FSU PUP3002 Midterm Exam
Questions with Complete Answers
Condorcet's Paradox - ANSWER-Voting paradox. Collective preferences can be
cyclic, even if the preferences of individuals voters are not cyclic. This is paradoxical,
because it means that majority wishes can be in conflict with each other. Observed
that under certain conditions group preferences might not be transitive despite each
individual member of the group possessing transitive preferences
Confounding Variable - ANSWER-When we have a set of variables that are
correlated with both our treatment and our potential outcome.
EX: private school leads to higher SAT scores.
X= private school.
y= higher SAT scores.
x (+ income) = y
income = confounding variable
Correlation - ANSWER-how strongly two variables, tend to co-vary. Correlation
reveals whether two variables are positively associated.
Counterfactual Outcome - ANSWER-what could have happened due to other
conditions
Factual Outcome - ANSWER-what has happened
Dependent Variable - ANSWER-Depends on the values of something else,
represents the output on what variation is being studied
Deterministic - ANSWER-always produce the same output from a treatment or initial
state
Devolution - ANSWER-The transfer of power to a lower level, especially by central
government to local or regional administration
Distribution - ANSWER-Aimed at ensuring proper trickling down and organization of
opportunities, goods, and services among different sections of society.
Efficiency (and efficiency gains) - ANSWER-Meaning whether the resources, time
and energy of a program are delivering the greatest policy outcomes, for a given
resources. Only by examining the relative performance of policies, either in
, comparison to each other or to themselves over time, one can gain the data to make
judgments on relative efficiency
Endogeneity - ANSWER-A factor in a causal model whose value is determined by
the state of other variables. A change or variable that arises from within a model or
system. For example, a change in customer's preferences from high fat foods to low
fat option is an endogenous change that affects things.
Equitable Policy Delivery - ANSWER-Public sector delivers the services that people
rely on daily to get ahead in life.
Error (sampling v. measurement v. random) - ANSWER-Error (sampling)- caused by
observing a sample instead of the whole population
Error (measurement)- difference btwn a measured value of a quantity and its true
value. They can be divided into random error and systematic error
Error (random)- errors in measurement that lead to measurable values being
inconsistent when repeated measurements of a constant attribute or quantity are
taken.
Excludable Goods - ANSWER-If it is possible to prevent people who have not paid
for a good from having access to it. Excludable, includes private goods and club
goods
Experiment - ANSWER-A scientific procedure undertaken to make a discovery, test
a hypothesis, or demonstrate a known fact
Externally valid - ANSWER-the extent to which the results of a study can be
generalized to other situations and to other people
Falsifiable - ANSWER-If a statement can be proven false by contradicting it with a
basic statement. Introduced by Karl Popper, he argued that statements and theories
that are not falsifiable are unscientific
Federalism - ANSWER-the mixed or compound mode of government, combining a
general government (or central government) with regional or state governments. Can
be defined as a form of government in which there is a division of powers between
two level of government.
Free rider problem - ANSWER-when people take advantage of being able to use a
common resource or collective good, without paying for it. This problem is common
with goods which are non-excludable (tragedy of the commons). Some individuals in
a team or community may reduce their contributions or performance if they believe
that one or more other members of the group may free ride
Generalizable - ANSWER-the extension of research findings and conclusions from a
study conducted on a sample population at large. To infer from particular facts,
statistics, or the alike
Government Failure - ANSWER-economic inefficiency caused by a government
intervention, if the inefficiency would not exist in a true free market. Is not a failure to
Questions with Complete Answers
Condorcet's Paradox - ANSWER-Voting paradox. Collective preferences can be
cyclic, even if the preferences of individuals voters are not cyclic. This is paradoxical,
because it means that majority wishes can be in conflict with each other. Observed
that under certain conditions group preferences might not be transitive despite each
individual member of the group possessing transitive preferences
Confounding Variable - ANSWER-When we have a set of variables that are
correlated with both our treatment and our potential outcome.
EX: private school leads to higher SAT scores.
X= private school.
y= higher SAT scores.
x (+ income) = y
income = confounding variable
Correlation - ANSWER-how strongly two variables, tend to co-vary. Correlation
reveals whether two variables are positively associated.
Counterfactual Outcome - ANSWER-what could have happened due to other
conditions
Factual Outcome - ANSWER-what has happened
Dependent Variable - ANSWER-Depends on the values of something else,
represents the output on what variation is being studied
Deterministic - ANSWER-always produce the same output from a treatment or initial
state
Devolution - ANSWER-The transfer of power to a lower level, especially by central
government to local or regional administration
Distribution - ANSWER-Aimed at ensuring proper trickling down and organization of
opportunities, goods, and services among different sections of society.
Efficiency (and efficiency gains) - ANSWER-Meaning whether the resources, time
and energy of a program are delivering the greatest policy outcomes, for a given
resources. Only by examining the relative performance of policies, either in
, comparison to each other or to themselves over time, one can gain the data to make
judgments on relative efficiency
Endogeneity - ANSWER-A factor in a causal model whose value is determined by
the state of other variables. A change or variable that arises from within a model or
system. For example, a change in customer's preferences from high fat foods to low
fat option is an endogenous change that affects things.
Equitable Policy Delivery - ANSWER-Public sector delivers the services that people
rely on daily to get ahead in life.
Error (sampling v. measurement v. random) - ANSWER-Error (sampling)- caused by
observing a sample instead of the whole population
Error (measurement)- difference btwn a measured value of a quantity and its true
value. They can be divided into random error and systematic error
Error (random)- errors in measurement that lead to measurable values being
inconsistent when repeated measurements of a constant attribute or quantity are
taken.
Excludable Goods - ANSWER-If it is possible to prevent people who have not paid
for a good from having access to it. Excludable, includes private goods and club
goods
Experiment - ANSWER-A scientific procedure undertaken to make a discovery, test
a hypothesis, or demonstrate a known fact
Externally valid - ANSWER-the extent to which the results of a study can be
generalized to other situations and to other people
Falsifiable - ANSWER-If a statement can be proven false by contradicting it with a
basic statement. Introduced by Karl Popper, he argued that statements and theories
that are not falsifiable are unscientific
Federalism - ANSWER-the mixed or compound mode of government, combining a
general government (or central government) with regional or state governments. Can
be defined as a form of government in which there is a division of powers between
two level of government.
Free rider problem - ANSWER-when people take advantage of being able to use a
common resource or collective good, without paying for it. This problem is common
with goods which are non-excludable (tragedy of the commons). Some individuals in
a team or community may reduce their contributions or performance if they believe
that one or more other members of the group may free ride
Generalizable - ANSWER-the extension of research findings and conclusions from a
study conducted on a sample population at large. To infer from particular facts,
statistics, or the alike
Government Failure - ANSWER-economic inefficiency caused by a government
intervention, if the inefficiency would not exist in a true free market. Is not a failure to
