Chapter 5: Q4. (page 114)
True or False: The median-voter model explains why politicians so often stake out fringe positions that appeal only to a small segment of the electorate.
Short Answer
The statement is true.
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Chapter 5: Q4. (page 114)
True or False: The median-voter model explains why politicians so often stake out fringe positions that appeal only to a small segment of the electorate.
The statement is true.
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"The problem with our democratic institutions is that they don't correctly reflect the will of the people! If the people鈥攔ather than self-interested politicians or lobbyists鈥攈ad control, we wouldn't have to worry about the government taking actions that don't maximize allocative and productive efficiency." Critique.
Jean-Baptiste Colbert was the Minister of Finance under King Louis XIV of France. He famously observed, "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing." How does his comment relate to the special-interest effect?
Explain: 鈥淧oliticians would make more rational economic decisions if they weren鈥檛 running for re-election every few years.鈥
Use the distinction between the characteristics of private goods and public goods to determine whether the following should be produced through the market system or provided by government: (a) French fries, (b) airport screening, (c) court systems, (d) mail delivery, and (e) medical care. Explain your answers.
Look back at Figures 5.2a and 5.2b, which show the costs and benefits to voters Garcia, Johnson, and Lee of two different public goods that the government will produce if a majority of voters support them. Suppose that Garcia, Johnson, and Lee have decided to have one single vote at which the funding for both of those public goods will be decided simultaneously.
a. Given the $300 cost per person of each public good, what are Garcia鈥檚 net benefits for each public good individually and for the two combined? Will she vote yes or no on the proposal to fund both projects simultaneously?
b. What are Lee鈥檚 net benefits for each public good individually and for the two combined? Will she vote yes or no on the proposal to fund both projects simultaneously?
c. What are Johnson鈥檚 net benefits for each public good individually and for the two combined? Will he vote yes or no on the proposal to fund both projects simultaneously鈥攐r will he be indifferent?
d. Who is the median voter here? Whom will the two other voters be attempting to persuade?
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