Public Policy Analysis Midterm 1 || with 100% Error-free
Solutions.
What is public policy? correct answers public policy is the process through which we make
collective decisions that are binding upon all affected parties, whether they agree with the
ultimate decision or not. Munger defines public policy as a definite course or method of action
selected (as by a government, institution, group, or individual) from among alternatives. . .to
guide and usually determine present and future decisions; A projected program consisting of
desired objectives and the means to achieve them. (
What is public policy analysis? correct answers policy analysis is the process of assessing and
deciding among alternatives based on their usefulness in satisfying one or more goals or values
Why is policy analysis important for public policy? correct answers policy analysis allows us to
implement public policy better and better public policy leads to more informed decisions, a
better understanding of human behavior, more effective institutions for resolving differences of
opinion, which ultimately leads to people living more productive lives.
Identify and describe at least three of the phases of the policy process from Wheelan's approach
correct answers 1. Identify a social goal: define what the social benefit or the elimination of harm
that can be achieved through effective public action?
2. diagnose the problem: identify what is causing the social harm or preventing the realization of
benefit.
3. Identify the appropriate institution for action who has the authority to change behavior in a
way that will bring about the desired outcome. Public action requires institutions with the
authority to make or change policy, so some entity has to have the authority and capacity to
change behavior.
4. Evaluate the substance and politics of the competing policy options. In this phase you choose
the policy that is most likely to be both successful and politically acceptable.
5. Implement, enforce, and monitor the policy change. A good idea wont change the world until
it is carried out successfully. A policy change may require funding or expertise or some other
process. Therefore it is essential to monitor policies after they are implemented to determine
their true costs.
Both for-profit and non-profit institutions are involved in policy making. With regard to public
services, what is the main difference between for-profit and non-profit institutions? correct
answers For profit firms play an important role in public policy. Many public services are
delivered by the private, for-profit sector because the private for profit sector can produce things
more cheaply, efficiently, and responsively. However for-profit firms will not
Two main distinctions: In nonprofit organizations, any excess of revenues over costs remains
within the organization, there are no "owners" entitled to a profit. In the United States, nonprofit
organizations are exempt from state and federal taxes as set forth in Section 501(c)(3) of the tax
code. So nonprofit organizations play a crucial role in enchancing overall social welfare by
delivering goods and services that are not ordinarily provided by the private sector.
, Name and briefly describe one of the four sources of inherent uncertainty in policy making.
correct answers Scientific uncertainity: incomplete understanding of a problem but need to act
quickly
Human unpredictability: no inmmutable laws of individual behavior
Deliberately hidden information: some individuals/institutions prefer to operate in secrecy
Sheer complexity of life: no two policy problems are exactly the same, neither are any two
moments in time
What are key characteristics of public policy analysis correct answers forward looking, improves
overall welfare of society, recognizes when individuals/firms are best left on their own vs. when
communal action can make society better off
Name and briefly describe the essential elements of a problem statement? correct answers
Magnitude/extent of the harm or problem: you want to describe the problem and the scope of the
problem
Key stakeholders & how they are affected by the proposal: who is impacted and why they are
relevant
Behavioral linkage: identifying how the behavior causes the harm. Essentially figuring out why
did your problem happen
Define criteria. Provide at least three examples of criteria. correct answers Criteria is the basis
judging or choosing and we use them to decide how we decide between competing alternatives.
- criteria: cost, recidivism
+ criteria: equity, freedom, expediency
What does Munger have to say about 3 options for addressing natural monopolies correct
answers Natural monopiles exist in industries with high fixed costs and declining average costs,
such as electric power.
1.) Accept the technological inefficiency of many firms competition
2.) suffer the economic inefficency of monopoly output restriction and overpricing
3.) regulate the monopoly by mandating rates to be charged and the return that can be earned on
investment (rate limit and return on investment cap)
Identify and describe three (3) of the seven elements of argumentation. correct answers claim,
information, warrant, backing, objection, rebuttal, qualifier
What are the three parts to argumentation correct answers Element (Claim, Information,
Warrant, Backing, Objection, Rebuttal, Qualifier) + Mode (Authority, Intuition, Motivation,
Method, Generalization, Parallel Case, Analogy, Classification, Ethics, Cause, Sign) + Type
(definitive, designative, evaluative, advocative)
Claim correct answers conclusion/contention of a policy argument, supported by policy-relevant
information
Solutions.
