Voting vs. Economic Decisions: Voting is when majority rules and people are usually uninformed and economic decision is an individual choice, often they are very informed. When a student is trying to decide where to go to college, their money is at risk so they want to find the best college for the best price.
thank goodness my brand new, expensive car is protected by the lemon law!
Subsidies: Subsidies is a form of financial aid by the government. For instance, farmers get subsidies to guareentee crops and money and to keep the farmers happy. A pro is that the farmers keep producing food despite the fear of drought, they always have something to fall back on.
Public goods: A public good is an economic product that is for the people and can be consumed collectively. For example, a highway is available to everyone to use and is paid for by taxpayers and tolls. A con to public goods is it leads to free-riders.
Interest Groups: Interest groups is a group of people who believe in something that will interest the public and influence public policy. For intance, Christian Coalition is a group that is for school prayer and banning abortion and they want to influence the public policy.
join us sunday night for a night of prayer! anyone welcome.
Protective Function: Providing goods that are difficult to provide in certian markets prevent theft and monopolies. For example, the lemon law protects consumers from buying a bad car, they are protected by this law. It keeps the consumers happy and economy good.
Free Rider Problem: A free rider is whenever people pay for a good or service but another person gets all the benefits as the person paying, but without paying. For example, a public park. People who live in that neighborhood/city where that park is pay for the park with thier tax money but anyone can use it even if you don't pay for it. A con would be that if not enough people pay for something then no one will get to enjoy that good/service.