Chapter 1 Flashcards
Goods
Objects whose consumption increases ones utility
Rival vs Nonrival
Does the consumption of good prevent others from consuming it
Excludable vs nonexcludable
Can someone be prevented from consuming the good w-o paying for it
Cooperation
Pooling of resources and coordination of effort by a group of individuals
Conventional wisdom
Common interest drives coordination
Reality
Many interests arent organized
Cooperation is expensive
Its nonexludable and nonrival
Free riding
Enjoy the benefits of a good while letting others pay the costs of providing it
How do we get people to cooperate?
Benefits from participation.
Selective incentives.
Coercion
Benefits from participation
Getting utility from the feeling of a job well done
Selective incentives
Group may offer private benefits to its members
Why groups dont form, when people dont cooperate
Conventional wisdom.
Group fails to solve collective action problem
Articles of confederation didnt solve collective action problem
States didnt want to pay their share of taxes
Declaration of Independence
Colonies angry over british taxation.
First continental congress (1774)
Second continental congress
1775-76
Articles of confederation
Ratified in 1781.
13 colonies entered into a union of states.
Each state remained independent.
Weak central gov
Probs with articled of conf
Central gov lack
- an executive branch
- coercive power over the states
Constitutional convention (1787)
Called to amend articles, not write a new consitution.
Delegates decided to write a new document
Popular control of gov
Republicanism
Rejection of monarchy
Legitimacy from consent of the governed
Limits on gov power
Job is to uphold natural rights
Human nature and its implications for democracy
Formers viewed humans as naturally self interested.
Govs must productively channel this self interest
Gov must handle majority factions
Details of constitutions are a product of compromise
Needed approval of at least 9 states
Us Cons vs Articles
Us cons meant to address shortcomings of articles
Virginia plan
Bicameral legistlature w state representation proportional toeach states pop or revenue.
Opposed by small states
New jersey plan
Unicameral legis w each state delegation having one vote.
Opposed by large states
Great compromise
House rep. Apportioned according to each states pop.
Two senators per state
Bicameralism:compromise
Legislative assembly composed of two chambers:
House of rep directly elected
