Question: Political economy

1. A district is voting on the amount of tax increase necessary to fund public library. A poll finds that 20% of voters want to increase tax by 5%, 20% want to increase tax by 10%, 20% want to increase tax by 15%, and 40% does not want to increase tax at all.
2. If each issue was put up on the ballot and the election was decided based on the plurality rule, which issue would’ve won? Explain.
3. If you were trying to get elected as a district representative and the election was decided based on the majority rule, which tax policy would you support? Explain using the median voter theorem.
4. Explain in your own words why politicians from different parties often support same policies
5. Explain why even the politicians to promise to cut spending very rarely actually do so.

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