failure - CORRECT ANSWERS A situation where the free market does not
allocate resources efficiently, justifying government intervention.
Public Goods - CORRECT ANSWERS Goods that are non-excludable and non-
rivalrous, meaning they can be consumed by everyone without depletion (e.g., clean air,
national defense).
Externalities - CORRECT ANSWERS Costs or benefits of an economic activity
experienced by third parties, leading to market inefficiency (e.g., pollution).
Pareto Efficiency - CORRECT ANSWERS An allocation of resources where no
individual can be made better off without making someone else worse off.
Compensating Variation - CORRECT ANSWERS The amount of money needed to
keep a person at the same level of utility after a policy change.
Economic Surplus - CORRECT ANSWERS The total benefit to society from an
economic transaction, including consumer and producer surplus.
Deadweight Loss - CORRECT ANSWERS A loss of economic efficiency when
equilibrium for a good or service is not achieved.
Regulatory Capture - CORRECT ANSWERS When regulatory agencies are
dominated by the industries they are supposed to regulate, leading to biased policies.
Political Feasibility - CORRECT ANSWERS The likelihood that a policy will be
accepted and supported by political actors and the public.
Policy Externalities - CORRECT ANSWERS Unintended consequences of a policy
that affect stakeholders not directly involved in the decision-making process.
Structural Environment - CORRECT ANSWERS The legal, institutional, and
constitutional framework within which policy decisions are made.
, Social Environment - CORRECT ANSWERS Demographic and cultural factors that
influence public policy, such as aging populations and racial diversity.
Economic Environment - CORRECT ANSWERS The macroeconomic conditions,
such as inflation, employment, and economic growth, that shape policy decisions.
Political Environment - CORRECT ANSWERS The influence of political institutions,
interest groups, and public opinion on policy formulation.
Separation of Powers - CORRECT ANSWERS The constitutional division of
government into legislative, executive, and judicial branches to prevent concentration of
power.
Federalism - CORRECT ANSWERS A system of government where power is shared
between national and subnational entities (e.g., U.S. federal and state governments).
Open Public Meetings - CORRECT ANSWERS Laws requiring government decision-
making processes to be open to public scrutiny.
Freedom of Information Act - CORRECT ANSWERS A federal law granting the
public access to government documents and records.
Policy Cycle - CORRECT ANSWERS A model breaking the policy process into
stages: agenda-setting, formulation, adoption, implementation, and evaluation.
Systems Thinking in Policy - CORRECT ANSWERS A way of understanding policy
as a system with inputs, processes, and outputs, influenced by various external factors.
Black Box in Policy Analysis - CORRECT ANSWERS A part of a system where
inputs are processed into outputs without clear understanding of internal mechanisms.
Policy Inputs - CORRECT ANSWERS Factors influencing policy decisions, such as
election results, public opinion, and interest group activity.
Policy Outputs - CORRECT ANSWERS The tangible results of policy decisions,
including laws, regulations, and public programs.
Stakeholder Analysis - CORRECT ANSWERS A method of assessing the interests,
influence, and power of different groups affected by a policy.
Policy Entrepreneurs - CORRECT ANSWERS Individuals or organizations that
advocate for policy change by framing issues and building coalitions.
Agenda-Setting - CORRECT ANSWERS The process by which certain issues are
prioritized for political attention and action.
