G202 KREFT FINAL EXAMINATION TEST 1 2026
COMPLETE QUESTIONS AND VERIFIED
ANSWERS
◉ shrink. Answer: does market shrink/expand with a productive
regulation?
◉ expand. Answer: does market shrink/expand with a subsidy?
◉ overproduction/market above Qe. Answer: when should a tax be
in play?
◉ overproduction/market above Qe. Answer: when should a
productive regulation be in play?
◉ underproduction/market below Qe. Answer: when should a
subsidy be in play?
◉ the extra revenue is kept within the supply chain. Answer:
difference between taxes and productive regulations
, ◉ lobbying. Answer: devoting resources to influence public policy
formation to bring more income/support from government to your
group
◉ 1) form coalitions 2) find political opportunities/threats 3)
inform and influence. Answer: lobbyist's goals
◉ small interest effect. Answer: small group of people receive
benefits at expense of large, unorganized group
◉ majoritarian politics. Answer: widely dispersed costs & widely
dispersed benefits
◉ entrepreneurial politics. Answer: concentrated costs & widely
dispersed benefits
◉ interest group politics. Answer: concentrated costs &
concentrated benefits
◉ client politics. Answer: widely dispersed costs & concentrated
benefits
◉ pistachio advertising. Answer: example of client politics
COMPLETE QUESTIONS AND VERIFIED
ANSWERS
◉ shrink. Answer: does market shrink/expand with a productive
regulation?
◉ expand. Answer: does market shrink/expand with a subsidy?
◉ overproduction/market above Qe. Answer: when should a tax be
in play?
◉ overproduction/market above Qe. Answer: when should a
productive regulation be in play?
◉ underproduction/market below Qe. Answer: when should a
subsidy be in play?
◉ the extra revenue is kept within the supply chain. Answer:
difference between taxes and productive regulations
, ◉ lobbying. Answer: devoting resources to influence public policy
formation to bring more income/support from government to your
group
◉ 1) form coalitions 2) find political opportunities/threats 3)
inform and influence. Answer: lobbyist's goals
◉ small interest effect. Answer: small group of people receive
benefits at expense of large, unorganized group
◉ majoritarian politics. Answer: widely dispersed costs & widely
dispersed benefits
◉ entrepreneurial politics. Answer: concentrated costs & widely
dispersed benefits
◉ interest group politics. Answer: concentrated costs &
concentrated benefits
◉ client politics. Answer: widely dispersed costs & concentrated
benefits
◉ pistachio advertising. Answer: example of client politics
