Voting paradoxes private preferences display certain

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Voting paradoxes: private preferences display certain logical properties-Transitive property: if C>A, A>B, -> C>B-Doesn’t work with voting-Associated with higher standards of living and economic growth:-Democracy, rule of law, property rights, individual liberty/economic freedom-Most mass starvations have been intentional, mass starvations is less likely in a democracy, greater political competition is associated with higher levels of food distribution. Due to unequal distribution of food among groups.Chapter 21: Economics, Ethics, and Public Policy-Exploitation: “Trade in good X (kidneys, sex, etc.) is wrong because it is always the poor person who is selling.”-Is it unethical to buy anything from poor people?-Meddlesome Preferences: Preferences about other people’s actions, even when those actions do not affect your own-“I don’t like it and believe that its wrong for people to… (donate kidneys, eat horsemeat, gay marriage)-When do they become cultural norms?-Fair and Equal Treatment:The belief that protection of equal access is important enough that it should be pursued even if it entails some level of economic cost. Ex. Accessible busses in NYC-Cultural Goods and Paternalism:The belief that certain goods are important for a society and, as such, must be supported by the government. Ex: French Ministry of Rock ‘n’ Roll-Argument that cultural goods exhibit positive externalities-Can be very wasteful if improperly targeted-Then what is the proper/just/right income/opportunity distribution?-Rawl’s Maximin Principle: The government should maximize the benefits going to the most disadvantaged group-“Veil of Ignorance”: You would choose a society that does the most for the most disadvantaged group because you could be born into that group.-Only focuses on low class-Essentially assumes an extreme form of risk aversion (all probability placed on the worst outcome)-Utilitarianism: The government should implement policy to maximize a society’s total utility (happiness)-Should be redistributed to whomever values the additional dollar more-But if a rich person values money more than a poor monk, whom should we give the money to?-Nozick’s Entitlement Theory:The distribution of income itself does not matter as long as the income was justly obtained via free trade between two agreeable parties (Unequal distribution)-Doesn’t focus on the result but how it was obtained-In economics, we make no distinction regarding a person’s origin when determining economic efficiency-Gov’t policy generally favors the utility of its own citizens over citizens from other nationsChapter 22:Managing Incentives / Chapter 24: Asymmetric Information, Moral Hazard, and Adverse Selection-Asymmetric Information: One party in an exchange has better info than another party-Signaling is a market-based solution to the asymmetric information problem-Principal-Agent Problems:the principal often has little information about how hard the agent is working on the

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