1. According to the model of voting developed in the chapter, the choices made by the government match the preferences of the _________ voter.

2. The self-interest theory of government explains why many states have limits on _________ and _________.

3. The special-interest theory of government suggests a government will approve an inefficient project if the costs of the project are paid by a _________ (large/small) number of citizens and the benefits go to a _________ (large/small) number of citizens.

4. In the example of ice-cream vendors, the vendors choose the _________ location, and this is an _________ (efficient/inefficient) choice.

5. In the early years of public education, it appears that the median voter considered both the _________ benefits and _________ benefits of public schools and voted in favor of schools even if the _________ benefit was less than the .

6. Consider the application on the median voter and public education.

a. Fill in the blanks in the following table.

b. Under what scenario is the median voter more likely to vote in favor of public schooling?
c. Consider the scenario that is least favorable to the median voter. Under what conditions will the median voter vote in favor of public schooling?
7. Alienation and the Median-Voter Rule. Consider the example of the ice-cream vendors on the beach. Suppose people are unwilling to walk more than 1/4 mile for an ice-cream cone. As a starting point, suppose both sellers locate at the median location, the 1/2 mile mark.
a. Fill in the blanks in the following table.
b. Does Lefty have an incentive to move to the left, to the 1/4 mile mark?

c. If Lefty moves to the 1/4 mile mark, does Righty have an incentive to move to the right, to the 3/4 mile mark?
d. What are the equilibrium locations for the two sellers? How does it differ from the equilibrium when everyone bought an ice-cream cone, regardless of the distance to the nearest seller?
e. Recall the discussion of the median-voter rule. Suppose voters are subject to alienation: A citizen will not vote in a budget election if the difference between the voter s preference and the politician’s position is too large. Does the median-voter rule still hold?
8. More Voters. Consider the example of the gubernatorial election shown in Figure Suppose 18 new people move into the state and each newcomer has a desired education budget of $9 billion. Predict the proposed education budgets for the two candidates for governor.

9. Changes in Preferences and Proposed Budgets. Consider the example of the election shown in Figure. Suppose the preferences of the four voters who prefer a budget of $8 billion change, with each person preferring $15 billion instead. Will this change in preferences change the proposed budgets of the twocandidates?

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Income: Income: Income: Average Tax share Voter 1 Vot Voter 3 income of median (Voter 2) A: Median 10 Income< Average B: Median 10 Income> Average 30 80 30 32 LocationLocationQuantityQuantity Lefty ightyLeftyRighty Starting point Median location Lefty moves to 1/4 mile mark Righty moves to 3/4 mile mark 1/2 1/4 1/4 1/2 1/2 3/4 10 6 4 4 2 0 $1 2 $3 4$5 $6 $7 $8 Preferred education budget (billions of dollars)