Briefly Identify and Explain the Characteristics of an Effective Control

question 24

Essay

Briefly identify and explain the characteristics of an effective control system.

Describe examples of voter failure and understand their consequences for societal welfare.

Understand the concept of logrolling and its potential effects on economic efficiency.

Understand the concepts of producer and consumer surplus.

Identify and analyze market failures.

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Definitions:

Nonrival-in-consumption

A property of certain goods where one individual's consumption does not diminish the ability of others to consume the same good.

Public Good

An item or service made available to all societal members at no cost, regardless of profit, by either governmental bodies or private individuals or groups.

Common Good

A concept referring to either policies or infrastructure that benefit all members of a community or society.

External Good

Often misinterpreted; should likely be "external good," relating to positive externalities, benefits received by those not directly involved in a transaction.