Session:18 Public Economy

Review Questions

Principles of Microeconomics 3e | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-microeconomics-3e

8. How does rational ignorance discourage voting?
9. 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?
10. How can pork-barrel spending occur in a situation of majority voting when it benefits only a small group?
11. Why do legislators vote for spending projects in districts that are not their own?
12. Why does a voting cycle make it impossible to decide on a majority-approved choice?
13. 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?

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