TEMPLE COLLEGE
GOVT 2301
SUMMER 1, 2001
EXAM #1
This exam is composed of seven (7) parts. Read and follow the instructions for
each part carefully. The exam is worth 100 points total.
Do not converse with your classmates during the exam. If you have any
questions, ask the instructor. Of course, you are not permitted to use any class
notes or any other aids while taking this exam. Clear your desk of everything
except your blue book and a pen.
Write your answers legibly in your blue book. This means two things: [1] write
neatly and [2] write large enough for the instructor to read your answers without
having to strain his eyes. Use blue or black ink to write your answers. The
instructor will not accept answers written in pencil. Scratch-outs are permitted;
however, please do not attempt to “squeeze” words and sentences into the
available space above or below a “scratch out.” Pay attention to grammar usage
and spelling. Use complete sentences.
Place this exam inside the front cover of your blue book when you have
completed the exam and turn it in to the instructor.
You have the entire period to complete the exam, if necessary. If you do not use
the entire period, you are free to leave once you have completed and turned in
the exam. We will not attempt to hold a class session after the exam.
Relax and do your best work.
PART I. SHORT ANSWER 1. Answer the following in a well-developed paragraph.
20 points
Joseph Goodhair is the governor of a medium-sized mid-western state. His term of
office is scheduled to come to an end with the general election in November. Over the
course of the last several months, he has given considerable thought to his future
political fortunes. He has been a highly successful first-term Republican governor (in a
traditionally Democratic state), so successful in fact that he regarded himself as a shooin for reelection, if he chose to run again. It was well known, however, that Governor
Goodhair was being mentioned among Republican Party operatives as a prospective
presidential or vice presidential nominee for the Republicans in the next presidential
election (two years from now). They conceded that to be taken seriously, Goodhair
would have to take steps to increase his national visibility. Goodhair has told his closest
confidantes that he would love the opportunity to run on the presidential ticket.
To complicate things further, this year also marks the conclusion of the term of Edward
Entrenchment, the five term senior senator from the state. Early in the spring, Senator
Entrenchment announced he would seek reelection to the Senate. Conservative
Republicans, not only in the state but nationwide as well, despise Entrenchment, viewing
him as a serious impediment to their agenda. If Goodhair chose not to run for reelection
to the governor’s office, but instead decides to challenge Senator Entrenchment, most
observers believe the race would be a toss-up.
There are three possible scenarios. [1] Goodhair could run for reelection as governor,
his success virtually assured. However, as governor, his national visibility would remain
limited and his chances of being selected to run on the Republican presidential ticket
would not be especially good. If he was to be reelected to the governor’s office, he
could (two years from now) challenge the state’s junior senator, Biff Youngman, with a
much better chance of victory than in a race against Entrenchment. However, Goodhair
would then have to wait until the subsequent presidential election cycle (6 years away)
to be considered a possible candidate on the Republican ticket. [2] He could challenge
Senator Entrenchment and win, thereby not only increasing his national visibility for the
next two years, but also establishing his reputation among conservative Republicans, as
the “man who beat Entrenchment.” [3] He could run against Entrenchment and lose,
thereby quashing any of his near-term political ambitions by being branded as loser.
Governor Goodhair would prefer being senator (and a possible candidate on the
presidential/vice-presidential ticket) than being elected to a second gubernatorial term.
However, he would prefer a second term as governor (and thus a shot at running against
Youngman in two years) than being out of politics. But Goodhair cannot choose directly
from among these preferences. That is, he cannot choose to be senator or to be
governor or to be out of politics. Rather, his behavioral options are [1] run for reelection
as governor or [2] run for senator against Entrenchment. We can equate option 1 with
“serving a second term as governor” since reelection is considered a near certainty. But
option 2 has much more uncertainty associated with it.
In the end, Goodhair decided to run for reelection to the governor’s office.

Determine whether Governor Goodhair’s decision was rational. In your answer, be
sure to [1] describe what is meant by rational behavior and [2] discuss why you
believe or do not believe his behavior to be rational.
PART II. SHORT ANSWER 2. Answer the following in a well-developed paragraph.
10 points

Discuss Laswell’s, Easton’s, and Feagin’s definitions of politics. [Do NOT simply
write each of the three definitions, rather explain why each of the definitions are good
definitions of politics.]
PART III. SHORT ANSWER 3. Answer the following in a well-developed paragraph.
10 points

Outline and discuss public policy’s five defining characteristics.
PART IV. SHORT ANSWER 4. Answer the following in a well-developed paragraph.
10 points

Discuss the five stages of the policy-making process (the production line model).
Outline the actors and activities that may be involved in each stage.
PART V. SHORT ANSWER 5. Answer one [1] of the following in a well-developed
paragraph. 10 points

Identify and discuss the basic tenets of capitalism.
Or

Discuss two broad types of economic functions performed by government in the
United States, providing examples of each.
PART VI. SHORT ANSWER 6. Answer the following in a well-developed paragraph.
10 points

Explain when government should pursue an expansionary fiscal policy and when it
should pursue a contractionary fiscal policy according to keynesian economic theory.
Discuss what each of these entail. Outline the timing and political problems
encountered when applying fiscal policy in the “real world.”.
PART VII. IDENTIFICATION ITEMS. Identify the importance of ten (10) of the
following in 2 or 3 sentences for each pair. Your answer should go beyond a
simple definition of the terms by briefly explaining why it is important to
distinguish between the two juxtaposed terms. 3 points each/30 points total.

negative externality vs positive externality

progressive tax vs regressive tax

centrally-planned economy vs mixed economy

market socialism vs market capitalism

command socialism vs command capitalism

official agenda vs public agenda

implementing actions vs policy statements

efficient outcome vs deadweight loss

monopoly vs ‘natural monopoly’

reservation price vs consumer’s surplus

normative theory vs empirical analysis

laissez-faire capitalism vs Keynesian economics