Siteadmin, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
125,794
edits
Changes
Jump to navigation
Jump to search
Line 149:
Line 149: + + + + + + + +
Economics Lecture Eight (view source)
Revision as of 01:09, October 28, 2009
, 01:09, October 28, 2009→Example 1: Economic Insights into Politics: more
The political process in the United States is based on competition, just like the free market. Typically the political winner, as in the free market, is the candidate who runs the most ''efficient'' campaign and who raises the most money for that campaign from supporters. Efficiency and capital are the keys to both economic and political success.
The political process in the United States is based on competition, just like the free market. Typically the political winner, as in the free market, is the candidate who runs the most ''efficient'' campaign and who raises the most money for that campaign from supporters. Efficiency and capital are the keys to both economic and political success.
Suppose you are a campaign manager for a candidate for mayor, and you have $10,000 left to spend in the final week on advertisements, mailings, signs, phone calls, etc. You also have 5 volunteers who are willing make calls, stuff envelopes for a final mailing, put up signs, and/or go door-to-door to campaign for your candidate.
It's your decision how to use your "inputs" of capital (money: the $10,000) and labor (the volunteers). How would you use concepts you've learned in this course to maximize the vote for your candidate? (Note: it's unethical and illegal to pay money directly for votes, or "buy" votes).
The concept of "marginal product" is useful here. You need to allocate your inputs in order to maximize your output. If you put all your volunteers and money into mailings, then you won't influence people as much as if you could speak with them. But mailings reaches more people more cheaply. Perhaps you'd allocate your capital and labor on a little of each: some on the phone, some door-to-door, some mailings, and some putting up signs. That's what most campaigns do. It's hard to know if your allocation of inputs to tasks is optimal to maximize output.
Now recall <fill in>
==Example 2: Homeschool Dinner Event==
==Example 2: Homeschool Dinner Event==