POLITICAL VERSUS MARKET CHOICES


Viewers are asked to think about how their welfare would be affected if they were forced to choose among the bundles of goods available in three alternative carts rather than buying the bundle they prefer when visiting the grocery store. This choice is similar to that confronted when choices are made by majority voting rather than through markets. When issues are decided by voting, the majority or their elected representatives will decide for everyone. With democratic voting, the majority imposes its preferences on the minority, and individuals in both groups will be required to consume and pay for many items they would not have purchased if they had been permitted to decide for themselves.
SEGMENT 10 / MECA DVD

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