Chapter 18: Public Economy

What is the main factor preventing a large community from influencing policy in the same way as a special interest group?

Why might legislators vote to impose a tariff on Egyptian cotton, when consumers in their districts would benefit from its availability?

True or false: The majority rule can fail to produce a single preferred outcome when there are more than two choices.

Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first, second, and third choice and then vote on the options. Table 18.2 shows their first, second, and third choice preferences. Explain why they will have a hard time reaching a decision. Does the group prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking?

Suppose there is an election for Soft Drink Commissioner. The field consists of one candidate from the Pepsi party and four from the Coca-Cola party. This would seem to indicate a strong preference for Coca-Cola among the voting population, but the Pepsi candidate ends up winning in a landslide. Why does this happen?

How does rational ignorance discourage voting?

How can a small special interest group win in a situation of majority voting when the benefits it seeks flow only to a small group?