Unit 6 Quiz Answer Key
Multiple Choice
1. A. For more information, please reread GOP.com’s “United States Republican Party
2008 Platform” in sub-subunit 6.1.1.
2. B. For more information, please reread Democrats.org’s “What We Stand For” in
sub-subunit 6.1.2.
3. C. For more information, please reread cdu.de’s “The Christian Democratic Party of
Germany” in sub-subunit 6.1.3.
4. B. For more information, please reread ndp.ca’s “The 2011 Constitution of the New
Democratic Party of Canada” in sub-subunit 6.1.4.
5. C. For more information, please reread gp.org’s “The Green Party of the United
States Platform 2010” in sub-subunit 6.1.5.
6. D. For more information, please reread NCG’s “Phases of the Public Policy Life
Cycle” in sub-subunits 6.2.1-6.2.4.
7. A. For more information, please reread NCG’s “Phases of the Public Policy Life
Cycle” in sub-subunits 6.2.1-6.2.4.
8. C. For more information, please review YouTube: zsezse’s “Eisenhower’s
Farewell Address (Jan 17, 1961): Part 1 and Part 2” and noitv’s “The Iron Triangle
– The Carlisle Group” in sub-subunit 6.2.5.
9. C. For more information, please reread EconomicThinking.org: Gregory F. Rehmke’s
“Parallel Societies” in sub-subunit 6.3.1.
10. B. For more information, please reread voxeu.org: Paul Romer’s “Cutting the
Corruption Tax” in sub-subunit 6.3.2.
Short Answer
Answers will vary. Please see the following sample answers.
1. Conservatism focuses on economic freedom and is wary of government intervention
in markets. Conservatives generally advocate for:
- individual and corporate property rights
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- low taxes
- high military spending
- favor state authority over civil rights in national security issues
Liberalism instead focuses on the primacy of civil rights and argues for greater
government intervention to regulate and reform capitalism. Liberals generally advocate
for:
- policies that help political minorities fight past and present discrimination
- policies that redistribute wealth to promote greater equality (higher taxes on
wealthy and corporations)
- strong protection of free speech, free press, right to trial, etc.
- government regulation and programs to provide public goods (clean
environment, retirement income, public health, etc.)
2.
Conservative
Liberal
U.S.
Republican Party
Democratic Party
UK
Canada
Conservative Party Conservative Party
Liberal Democrats Liberal Party
3. Social democratic ideology argues that the ultimate goal of modern economics is to
provide for the common good of citizens rather than produce individual profit. As such,
for social democrats, the state should have a prominent role in regulating capitalism.
Here, the argument is made that the state is the appropriate and necessary entity to
redistribute wealth, protect the environment, enforce labor laws, and provide health and
security for citizens.
4.
UK
Social Democratic Labour Party
Canada
New Democratic
Party
Germany
Social Democratic
Party
5. There are five phases to public policy life cycle:
i. Problem definition: Policy development starts with problem definition. During
this stage, a problem is identified and examined, and possible solutions are
explored through research and analysis.
ii. Agenda setting: The next step is agenda-setting. During this stage, efforts are
used to raise the profile of the problem and possible solutions among the public
and decision-makers.
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iii. Policy adoption: Next, policymakers discuss options and possible solutions
and adopt new or amend existing policy.
iv. Implementation: The policy choice is put into action.
v. Evaluation: After a policy is implemented, it is important to evaluate its
effectiveness. Policy research and analysis are strategies to evaluate
whether the policy meets its original intentions and if there are any unintended
outcomes. If the policy is not successful on any level, evaluation findings can be
used during a new phase of problem definition. The policy life cycle begins again
and continues until an effective policy is created and successfully
implemented.
6. Various factors can influence the speed of public policy change. These include the
depth of the issue, the people involved, and the intricacy of the policy itself.
7. As initially noted by President Eisenhower in his farewell address in 1961, the Cold
War era had produced a permanent war time economy in the United States. Here, the
combination of a large military establishment and corporate interests tied to defense
spending has evolved into what Eisenhower the “military-industrial complex.” Another
component of this dynamic involves lobbying. There is concern that there is a ‘revolving
door’ between individuals who are elected or serve in the government supportive of high
military spending and their subsequent lobbying activities on behalf of military
corporations once they leave office. This reinforces perpetual and perhaps
disproportionately high military expenditure to the detriment of other domestic priorities.
8. As outlined in the article by Rehmke, many countries around the world exhibit strong
‘informal’ societies. By informal activity, we mean activities that stand outside the scope
of official government regulation and oversight. Informal economic activity, for example,
includes market transitions between buyers and sellers that are not formally recognized,
regulated, or taxed by the government. In the political realm, informal activity often
involves activity considered illegal by the government. In repressive societies, this can
include underground journalism, literature, art, or political expression critical of the
current government.
When assessing the positive impact of informal activity on governance, we see that
informal political activity can be an important source of political resistance and
organizing for positive change. In former authoritarian communist states, for example,
the informal sphere of writers and artists were important variables in democratizing
these societies. Relative to economic activity, Rehmke makes the argument that in
many developing societies, the black market is a key player in producing goods and
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services efficiently. In these societies (e.g., Peru), Rehmke makes the argument that
the formal economy has traditionally been controlled by elites who use their political
power to skew markets to serve their interests. In these societies, Rehmke argues that
the black market is therefore not only more efficient, but more equitable and generally
much less prone to corruption than formal economic activity. Do you agree with this
assessment?
9. As outlined by Romer, corruption can be thought of as a tax on businesses and
individual consumers. Why? In many societies, in order to have access to the market,
entrepreneurs and corporations have to pay off government officials and/or politicians.
This can come through various forms including bribes, employment of local citizens, and
patronage to elites. This cost at some point is passed on to the consumer either
through higher prices or inefficiency.
10. According to various studies on corruption, there is a strong positive correlation
between high levels of corruption and fiscal deficits. Why? In highly corrupt societies,
we generally have the following dynamics:
i. Tax laws which are not strongly reinforced
ii. A strong informal economic sector which produces no taxable income for the
government
iii. Bloated public sector employment where politicians ‘buy’ off votes through
employment of citizens
iv. Inept oversight of government finances
Putting these dynamics together, there is a tendency for high spending and low
taxation, producing fiscal deficits.
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