1. There is a “gated community” community consisting of approximately 30 homes. The lots are not particularly large and the streets run such that each home is easily able to see about 10 of the other homes from its windows. The neighborhood is considering two options: (1) Having no restrictions on architecture and landscaping so each home chooses and pays for its own painting, lawns, plants, etc. (2) Having basic architectural design, paint colors, landscape design, etc. determined by a vote of all the homeowners. Under this scheme, each homeowner would pay a fee which would go toward the outdoor maintenance of all houses in the neighborhood.
Discuss, based on the discussion in Buchanan about market vs. voting decisions, the merits and downsides of each of the two options given here. Be specific about assumptions that may lead to one option being superior to the other. This answer should be at least 2 paragraphs but not more than 1 page. (4 points)
2. Tell me about a particular government action in the last 5-10 years that strikes you as a particularly good example of the government creating rent in order to have private actors take action to acquire that rent in a way that benefitted someone in government. A couple of things:
a) This can be state, federal, or local. I am hoping this is not a research exercise for you but the particular example you are familiar with independent of this class.
b) The time frame is just so you don’t use any of the examples from the book
c) When I say someone benefitted, you don’t have to name a specific person or person. It could be an agency, head of an agency, etc. (3 points)
3. Consider the two alternative views of government presented in class: the traditional efficiency “fixer” and the public choice view.
a) Which of the two better fit with your view of government before the start of class?
b) Explain several specific points, observations, arguments in class/textbooks that caused you. For more information on Gated Community check on this: https://en.wikipedia.org/wiki/Gated_community
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