Using your knowledge gained from this chapter, briefly explain why government “pork” is created, even when the government spending appears ridiculous
Please provide the best answer for the statement.
Pork occurs, even though it appears ridiculous, because of government failure. This can be a result of special interest lobbying, rent-seeking behavior of special interest groups, hidden costs or delayed benefits that cause politicians to make inefficient decisions to please constituents and gain re-election, the limited choice bundles politicians offer to voters, or the bureaucracy and inefficiency of government agencies. Each of these elements plays a role at times in the creation of pork.
You might also like to view...
In Michael Porter's five competitive forces model, what do the competitive forces determine?
What will be an ideal response?
Resources are efficiently allocated when production occurs at that point at which
a. marginal cost intersects average variable cost b. price is equal to average revenue c. price is equal to marginal cost d. marginal revenue equals marginal cost e. price is equal to average variable cost
Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will create 450 new jobs for his residents. As a student of economics, you know that
a. this is a case of the "broken window fallacy.". b. this is a great use of taxpayer dollars. c. this policy diverts money from spending somewhere else in the economy. d. Both a and c are correct.
Figure 4-7
Refer to . Which of the following is true for the tax illustrated?
a.
The tax increases the price of gasoline by $.60.
b.
Since the demand for gasoline is more inelastic than the supply, consumers bear most of the burden of the tax.
c.
Since the demand for gasoline is more elastic than the supply, consumers bear most of the burden of the tax.
d.
Since the supply of gasoline is highly inelastic, the primary burden of the tax is imposed on the suppliers of gasoline.