1. Assume that we need government to accomplish goals that the private market cannot on its...

 

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1. Assume that we need government to accomplish goals that the private market cannot on its own (correcting externalities, providing public goods). What the government does in these areas should reflect the preferences of the citizens (How much national defense? How much spending on education?) What is meant by the terms rational abstention and rational ignorance in the context of voting and politics? How do they create problems for the government in designing optimum government policies that reflect people's preferences? (10) 1. Assume that we need government to accomplish goals that the private market cannot on its own (correcting externalities, providing public goods). What the government does in these areas should reflect the preferences of the citizens (How much national defense? How much spending on education?) What is meant by the terms rational abstention and rational ignorance in the context of voting and politics? How do they create problems for the government in designing optimum government policies that reflect people's preferences? (10)

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The terms rational abstention and rational ignorance refer to two different ways in which voters may choose not to participate in the political proces... View the full answer