EC320 Assignment 3 covering Chapter 6 1. There are 5 people who rank 4 projects. The rankings are as follows (first to last): Person 1: ADCB Person 2: ACBD Person 3: DBCA Person 4: CBDA Person 5: BCDA Now, following from the diagram in the text, sketch these preferences as in figure 6.2. Don’t send me the sketch, but tell me what you see going on. Then, decide if any of the 4 projects will be chosen by a majority vote rule. Which ones, if any? If none, why not? 2. In 1998, Puerto Rico voted in a referendum regarding the territory’s status. There were 5 choices: Retain Commonwealth status; become a state; become independent; be “freely associated” (a kind of independence but giving the US certain powers), and none of the above. How would you set this election up so that the “will of the people” came through loud and clear? Do the number of options matter? Look up on the Internet what the decision was. What other problems arise when people vote on so many options? 3. Go to “InstantRunoff.com” on the internet. What is an instant run off system? How does it compare to first or second round voting systems? What advantages do you see here? What disadvantages? Do some quick research on instant run off. You will find that several cities have dropped it. What happened? This issue was on the ballot in Fort Collins this April. You can research it using Google. What was the result? Were any candidates elected without a majority? 4. American voters have, at the national level, elected the Democrats and their “change” agenda in 2008 and then in 2010 did an about face. Polls are suggesting they may be doing another about face. What does the median voter theorem say and how can we use it to explain these conflicting election results? How would it apply to the rise of the Tea Party? 5. What is rent seeking? Find two examples outside of those in the text. In your examples, is the “rent” substantial? What would make it go away?