What is public policy? correct answers public policy is the process through which we make
collective decisions that are binding upon all affected parties, whether they agree with the
ultimate decision or not. Munger defines public policy as a definite course or method of action
selected (as by a government, institution, group, or individual) from among alternatives. . .to
guide and usually determine present and future decisions; A projected program consisting of
desired objectives and the means to achieve them. (
What is public policy analysis? correct answers policy analysis is the process of assessing and
deciding among alternatives based on their usefulness in satisfying one or more goals or values
Why is policy analysis important for public policy? correct answers policy analysis allows us to
implement public policy better and better public policy leads to more informed decisions, a
better understanding of human behavior, more effective institutions for resolving differences of
opinion, which ultimately leads to people living more productive lives.
Identify and describe at least three of the phases of the policy process from Wheelan's approach
correct answers 1. Identify a social goal: define what the social benefit or the elimination of harm
that can be achieved through effective public action?
2. diagnose the problem: identify what is causing the social harm or preventing the realization of
benefit.
3. Identify the appropriate institution for action who has the authority to change behavior in a
way that will bring about the desired outcome. Public action requires institutions with the
authority to make or change policy, so some entity has to have the authority and capacity to
change behavior.
4. Evaluate the substance and politics of the competing policy options. In this phase you choose
the policy that is most likely to be both successful and politically acceptable.
5. Implement, enforce, and monitor the policy change. A good idea wont change the world until
it is carried out successfully. A policy change may require funding or expertise or some other
process. Therefore it is essential to monitor policies after they are implemented to determine
their true costs.
Both for-profit and non-profit institutions are involved in policy making. With regard to public
services, what is the main difference between for-profit and non-profit institutions? correct
answers For profit firms play an important role in public policy. Many public services are
delivered by the private, for-profit sector because the private for profit sector can produce things
more cheaply, efficiently, and responsively. However for-profit firms will not
Two main distinctions: In nonprofit organizations, any excess of revenues over costs remains
within the organization, there are no "owners" entitled to a profit. In the United States, nonprofit
organizations are exempt from state and federal taxes as set forth in Section 501(c)(3) of the tax
code. So nonprofit organizations play a crucial role in enchancing overall social welfare by
delivering goods and services that are not ordinarily provided by the private sector.
, Name and briefly describe one of the four sources of inherent uncertainty in policy making.
correct answers Scientific uncertainity: incomplete understanding of a problem but need to act
quickly
Human unpredictability: no inmmutable laws of individual behavior
Deliberately hidden information: some individuals/institutions prefer to operate in secrecy
Sheer complexity of life: no two policy problems are exactly the same, neither are any two
moments in time
What are key characteristics of public policy analysis correct answers forward looking, improves
overall welfare of society, recognizes when individuals/firms are best left on their own vs. when
communal action can make society better off
Name and briefly describe the essential elements of a problem statement? correct answers
Magnitude/extent of the harm or problem: you want to describe the problem and the scope of the
problem
Key stakeholders & how they are affected by the proposal: who is impacted and why they are
relevant
Behavioral linkage: identifying how the behavior causes the harm. Essentially figuring out why
did your problem happen
Define criteria. Provide at least three examples of criteria. correct answers Criteria is the basis
judging or choosing and we use them to decide how we decide between competing alternatives.
- criteria: cost, recidivism
+ criteria: equity, freedom, expediency
What does Munger have to say about 3 options for addressing natural monopolies correct
answers Natural monopiles exist in industries with high fixed costs and declining average costs,
such as electric power.
1.) Accept the technological inefficiency of many firms competition
2.) suffer the economic inefficency of monopoly output restriction and overpricing
3.) regulate the monopoly by mandating rates to be charged and the return that can be earned on
investment (rate limit and return on investment cap)
Identify and describe three (3) of the seven elements of argumentation. correct answers claim,
information, warrant, backing, objection, rebuttal, qualifier
What are the three parts to argumentation correct answers Element (Claim, Information,
Warrant, Backing, Objection, Rebuttal, Qualifier) + Mode (Authority, Intuition, Motivation,
Method, Generalization, Parallel Case, Analogy, Classification, Ethics, Cause, Sign) + Type
(definitive, designative, evaluative, advocative)
Claim correct answers conclusion/contention of a policy argument, supported by policy-relevant
information
