Chapter2: Government Decision Making: Public Choice Flashcards
What does the spontaneous order suggest?
That if given the freedom to do so, people would organize and interact efficiently together.
What is a natural experiment?
If you could take a country and draw an arbitrary border making one side completely free and the other side controlled by the state.
Who is acknowledged as founder of the “public choice school”?
James Buchanan
What happens when people choose rational ignorance?
refusing to expend resources to gather information that will almost certainly not lead to a change in the quality of life.
When people think that what is true for a group is also true for an individual its is called?
Fallacy of division
Where is individual choice used?
Within free markets
What does Authoritarian Choice involve?
a single individual or governing body making decisions for the populace.
An authoritarian choice made by individuals voting on decisions for the entire populace is?
Democratic choice
What is the calculation problem?(Freidrich Hayek)
To manage the economy, the state would also need to know how to do every job in the economy.
