1. Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your second example so that the alternative that wins a majority vote generates the least total net surplus. Explain why this happens.
2a. Describe three different ways in which political decisions in the U.S. are influenced by market-like processes (interaction of supply and demand for factors that determine the political decisions). b. Explain why the first fundamental welfare theorem does not imply that these market-like processes or forces on political decisions lead to Pareto efficient political decisions. What are the main reasons why these market-like processes or forces might not increase the social efficiency of political decisions?