Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 6, Problem 1CQ
To determine
Explain the voter’s information on the candidate’s position on issues.
Expert Solution & Answer
Explanation of Solution
The public choice analysis uses the economic methods and tools to analyze political problems in an economy. This is the study of political decision making that affects the formation of government. According to this study, the political decision making in an economy will be directed by the rational ignorance effect. The voters will be uninformed on many issues due to the presence of rational ignorance effect. As a result, such issues will not enter into their decision making process.
Otherwise, if voters have well information about the issues and the positions of candidates, then there is only zero chance of an individual vote to decide the city. Hence, it is very unlikely that voters will be well informed on issues and the positions of candidates.
Economics Concept Introduction
Rational ignorance effect: The rational ignorance effect indicates that the voters choose to remain uninformed. This is because the marginal cost of obtaining information is higher than the marginal benefit from knowing it.
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1800 tons of pomegranates a year is a lot of sweetness!
So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan for only $1? How do you know that your purchasing power in Afghanistan is stronger than in the United States?
Yes, with an exchange rate of 71 Afghan Afghani for 1 US dollar, you can buy many things in Afghanistan for just $1. However, purchasing power isn't solely determined by the exchange rate. It also depends on the cost of goods and services in each country. For example, if a meal in Afghanistan costs 200 Afghanis, you would need about $2.82 to buy that meal in US dollars (since 200 Afghanis divided by 71 Afghanis per dollar equals approximately $2.82). So, while the exchange rate allows you to get more Afghanis for your dollars, you also need to consider how much things cost in Afghanistan.
Now that the world seems to like Afghani stuff and is buying more of it, does that mean your…
The idea that a country can experience gains from trade means that it can
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Chapter 6 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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