FSU PUP 3002 Midterm Exam Questions
With Correct Answers
Accountability - CORRECT ANSWER✔✔-The consent of the governed,
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whose interests are being served by the government. Know what the
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government is doing, and do you approve of the government's actions
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Assumptions of rationality - CORRECT ANSWER✔✔-assume a person is
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rational, and a rational person will always take decisions that result in
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optimization and provide them with the greatest benefit. If the agent
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strictly prefers x to X and y to X then we write x>y. If they are indifferent,
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then we write x~y. If they weakly prefer x to y then we write x>y.
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Asymmetric Information - CORRECT ANSWER✔✔-information failure,
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when one party to an economic transaction possesses greater material
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knowledge than the other party. Normally manifests when the seller of
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a good or service has greater knowledge than the buyer.
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Bayes Rule - CORRECT ANSWER✔✔-probability of an event, based on
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prior knowledge of conditions that might be related to the event. For
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example, if cancer is related to age, then using baye's theorem, a
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person's age can be used to more accurately assess the probability that
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, they have cancer, compared to the assessment of the probability of
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cancer made without knowledge of the person's age
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Bounded Rationality - CORRECT ANSWER✔✔-in decision making,
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rationality of individuals is limited by the information they have, the
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cognitive limitations of their minds, and the amount of time they have
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to make a decision
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Checks and Balances - CORRECT ANSWER✔✔-Counterbalancing
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influences by which an organization or system is regulated, typically
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those ensuring that political power is not concentrated in the hands of
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individuals or groups | |
Club Goods - CORRECT ANSWER✔✔-goods that are excludable and non-
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rivalrous. A club good is one that requires a membership to enjoy the
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good.
Coercion - CORRECT ANSWER✔✔-Threat or use of punitive measures
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against states, groups, or individuals in order to force them to undertake
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or desist from specified actions
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Collective Action Problem - CORRECT ANSWER✔✔-When a number of
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people work together to achieve some common objective. However, it
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has long been recognized that individuals often fail to work together to
| | | | | | | | | | | |
achieve a group goal or common good. Each individual in any given
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With Correct Answers
Accountability - CORRECT ANSWER✔✔-The consent of the governed,
| | | | | | | |
whose interests are being served by the government. Know what the
| | | | | | | | | | |
government is doing, and do you approve of the government's actions
| | | | | | | | | |
Assumptions of rationality - CORRECT ANSWER✔✔-assume a person is
| | | | | | | | |
rational, and a rational person will always take decisions that result in
| | | | | | | | | | | |
optimization and provide them with the greatest benefit. If the agent
| | | | | | | | | | |
strictly prefers x to X and y to X then we write x>y. If they are indifferent,
| | | | | | | | | | | | | | | |
then we write x~y. If they weakly prefer x to y then we write x>y.
| | | | | | | | | | | | | | |
Asymmetric Information - CORRECT ANSWER✔✔-information failure,
| | | | | |
when one party to an economic transaction possesses greater material
| | | | | | | | | |
knowledge than the other party. Normally manifests when the seller of
| | | | | | | | | | |
a good or service has greater knowledge than the buyer.
| | | | | | | | |
Bayes Rule - CORRECT ANSWER✔✔-probability of an event, based on
| | | | | | | | | |
prior knowledge of conditions that might be related to the event. For
| | | | | | | | | | | |
example, if cancer is related to age, then using baye's theorem, a
| | | | | | | | | | | |
person's age can be used to more accurately assess the probability that
| | | | | | | | | | | |
, they have cancer, compared to the assessment of the probability of
| | | | | | | | | | |
cancer made without knowledge of the person's age
| | | | | | |
Bounded Rationality - CORRECT ANSWER✔✔-in decision making,
| | | | | | |
rationality of individuals is limited by the information they have, the
| | | | | | | | | | |
cognitive limitations of their minds, and the amount of time they have
| | | | | | | | | | | |
to make a decision
| | |
Checks and Balances - CORRECT ANSWER✔✔-Counterbalancing
| | | | | |
influences by which an organization or system is regulated, typically
| | | | | | | | | |
those ensuring that political power is not concentrated in the hands of
| | | | | | | | | | | |
individuals or groups | |
Club Goods - CORRECT ANSWER✔✔-goods that are excludable and non-
| | | | | | | | |
rivalrous. A club good is one that requires a membership to enjoy the
| | | | | | | | | | | | |
good.
Coercion - CORRECT ANSWER✔✔-Threat or use of punitive measures
| | | | | | | | |
against states, groups, or individuals in order to force them to undertake
| | | | | | | | | | |
or desist from specified actions
| | | | |
Collective Action Problem - CORRECT ANSWER✔✔-When a number of
| | | | | | | | |
people work together to achieve some common objective. However, it
| | | | | | | | | |
has long been recognized that individuals often fail to work together to
| | | | | | | | | | | |
achieve a group goal or common good. Each individual in any given
| | | | | | | | | | | |
