Author Question: Describe the political marketplace. Who are the participants, what do they do, and what is a ... (Read 170 times)

storky111 · **on:** Jun 29, 2018

Describe the political marketplace. Who are the participants, what do they do, and what is a political equilibrium?

What will be an ideal response?

Question 2

List the economic functions of governments.

What will be an ideal response?

iceage · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Voters, firms, politicians, and bureaucrats interact in the political marketplace. Voters and firms demand policies. Voters provide votes and/or funds while firms supply funds and other help to politicians or political parties that supply the policies they want. Politicians and political parties supply the policies and in exchange receive votes and/or contributions from voters and firms. Politicians attempt to supply proposals that attract enough votes to be elected and then reelected. Bureaucrats are in charge of implementing the policies.
The political equilibrium is a situation in which no one has the incentive to change their efforts or their policies.

Answer to Question 2

Governments exist to establish and maintain property rights, to provide nonmarket ways of allocating resources, and to create methods that redistribute income and wealth.