Why can we say that the outcome still an example of representative democracy?

your state government has decided to establish a program for sending children who are poor to the St Show more your state government has decided to establish a program for sending children who are poor to the State University. the government will foot the bill for all tuition textbooks and teachers salaries for the disadvantaged students your government claims they this new university project will help kids from under-pivileged backgrounds get the Head Start they need to be socially and economically successful. the subsidy cost of maintaining the poor kids at the university will be $200 million a year. the government will give the university system a subside to run this social improvement project. the government will finance this subsidy with a new unit tax on the price of gasoline. in addition the establishment of university subsidy occurred after it was successfully voted on by the peoples elected legislators (congress). what is it about this university project that would qualify its output as a public good? (5) can you say that the output of the subsidized university education generates an externality to the society? if so what might that be? (5) show a diagram how you would describe the externality from the university output and show how the subsidy would achieve the socially efficient level of production as opposed to the private market driven solution. (10) would there be any free riders who would consume the output of this university? it so who would this free riders be? (what circumstances might make these people free riders?) (5) as indicated the government decided to subsidize the university after a democratic legislative vote this issue. set up a sequential voting agenda between three issues of government subsidies before the legislature. A- A subsidy for medical research B a subsidy for jet fighter research C a subsidy for allowing poor kids to attend the university. assume there are 3 voting legislators in the government. show how the government can pair off sequential votes between any 2 of the subsidies in a way that ensures that the university subsidy will win when at least one of the voting preferences on the part of legislators for these 3 agenda issues is double peaked. Hint: use the types of diagrams for peaked preferences.) from your voting example above it should be clear that your government engineered the vote to ensure the outcome it was seeking. using the theory of political economy that we have discussed Why can we say that the outcome still an example of representative democracy? The subsidy to the university is financed from a tax on gasoline. This means that workers lose some consumption choices but the tax is justified on the basis of externalities. IN the market for gasoline show and label with a simple demand and supply diagram the loss of private welfare. Now given this loss of welfare use the tools of welfare economics and some of the views about the government intervention in the private market we discussed to argue against the tax and university subsidy. Show less

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