Chapter 18: Public Economy

Based on the theory of rational ignorance, what should we expect to happen to voter turnout as the internet makes information easier to obtain?

How can pork-barrel spending occur in a situation of majority voting when it benefits only a small group?

Why do legislators vote for spending projects in districts that are not their own?

Why does a voting cycle make it impossible to decide on a majority-approved choice?

How does a government agency raise revenue differently from a private company, and how does that affect the way government makes decisions compared to business decisions?

What are some reasons people might find acquiring information about politics and voting rational, in contrast to rational ignorance theory?

What are some possible ways to encourage voter participation and overcome rational ignorance?

Given that rational ignorance discourages some people from becoming informed about elections, is it necessarily a good idea to encourage greater voter turnout? Why or why not?

When Microsoft was founded, the company devoted very few resources to lobbying activities. After a high-profile antitrust case against it, however, the company began to lobby heavily. Why does it make financial sense for companies to invest in lobbyists?

Representatives of competing firms often comprise special interest groups. Why are competitors sometimes willing to cooperate in order to form lobbying associations?