Chapter 1 Flashcards
(17 cards)
Politics
The process through which individuals or groups reach an agreement on a common collective action. A system of bargaining and compromise.
The three goals of government
To spread risk, spread responsibility, and to spread reward. An example of this is when auto insurance became mandatory.
The conflicts that making choices create
Conflicting interests, values, and how to allocate limited resources.
Transaction Costs
The time, effort, and resources required to compare preferences and make collective decisions. The transaction cost increases when the number of people needing to make a decision increase.
Conflicting Costs
The difference between what one group prefers and what the collective body requires.
Losers in politics
Those who contribute to the collective’s decision without receiving the benefit. Example: chipping in for gas only to be taken to KFC when you wanted to go to Taco Bell.
The inverse relationship of transaction costs and conformity costs
When the transaction costs go up, the conformity costs go down and vice versa.
Authority
The ability of a leader to CONVINCE someone to willingly do something they other wise wouldn’t do. Orders from this leader are obeyed because this leader has the right to make decisions. Example: Mumsie has the AUTHORITY to make me clean my room.
Power
The use of resources to FORCE someone to do something they other wise wouldn’t do. Orders from this leader are obeyed out of fear of retaliation. Example: A carjacker has the POWER to make me give up my car.
Why does a government need both power and authority?
A government needs both POWER and AUTHORITY to convince citizens that TRANSACTION and CONFORMITY COSTS of a decision are worth it. Governments that do not efficiently wield their power and authority are unlikely to solve collective action problems.
Examples of different kinds of government
- Monarchy
- Theocracy
- Dictatorship
- Direct Democracy
- Republic
The difference between direct democracy and a republic
In a direct democracy, every citizen has a vote in all governmental decisions. In a republic, the population elects representatives to vote for them.
What is the benefit of a representative government?
It allows for some degree of popular control, yet avoids the tyranny of the majority.
Constitution
A set of rules and procedures a governing institution must (and must not) follow to reach and enforce collective agreements.
Government
Consists of governing constitutions and the legally prescribed process for making and enforcing collective agreements.
Collective Action
The efforts of a group to reach and implement agreements/common goal.
Collective Action Problems
A situation in which multiple individuals would all benefit from a certain action, but has an associated cost making it implausible that any individual can or will undertake and solve it alone.
