Term
|
Definition
| involves an international course of action followed by a government for resolving an issue of public concern. |
|
|
Term
|
Definition
tangible measurable results.
Example: Number of meals, Vaccines |
|
|
Term
|
Definition
when Policy attempts to change individual behavior it sometimes worsens the situation.
Insured> Risky Behavior- Obesity, |
|
|
Term
| Four Context of American Politics |
|
Definition
Institutional- balance of powers
Fiscal -taxing and spending policies prescribed by the president.
Demographic
Ideology- Liberal vs. Conservative |
|
|
Term
| Liberals vs. Conservatives |
|
Definition
Economics-conserv-small gov, low tax
Culture-absolute morality, intervention
Foriegn policy- intervention, war |
|
|
Term
|
Definition
Full Information
No transaction Cost
Amoral
No public goods
No monopolies |
|
|
Term
|
Definition
| They are defined as third party (or spill-over) effects arising from the production and/or consumption of goods and services for which no appropriate compensation is paid. |
|
|
Term
|
Definition
A third party bears the cost of a transaction between a buyer and seller.
Example. Pollution |
|
|
Term
|
Definition
A third party (or Free-rider) benefits without paying the cost.
Example: Education, Flu Shot
Higher salary, more taxes public service would be greater. |
|
|
Term
|
Definition
| people enjoy public goods whether or not they pay for it. |
|
|
Term
| What does the gov do to affect externalities? |
|
Definition
| Subsidies and taxes respectively to reduce externalities |
|
|
Term
| Why government gets involved in Market Failures |
|
Definition
Ethical issues
Externalities |
|
|
Term
| Public Good without Government |
|
Definition
Emergency - Red Cross
Social Pressure- Church
Desires of one party |
|
|
Term
|
Definition
| programs promising aid without time limit to anyone who qualifies. |
|
|
Term
| Left Ideology of Entitlements |
|
Definition
| Rawls veil ignorance - maximize the minimum, generous government benefit. |
|
|
Term
| Right Ideology of Entitlements |
|
Definition
Oken Leaky Bucket - rich give to poor = poorer society
*poor work less
*rich work less
*pay beaurocracy who decide these things
* robin hooding leads to leakage |
|
|
Term
| What is the difference in view of education between conservatives and liberals? |
|
Definition
Con.- You are the beneficiary
Lib.- Society is the beneficiary |
|
|
Term
| Problem inherent in direct democracy |
|
Definition
Paradox of voting
Intensity of Preference
Citizens vote for issues themselves |
|
|
Term
| Problems inherent in representative democracy |
|
Definition
Mandates-
Assumption
Concentrated Benefits
Diffused benefits/concentrated cost
Collective Action Problem
Limited Time Horizons- Wilbur Mills
District Based Politics
Policy Making is Irrational |
|
|
Term
Concentrated Benefits
Problems inherent in representative democracy |
|
Definition
small group wants to lobby govt for a purpose, the cost is diffuse amongst millions of people.
Ex. GM Bailout |
|
|
Term
Diffused Benefits/ Concentrated cost
Problems inherent in representative democracy |
|
Definition
| benefits are diffused amongst millions while one industry is fighting to go against the burden. Because the benefit is so dispersed the public doesn't fight back. |
|
|
Term
District Base Legislatures
Problems inherent in representative democracy |
|
Definition
members of congress have a self interest to fight for their state. They are wasteful.
Ex. Sen. Stevens, Sen Byrd |
|
|
Term
Limited Time Horizon
Problems inherent in representative democracy |
|
Definition
congress members are so preoccupied with reelection that they enact policies that are going to be paid down the road.
Ex. 1972 Wilbur Mills running for president purposes social security . Leads to massive inflation, job loss fix by payroll taxes. |
|
|
Term
Policy Making is irrational
Problems inherent in representative democracy |
|
Definition
cant compare alternatives
proceeds problem
Ideology driven |
|
|
Term
| 3 Can Garbage Solution = Window Of Opportunity |
|
Definition
Problems
Policies
Politics |
|
|
Term
|
Definition
three cans line up for policy to be passed
EX. Regan Tax Cuts
EX. Failed Ted Kennedy |
|
|
Term
| Problems with government appearances |
|
Definition
1.Difficult to give value to outputs of beaurocracy- i.e. DMV sucks
2. Targeting-Private sector doesn't care who consumes a good while public targets a demographic. i.e. Get food to the poor for free and to the rich at a price
3. Effects of Limited competition
-Public sector has little incentive for change or innovation. A good worker is not compensated for better work.
4. Civil Service- Incentive to do the minimum, you can't get fired easily in a gov job.
5. Few incentives for elected officials.
dont want to take a public bureaucracy publicly . |
|
|
Term
| Why was 00-10 the lost decade? |
|
Definition
-more gov spending
-lower tax revenue
-lack of growth in real median household income |
|
|
Term
| Three components of The Federal Budget |
|
Definition
Revenues-spending
Mandatory spending- entitlements
-welfare, food stamps, social security 53%of budget
3. Discretionary-Defense spending, education, FBI, CIA |
|
|
Term
|
Definition
The Congressional Budget Office. -Non partisan arm of the congress.
-Optimistic about growth because they assume all policies will continue. |
|
|
Term
|
Definition
| Alternative Minimum Tax. If you have certain qualifications you get a tax deduction. People with high state and local taxes get taxed by this. Not adjusted for inflation. Changed every year. |
|
|
Term
| What do Conservatives and Liberals say about the debt? |
|
Definition
Conservatives say we have a spending problem
Liberals say we have a revenue problem. |
|
|
Term
|
Definition
Government spends more money than it takes in
Total deficits is the national debt |
|
|
Term
|
Definition
No
Significant deficits can accompany economic growth
Economy influences deficits. Poor economy, higher deficit.
Not inherently bad, but why we are running it?
Some deficits are for a purpose
Not severe considering revenue |
|
|
Term
|
Definition
Yes
absorb savings that would otherwise be used for private investments.
Interest rates to rise
Undermines central tenant: current generation has responsibility to leave the world a better place for future generations
Increasing % of debt owned by foreign power |
|
|
Term
| Components of Federal Budget |
|
Definition
Revenues
Mandatory Spending Entitlements = 53%
Discretionary = defense spending non defense,everything else. |
|
|
Term
| Important assumptions about the Economy |
|
Definition
Economy will gradually bounce back
Policies will remain at status quo
AMT
Tax Patch
Medicare pay patch |
|
|
Term
| What are the main features of american gov institutions and our relationship to them |
|
Definition
There is a bias against action because of separation of powers/ checks and balances.
-there is a low trust in government. gov trust has a direct correllation with economic wellbeing |
|
|
Term
| 2 facts about america's revenue |
|
Definition
60% of gov revenue is from taxes
top 1% pay 40% of total taxes. |
|
|
Term
| What were some unintended consequences of cash for clunkers? |
|
Definition
-by destroying old cars prices rise
-fewer parts available so prices rise
-more debt from new car loans
-clunkers driven less than new cars so 61 more gallons burned per year
-Japanese recieved benefit instead of americans bc they made most of the cars |
|
|
