ETHICS AND PUBLIC POLICY FINAL EXAM
PREPARATION 2026 ACCURATE
QUESTIONS AND ANSWERS
●● Policy Research. Answer: Research that informs policy decisions and
helps answer policy questions.
●● Rationales for Government Intervention. Answer: Reasons for
government action, including correcting market failures, coordinating
activities, and promoting values.
●● Market Failures. Answer: Situations where the market does not
allocate resources efficiently, necessitating government intervention.
●● Public Goods. Answer: Goods that are non-excludable and non-
rivalrous, leading to market failure.
●● Externalities. Answer: Costs or benefits that affect third parties not
involved in a transaction.
●● Positive Externality. Answer: When an action benefits others who are
not part of the group doing it.
PREPARATION 2026 ACCURATE
QUESTIONS AND ANSWERS
●● Policy Research. Answer: Research that informs policy decisions and
helps answer policy questions.
●● Rationales for Government Intervention. Answer: Reasons for
government action, including correcting market failures, coordinating
activities, and promoting values.
●● Market Failures. Answer: Situations where the market does not
allocate resources efficiently, necessitating government intervention.
●● Public Goods. Answer: Goods that are non-excludable and non-
rivalrous, leading to market failure.
●● Externalities. Answer: Costs or benefits that affect third parties not
involved in a transaction.
●● Positive Externality. Answer: When an action benefits others who are
not part of the group doing it.
