Bundle: Principles of Microeconomics, 7th + Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305124332
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 22, Problem 5CQQ
To determine
The application ofMedian voter theorem.
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The following table shows the number of voters preferring various amounts of spending on
a new school.
Number of Voters
12
33
47
22
6
4
1
Select one:
a. $0.5
b. $1.5
c. $2.0
d. $1.0
Preferred Spending (millions)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Refer to the table above. What is the preferred spending amount of the median voter?
BN10.3
Case:
Your non-profit has just been awarded a special government environmental clean-
up grant of $90,000. You are given the choice to take the $90,000 now or wait
until next year. With an election coming up, the amount of next year's grant will
vary based on which party wins. Assuming that money tomorrow is worth the
same as money today, the grant amounts are:
Outcome
Democrats control everything
Republicans control everything
Split government
Assume:
Grant Amount
$160,000
$36,100
$90,000
Probability
0.25
0.25
0.50
Assume your Payoff in each case (based on your utility function) is sqrt (grant
amount).
Question:
Do you accept the Money today or wait until next year? Include Calculations of
the Expected Value and Expected Utility.
Chapter 22 Solutions
Bundle: Principles of Microeconomics, 7th + Aplia, 1 term Printed Access Card
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- Briefly explain why the principle that the majority of voters should decide an election outcome may not always make logical sense.arrow_forwardWhich of the following is true? a. Arrow’s Impossibility Theorem states that There is no voting method that will satisfy a reasonable set of fairness criteria when there are three or candidates. b. Gibbard-Satterthwaite's theorem states that there is a voting method is completely resistant to strategic voting. c. None of the given choices d. May's Theorem states that the majority method will always have a winner.arrow_forward4.1. The vote-for-two method works as follows: Candidates get apoint whenever a voter ranks them first or second. The candidate withthe most points is declared to be the winner (or if several candidates tiefor the most points, they are all declared to be winners).(a) Does the vote-for-two method satisfy the Condorcet criterion?(b) Does the vote-for-two method satisfy the anti-Condorcet criterion?(c) Does the vote-for-two method satisfy the Pareto property?(d) Is the vote-for-two method independent?arrow_forward
- 20. In which of the following types of political culture do citizens believe that the role of government is to protect and preserve the existing social order? a. Individualistic b. Traditionalistic c. Moralistic d. Socialistic e. Civicarrow_forward18. In which type of political culture do people expect government to intervene in social and economic affairs, promoting the public welfare and advancing the public good? a. Individualistic b. Traditionalistic c. Moralistic d. Socialistic e. Civicarrow_forward2. A) How will the voters vote for putting a statue in the towns common area using the following data? Dollar benefits Tax levied Individuals to individuals $1,525 $1,315 $505 on individuals $1,000 $1,000 $1,000 $1,000 $1,000 Milton Maria Jaime Maynard $845 Kenneth $1,150 B) Explain using cost/benefit analysis if this is the best outcome for the town. C) Is majority rules voting actually best for society? Use facts to support your answer.arrow_forward
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