Why does not a political equilibrium lead to efficiency in

Assignment Help Microeconomics
Reference no: EM13337805

1. Why does not a political equilibrium lead to efficiency in the way that equilibrium in private goods markets does?

2. Why is a voter in the "middle of the pack" likely to be satisfied with the outcome of political decisions?

Reference no: EM13337805

Questions Cloud

Does the production function exhibits increasing returns to : Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or constant returns to scale? Explain your answer.
Net taxes affect consumption via disposable income : Net taxes affect consumption via disposable income. Do you think that net taxes could affect any of the other components of aggregate expenditures? If yes, explain how.
What is the cost of producing 10 units in the short run : Currently, K = 100. What is the cost of producing 10 units in the short run? Hint: first determine how much labor is needed.
What should be the size of the tax per pact of cigarettes : Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to put a tax on it to reduce asmoking by 20%, what should be the size of the tax per pact of cigaret..
Why does not a political equilibrium lead to efficiency in : Why does not a political equilibrium lead to efficiency in the way that equilibrium in private goods markets does?
During which phases of the business cycle would each : Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? Explain what is meant by a built-in stabilizer and give two examples
Which entree should he choose to put on sale : The owner of a restaurant is considering lowering menu prices to draw in more customers. He is debating between lowering the price for the steak entrée or the salmon entrée. When he lowered prices last year
Higher interest rates less capital invested : Which of these four scenarios are most important today? Your answer may include more than one scenario.
Is natasha risk loving risk neutral : Suppose that Natasha’s utility function is given byu(I) = 10I, where I represents annual income in thousands of dollars.

Reviews

Write a Review

Microeconomics Questions & Answers

  A traditional biography of these economists

1) We are not looking for a traditional biography of these economists, and we are not concerned about their place of birth, marriage(s), schooling, zodiacal symbols, favorite color or animal, except as that informs their work.

  Calculate the expected value of returns of stock

Using Minitab estimate the expected value of its profits and standard deviation of profits and calculate the expected value of returns of stock A & B

  What is the firm fixed cost at this level of output

The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market.

  Define the production function specified

Using the equation in (c) show that if the capital/labor ratio K/L is a constant k, the elasticity of output with respect to labor is b + c. (e) Why are relationships expressed like those in (c) important for doing econometrics? (f) Show that the ..

  What happens to aggregate output and the price level

(Aggregate Demand and Supply) Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction

  When the worlds population is about to collapse

Almost all of the fossil fuels that we are now currently using were formed during the Carboniferous period.  (b) There seems to be a strong correlation between increases in the availability of food energy per person and increases in human populati..

  Why stable monetary policy has been highly erratic

The velocity of M1 money has moved erratically in the past several years because which of low and stable rates of inflation of regulatory changes allowing banks to pay interest on checkable deposits interest rates have been stable monetary policy ..

  Determine the pattern of production and trade

In our treatment of the Ricardian model We have focused on the case of trade involving only two nations. Assume that there are many nations capable of producing two goods

  Find the equilibrium price and quantity

A monopolist firm faces the following cost curve: C(Q) = 10Q + 300, where Q is the output produced. The demand for its product is given by P = 50 - .

  How would you counter the union officials arguement

In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturers. Effecively, this wou..

  When the price of a commodity falls

When the price of a commodity falls by Rs.2 per unit,its quantity demanded increases by 10 units. Its price elasticity of demand is (-)1. Calculate its quantity demanded at the price before change which was Rs.10 per unit. You may change Rupee[In..

  Social cost-benefit analysis

Briefly describe the major categories of expected benefits and expected costs from undertaking the project and explain how and where the value of human lives saved or lost might enter this analysis, and explain whether all of these effects are addr..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd