In the context of Buchanan and Tullock’s framework, suppose that an increase in polarization has raised the costs of decision-making. Additionally, external costs on the minority have increased as well. However, the decision-making costs have risen more significantly than the external costs. What is the effect on the equilibrium percent level of agreement and the total cost of collective decision-making?
Read DetailsSuppose Margaret and Thomas are the only two homeowners in the neighborhood. Margaret’s demand for clean streets is Q = 50 – 2P. Thomas’s demand for clean streets is Q = 40 – P. What is the socially optimal number of clean streets if the marginal cost of cleaning them is $35?
Read DetailsLong Answer Question. The response is worth 25 points. Question 27: Choose one of the four options below. The response should be written as a five paragraph essay. Option 1: What are the roles of prices in a market economy and what different methods exist to help guide decisions on resource allocation when market prices are not readily available? Option 2: What are the benefits and costs of federalism? Option 3: What are the three pillars of public choice and what difference does it make to evaluate political action through the lens of public choice? Option 4: To what extent are strong communities necessary for the preservation of liberty?
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