2. Why may majority voting produce economically inefficient outcomes? Give a numerical example that leads to the rejection of a public good.
Majority voting can produce wasteful outcomes, if by chance the majority votes put the wrong one in to represent their ideas. For example if you have 125 votes out of 200 hundred you have the majority which leads to the rejection of a public good.
8.Explain the paradox of voting that is illustrated in the table below in choices between the same expenditure on three different public goods. The numbers under each name indicate the voting preferences (first, second, or third choice) of each of the three citizens in the society. Public good| Hickory| Dickory| Dock|
Hospital| 1| 2| 3|
Roads| 3| 1| 2|
Police| 2| 3| 1|
Paradox of voting is an inconsistent way of voting. But you can tell Hickory and Dickory prefer the hospital, Dickory and Dock prefer the roads, and Dock and Hickory prefer the police.
14.Define “earmarks” and provide an example using your original thoughts and words.
Earmarks are such narrow, specifically designated authorizations of expenditure. Earmarks allow senators and representatives to use money to help fund in state projects. Such as having a new park or a new government ran nursing home.
18.What are the problems encountered in any strict application of benefits-received and ability-to-pay principles of taxation? The problem encountered is there is no specific way to tell how much more they should pay of their income. They already pay more dollar amount in taxes based off the same percentage.