Give two examples of possible net surpluses

Assignment Help Business Economics

Reference no: EM13895835

1. Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your second example so that the alternative that wins a majority vote generates the least total net surplus. Explain why this happens.

2a. Describe three different ways in which political decisions in the U.S. are influenced by market-like processes (interaction of supply and demand for factors that determine the political decisions). b. Explain why the first fundamental welfare theorem does not imply that these market-like processes or forces on political decisions lead to Pareto efficient political decisions. What are the main reasons why these market-like processes or forces might not increase the social efficiency of political decisions?

Reference no: EM13895835

Questions Cloud

Public pension system on private saving depend : Why does the effect of a pay-as-you-go (PAYGO) public pension system on private saving depend on the reasons people have for saving? b. Summarize the conclusions discussed in class about the likely effect of the U.S. Social Security system on private..

What are some arguments for rousseau''s theories : What are some arguments for/against Rousseau's theories? and What is the general idea Rousseau is portraying?

About the likely net benefits of the proposed plan for home : Brunner and coauthors (2001) studied home ownership and median incomes in different California communities and their connection with voting on a proposal to promote school choice. What does this fact suggest about the likely net benefits of the propo..

Weighted average cost of capital for amazon : WEIGHTED AVERAGE COST OF CAPITAL for Amazon (WACC) with financial statements, details of cost of capital and valuation calculations, table summarizing the inputs and assumptions used for estimating WACC Estimate the components of the cost of capital..

Give two examples of possible net surpluses : Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your seco..

Examine the risks and vulnerabilities : Examine the risks and vulnerabilities

Some of positive and negative aspects of technology growth : What are some of the positive and negative aspects of technology growth? What can businesses and governments do, as they tried to do in Ohio, to make “transition” as smooth as possible?

Transaction interest rate-what is amount of first payment : Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now a..

Cause of the changes in each nation : Explain the cause of these changes in each nation, including the conditions that led to both the American and French revolutions and possible reasons for the very different outcomes in the revolutions.

User Account

All Pages