Response to the following problem:
1. What factors influence the costs of supplying such public goods as police protection and national defense? What might cause these costs to go up or down, and how would such change affect your taxes?
2. How does a person decide to vote on any issue that proposes to change the amount of public goods supplied by the government?
3. What factors influence the political equilibrium?
4. Using the data in Table , show that the median most-preferred outcome will defeat any other alternative in elections decided by majority rule.
Table:
Voting to Provide Security Protection and Election Results Under Simple Majority Rule
INCREASE SECURITY GUARDS PER WEEK TO
Voters 1 2 3 4 5 6 7
A Yes No No No No No No
B Yes Yes No No No No No
C Yes Yes Yes No No No No
M Yes Yes Yes Yes No No No
F Yes Yes Yes Yes Yes No No
G Yes Yes Yes Yes Yes Yes No
H Yes Yes Yes Yes Yes Yes Yes
Results Pass Pass Pass Pass Fail Fail Fail