PUBLIC POLICY EXAM 4 2025
QUESTIONS AND ANSWERS
Labor and capital
what is foreign policy - ANS 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 - ANS The President
Defense Policy - ANS a type of policy that deals with international security and the military
what does defense policy comprise of? - ANS 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 - ANS the public & the politicians
The public - ANS -has various goals and demands
-some goals tend to be universal
-some are polarizing, often on party lines
1
Page
The politicians - ANS -representatives of the people
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, -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 - ANS congress=2
senate=6
president=4
who is the principle and who is the agent in foreign policy - ANS principle=the public
agent=political Leaders
Principles: The Public - ANS -bosses
-they have preferred foreign and defense options
-they vote for leaders who they believe will carry out their interests
Agents: Political Leaders - ANS -subordinates
-charged with carrying out the will of the principles
what are the principle agent problems in foreign policy and defense policy - ANS 1.
Information Asymmetry
2. Adverse selection
3. Moral Hazard
information asymmetry - ANS the principle is unable to see what the agent is actually doing
exp: boss and employee
2
Page
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, adverse selection - ANS -agents and principles will have different preferences
-agent may want policy x, but principle may want policy y
moral hazard - ANS -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 - ANS 1. screening
2. standard operating procedures
3. outcome based incentives
screening - ANS -principles try to only hire those with similar preferences as them
-exp: elections, vetting, ect
standard operating procedures - ANS -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 - ANS -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 - ANS more realistically the
winning coalition
when politicians reflect the WC preference they get what, what happens when they do the
3
opposite - ANS when they reflect the WC preferences they get rewarded, but when they do
Page
not (and its observed) they get punished
@COPYRIGHT SIRJOEL 2025/2026
QUESTIONS AND ANSWERS
Labor and capital
what is foreign policy - ANS 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 - ANS The President
Defense Policy - ANS a type of policy that deals with international security and the military
what does defense policy comprise of? - ANS 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 - ANS the public & the politicians
The public - ANS -has various goals and demands
-some goals tend to be universal
-some are polarizing, often on party lines
1
Page
The politicians - ANS -representatives of the people
@COPYRIGHT SIRJOEL 2025/2026
, -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 - ANS congress=2
senate=6
president=4
who is the principle and who is the agent in foreign policy - ANS principle=the public
agent=political Leaders
Principles: The Public - ANS -bosses
-they have preferred foreign and defense options
-they vote for leaders who they believe will carry out their interests
Agents: Political Leaders - ANS -subordinates
-charged with carrying out the will of the principles
what are the principle agent problems in foreign policy and defense policy - ANS 1.
Information Asymmetry
2. Adverse selection
3. Moral Hazard
information asymmetry - ANS the principle is unable to see what the agent is actually doing
exp: boss and employee
2
Page
@COPYRIGHT SIRJOEL 2025/2026
, adverse selection - ANS -agents and principles will have different preferences
-agent may want policy x, but principle may want policy y
moral hazard - ANS -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 - ANS 1. screening
2. standard operating procedures
3. outcome based incentives
screening - ANS -principles try to only hire those with similar preferences as them
-exp: elections, vetting, ect
standard operating procedures - ANS -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 - ANS -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 - ANS more realistically the
winning coalition
when politicians reflect the WC preference they get what, what happens when they do the
3
opposite - ANS when they reflect the WC preferences they get rewarded, but when they do
Page
not (and its observed) they get punished
@COPYRIGHT SIRJOEL 2025/2026
