Chapter 5

Question 1

Market

Answer 1

Voluntary exchange price

Question 2

Collective action

Answer 2

Majority rules

Question 3

Competitive behavior differences

Answer 3

Market competes for customers by offering products they want at low prices

Government- politicians compete for votes by offering government programs and low taxes

Question 4

Public sector breaks individual consumption-payment link

Answer 4

One-to-one consumption

Question 5

Subsidy

Answer 5

When one party pays for the benefits of another party

Question 6

Government

Answer 6

Has force

Question 7

Market

Answer 7

Has no force

Question 8

Collective decision-making

Answer 8

In politics you must choose candidate with a bundle of positions

Question 9

Market good

Answer 9

Efficiently serving other people

Question 10

Government good

Answer 10

Persuasive skills

Organizational abilities

Fundraising abilities

Question 11

3 questions to ask

Answer 11

Is it moral?

Is it constitutional?

Is it economically efficient?

Question 12

John Locke

Answer 12

Individuals are constantly invaded by others

People can join together in society to provide collective protection of property

Question 13

We own ourselves, therefore

Answer 13

We own what we produce