1. (Types of Legislation)Describe the four different categories of legislation based on the distribution of costs and benefits and provide examples of each.
2. (Median-Voter Model)In a single-issue majority vote, such as the TV example in this chapter, does the median voter always get his or her most preferred outcome?
3. (Rent Seeking)Explain how rent seeking can lead to a drop in production of goods and services. What role might the underground economy play in lessening the drop in productive activities?
4. (Bureaucracy and Representative Democracy)A firm is described as combining managerial coordination with market exchange in order to produce its good or service. Does similar behavior occur in government bureaus? Explain.