Problem 4
In a runoff election, if no candidate receives a majority of votes in the first round of voting, the top two candidates face each other in a second round. Let's say that people voting on Candidates A, B, \(C,\) and \(D\) in a runoff election have the following preferences. [LO 22. 2] 12 voters: \(\quad \mathrm{A}>\mathrm{B}>\mathrm{C}>\mathrm{D}\) 8 voters: \(\quad C>B>D>A\) 10 voters: \(\quad \mathrm{D}>\mathrm{B}>\mathrm{C}>\mathrm{A}\) 4 voters: \(\quad \mathrm{B}>\mathrm{D}>\mathrm{A}>\mathrm{C}\) a. Does anyone receive an outright majority in the first round? If so, which candidate? If not, which two candidates move on to the second round, and which of them wins? b. Suppose Candidate A drops out of the race. Does any candidate now receive an outright majority in the first round? If so, which candidate? If not, which two candidates move on to the second round, and which of them wins? c. Does this situation violate the independence of irrelevant alternatives?
Problem 5
According to the rational voter theory, will the following increase or decrease voter turnout? \(\left[\mathrm{LO}_{22}, 3\right]\) a. Electronic voting machines make the process of casting a ballot faster and less complicated. b. 24 -hour news networks emphasize how close they expect the election to be, with only a few thousand votes deciding the outcome. c. The number of polling stations increases. d. Pollsters predict a landslide victory for the incumbent candidate a few days before the election.
Problem 6
Determine whether each of the following represents rational ignorance. [LO 22.3] a. Doug doesn't know the retum on his retirement account in the last quarter or the types of investments that comprise the account. b. Sally doesn't know about a new provision in nuclear energy regulation, which is decided by a national panel overseen by nuclear physicists. c. Jim doesn't know whether to support new requirements for licensing among city contractors. d. Tom doesn't know the average price of a parking ticket, despite parking on the street every day.
Problem 7
For each of the following, state who benefits and who bears the costs, and whether the costs and benefits are concentrated or diffuse. Based on this assessment, predict which side is likely to get its way. [LO 22.4] a. A rubber producer lobbies the government to. prohibit the import of cheaper foreign rubber, driving up the cost of consumer goods. b. The government increases federal gas taxes by 1 cent per gallon to finance building high-speed train routes between major East. Coast cities.
Problem 8
For each of the following conditions, determine. whether a collective-action problem exists. \(\left[\mathrm{LO}_{22.4}\right]\) a. Diffuse benefits, diffuse costs. b. Diffuse benefits, concentrated costs. c. Concentrated benefits, diffuse costs. d. Concentrated benefits, concentrated costs.
Problem 9
Decide which of these labels best fits each of the following situations: rent- seeking, corruption, or bureaucratic capture. (If more than one is potentially applicable, pick the one that is the most narrowly tailored to the scenario.) [LO 22,5] a. A contract manager at a government department is bribed to ensure that his friend's company gets a construction contract even though it was not the lowest bidder. b. A senior-citizens group lobbies the city government to spend more on special public-transit shuttles for the elderly. c. The president appoints a former head of an investment bank to the Securities and Exchange Commission (which oversees capital markets and enforces financial regulations). d. The head of a local teachers' union offers support to a political candidate in exchange for her promise to spend more of the state budget on teacher salaries.
Problem 10
Determine whether each of the following shifts is likely to increase or decrease the prevalence of rent-seeking. [LO 22.5] a. The spread of smartphones enables more widespread access to information. b. Judges strike down a law that forces politicians to report when they receive a gift worth over \(\$ 500\). c. Congress passes a law requiring lobbyists to spend at least two years in another unrelated position before getting hired in government to regulate the industries they were advocating for as lobbyists.
