Political Economy Assume there are three voters: A, B and C. Voter preferences can be ranked along a left-to-right spectrum that ranges from 1-9; 1 being the most left leaning preference and 9 being the most right leaning preference. Suppose these voters will choose between candidates Smith and Jones in an upcoming election. Voter Id Preference(1-9) A 4 B 5 C 6 True/False Explain: If the median voter theorem holds, candidates Smith and Jones will either both adopt preference 5 OR one will adopt preference 4 while the other adopts preference 6. Suppose the electorate becomes more polarized; A moves from 4 to 1 while C moves from 6 to 9. B remains at 5. How does the median voter model predict candidates Smith and Jones will change their preference? Keeping the assumptions from B, how does the election result change if a tax on non-voters doubles the number of voters while preserving the distribution of preferences? If the tax in C induces 100% compliance (everyone votes), did this tax increase total surplus, decrease total surplus or have no effect on total surplus?
Political Economy Assume there are three voters: A, B and C. Voter preferences can be ranked along a left-to-right spectrum that ranges from 1-9; 1 being the most left leaning preference and 9 being the most right leaning preference. Suppose these voters will choose between candidates Smith and Jones in an upcoming election. Voter Id Preference(1-9) A 4 B 5 C 6 True/False Explain: If the median voter theorem holds, candidates Smith and Jones will either both adopt preference 5 OR one will adopt preference 4 while the other adopts preference 6. Suppose the electorate becomes more polarized; A moves from 4 to 1 while C moves from 6 to 9. B remains at 5. How does the median voter model predict candidates Smith and Jones will change their preference? Keeping the assumptions from B, how does the election result change if a tax on non-voters doubles the number of voters while preserving the distribution of preferences? If the tax in C induces 100% compliance (everyone votes), did this tax increase total surplus, decrease total surplus or have no effect on total surplus?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- Political Economy Assume there are three voters: A, B and C. Voter preferences can be ranked along a left-to-right spectrum that ranges from 1-9; 1 being the most left leaning preference and 9 being the most right leaning preference. Suppose these voters will choose between candidates Smith and Jones in an upcoming election.
Voter Id |
Preference(1-9) |
A |
4 |
B |
5 |
C |
6 |
True/False Explain: If the median voter theorem holds, candidates Smith and Jones will either both adopt preference 5 OR one will adopt preference 4 while the other adopts preference 6.
- Suppose the electorate becomes more polarized; A moves from 4 to 1 while C moves from 6 to 9. B remains at 5. How does the median voter model predict candidates Smith and Jones will change their preference?
- Keeping the assumptions from B, how does the election result change if a tax on non-voters doubles the number of voters while preserving the distribution of preferences?
- If the tax in C induces 100% compliance (everyone votes), did this tax increase total surplus, decrease total surplus or have no effect on total surplus?
- Wealth Taxes/Mankiw, Saez and Summers
Suppose people can consume the income they earn or save and invest it at rate ?.
- If we tax wealth at a rate greater than ?, how are people likely to adjust their rate of savings?
- Use the Solow model to comment on how a wealth tax will likely affect the growth rate of the capital stock. How will this policy affect the growth rate of output per worker? How will this policy affect the wage rate for workers?
- To what extent is this wealth tax likely to reduce the influence of the wealthy in politics?
D. In the Peterson Institute discussion, Greg Mankiw argues that accumulating wealth creates a pecuniary externality. What does Mankiw mean? How would you expect a wealth subsidy to affect the real wage for workers?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Write an introduction
VIEWStep 2: 1. Analyze if the given statement is True/False
VIEWStep 3: 2. Predict the preference of the candidate according to the theorem
VIEWStep 4: 3. Analyze how the election result changes, given the scenario
VIEWStep 5: 4. Analyze the effect on the surplus
VIEWSolution
VIEWStep by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education