Logrolling would allocate resources efficiently if everyone could participate. List and explain two reasons why we do not see logrolling in general elections
What will be an ideal response?
The first reason we do not see logrolling in general elections is because of high transactions costs. With large numbers of voters in a general election the transactions costs to matching up voters in a political marketplace are quite high. The second reason and more important reason we do not see logrolling in general elections is because of the secret ballot. The secret ballot makes it impossible to confirm that a deal made in the political marketplace was actually carried out. Even if transactions costs were low, few traders would want to engage in a political exchange if they could not ensure that their trading partner lived up to her side of the bargain.
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When considering rent seeking, which of the following is TRUE?
A) The anti-free trade group generally will lobby more than the pro-free trade group. B) The pro-free trade group generally will lobby more than the anti-free trade group. C) Usually only the anti-free trade group is concerned about what is best for society at large. D) Only the pro-free trade group is concerned about the government's revenue from tariffs.
Junk bonds are securities with
a. low risk and low yield. b. high risk and high yield. c. low risk and high yield. d. high risk and low yield.