bcaplan@gmu.edu
http://www.bcaplan.com
Econ
410
HW#5 (Answer any 9 questions. Please TYPE all answers).
1. Describe a specific political failure that
Wittman would argue depends on the assumption of "extreme voter
stupidity." Explain his
argument. (3-4 sentences)
2. Describe a specific political failure that
Wittman would argue depends on the assumption of "serious lack of
competition." Explain his argument. (3-4 sentences)
3. Describe a political failure that Wittman
would argue depends on the assumption of "excessively high
negotiation/transfer costs."
Explain his argument. (3-4
sentences)
4. "Government has grown to an enormous
size because voters have no idea what is going on, and politicians and special
interests do." How would Wittman
respond to this complaint? (3-4
sentences)
5. Pick the worst case of political failure you
can think of. How would Wittman respond
to your example? (3-4 sentences)
6. Suppose the per-capita instrumental value of
policy A is -$1000, the expressive value of A is +$10, the instrumental value
of B is +$1000, and the expressive value of B is -$10. What is the crucial variable that
determines which policy a voter will select?
When will the voter be indifferent between A and B? Solve mathematically.
7. True, False, and Explain: Markets,
unlike democracy, ignore the importance of expressive value. (2-3 sentences)
8. Select a specific environmental problem. How would expressive voting theory explain
public opinion and policy regarding this problem? (3-4 sentences)
9. Give contrasting examples of rational ignorance
and rational irrationality.
10. Select a popular economic fallacy. How does the popularity of this fallacy
affect actual economic policy? (3-4 sentences)
11. Explain how voting for counter-productive
policies (like the minimum wage) can be privately optimal but socially
inefficient. (2-3 sentences)
12. Why, according to Caplan, does democracy fail
to compensate for - or counter-act -expressive voting and rational irrationality? (3-4 sentences)