PSC Public Policy Analysis 1 — Questions and Answers
Question 1: In the policy cycle model, which stage involves identifying a problem and bringing it to government attention?
- Policy formulation
- Policy evaluation
- Agenda setting (Correct answer)
- Policy implementation
Correct answer: Agenda setting
Agenda setting is the stage where problems gain sufficient attention from policymakers and the public to be considered for government action.
Question 2: A 'means-tested' government benefit program is one that:
- Requires recipients to pass a knowledge test
- Is available only to people below a certain income threshold (Correct answer)
- Provides benefits based on prior contributions
- Is funded by a dedicated payroll tax
Correct answer: Is available only to people below a certain income threshold
Means-tested programs like Medicaid and SNAP restrict eligibility to individuals or families whose income and assets fall below defined thresholds.
Question 3: Cost-benefit analysis in public policy involves:
- Comparing only the direct financial costs of a program
- Weighing all social costs and benefits to determine if a policy produces net gains (Correct answer)
- Measuring only the economic benefits to businesses
- Calculating the administrative costs of a program
Correct answer: Weighing all social costs and benefits to determine if a policy produces net gains
Cost-benefit analysis systematically compares the total expected benefits of a policy against its total expected costs, including social and environmental impacts, to guide decisions.
Question 4: Which term describes the phenomenon where government programs, once established, are very difficult to eliminate even when they become ineffective?
- Policy diffusion
- Bureaucratic capture
- Policy entrenchment (Correct answer)
- Incrementalism
Correct answer: Policy entrenchment
Policy entrenchment occurs because beneficiary groups, agency staff, and congressional supporters create strong constituencies that resist program termination.
Question 5: The 'iron triangle' in U.S. policy-making refers to the alliance among:
- President, Senate, and House
- Federal, state, and local governments
- Congressional committees, interest groups, and bureaucratic agencies (Correct answer)
- Democrats, Republicans, and independents
Correct answer: Congressional committees, interest groups, and bureaucratic agencies
The iron triangle describes the mutually reinforcing relationships among relevant congressional committees, lobbying groups, and executive agencies that dominate policy in specific areas.
Question 6: Which policy instrument uses financial incentives or penalties to change behavior rather than direct mandates?
- Regulatory command-and-control
- Market-based instruments (Correct answer)
- Public information campaigns
- Government provision of services
Correct answer: Market-based instruments
Market-based instruments like carbon taxes or cap-and-trade systems use price signals to encourage desired behavior rather than prescribing specific actions.
PSC Public Policy Analysis 1
In the policy cycle model, which stage involves identifying a problem and bringing it to government attention?