Test #2, Section 1             

 PAD 5025: PUBLIC MANAGEMENT/Spring 2021

Test #2, Section 1             

  1. During the era of cooperative federalism,
  2. intergovernmental relations tended to gravitate more towards the center.
  3. states became more proactive and gained more powers.
  4. there was contentious relations between the states and the federal government.
  5. there tended to be a balance in powers shared by the states and the center.
  • The value of what a resource could have produced had it been used in the best alternative way, i.e., the cost of deciding to pursue alternative A instead of alternative B, is
  • fixed cost.
  • variable cost.
  • opportunity cost.
  • pecuniary cost.
  • One of the most important features of the era of creative federalism was that
  • the federal government ended up managing an increasingly lower number of programs and lower expenditure of money on such programs.
  • federal agency heads were always quarreling with program managers over allocation of funds and program priorities.
  • the federal center designed creative methods for disbursing federal grants to local governments.
  • federal administrators had to manage a larger and more complex set of public programs that required expanded expenditure of money.
  • Over a two-year period after Operation Cease-Fire began in Boston, not a single juvenile in that city was killed by firearms. What concept does this project best illustrate?     
  • Public-private cooperation
  • Incrementalism
  • Strategic factor
  • Multi-objective model
  • Under the discussion of economic perspectives of federal-state relations, which of the following is NOT an economic argument for justifying federal action?
  • Direct spillovers
  • Globalization
  • Effects of policy-induced mobility
  • Inequality of resources
  • Use this table to answer Question 6:

Given the data above, which of the following statements about how to spend $1 million in a cost-effective manner is correct? Note: the most cost-effective way is to save most lives from both diseases, not just either A or B.

  1. All of the $1 million should go to Disease A.
  2. Spend $400,000 on Disease B and $600,000 on Disease A.
  3. Spend $700,000 on Disease A and $300,000 on Disease B.
  4. Spend half on Disease A and half on Disease B.
  • Which of the following best describes the changes in relative prices that occur as an economy adjusts itself to the provision of public service?
  • Compliance costs
  • Externalities and spillovers
  • Pecuniary benefits and costs
  • Tangible and real benefits
  • The era of “new new federalism” is most closely associated with which President?
  • Ronald Reagan
  • Bill Clinton
  • George W. Bush
  • Jimmy Carter
  • Sui generis problems are best defined as
  • problems associated with crises or life-threatening situations.
  • intractable problems that must be coped with rather than “solved.”
  • cyclical problems.
  • one-of-a-kind problems. 
  • The full faith and credit clause of the Constitution, (under state-state relations aspect of IGR), implies that
  • the rulings of federal district courts should be applied uniformly throughout the United States.
  • the federal government should enforce contracts and rulings of the Supreme Court at the state level.
  • state courts should enforce the civil judgments of the courts of other states and accept their public records as valid.
  • states do not need to enforce civil and criminal judgments of other states.
  1. The basic question that cost-effectiveness analysis attempts to answer is:
  2. how much a public project costs.
  3. how effective the method used in delivering a public service.
  4. how much the cost of materials and supplies.
  5. how much output one gets for a given expenditure.
  1. The concept of bounded rationality and satisficing come from the work of
  2. Peter F Drucker.
  3. Dwight Waldo.
  4. Herbert A. Simon.
  5. Frederick C. Mosher.
  1. Nixon’s __________________ were part of a strategy to give more policymaking discretion and responsibility to the subnational governments.
  2. categorical grants and mandate reform
  3. revenue sharing and block grants
  4. formula grants and project grants
  5. revenue sharing and formula grants
  1. Any relationship in which one party, the principal, considers entering into a contractual agreement with another, the agent, expresses the principal-agent model. Regardless of the reason for relying on an agent, the principal faces what two problems?
  2. Sunk costs and skimming
  3. Design decisions and pricing decisions
  4. Adverse selection and moral hazard
  5. Influence activities and the problem of vertical expansion
  1. Moral hazard
  2. refers to any behavior under contracts that is risky.
  3. refers to any behavior under contracts that is inefficient.
  4. refers to any behavior under contracts that is unethical.
  5. is most closely associated with voluntary associations.


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