Explain the Trade-Offs Involved in Democracy

question 21

Essay

Explain the trade-offs involved in democracy.

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Definitions:

Private Market

A sector of the economy where transactions occur between private entities without significant government intervention, dealing in goods, services, and financial assets.

Rival in Consumption

A property of a good whereby one person's use of the good reduces the ability of another person to use the same good.

Individual Marginal Benefit

The additional satisfaction or utility that an individual derives from consuming one more unit of a good or service.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and other forms of involvement.