Explain how voters can be considered consumers and how governments can be considered producers. What limits are there to this analogy?

Define rational ignorance. What are some reasons why we'd expect consumers to make better decisions than voters? Why is voting not rational? Why is voting rational?

Explain how voting for a politician is like buying a bundled good. How does this help politicians deviate from their constituencies' interests? Look at the argument made here. Explain it in terms of point 3 from today's lecture.

George Bernard Shaw wrote that "A government that robs Peter to pay Paul can always depend on the support of Paul." Relate this statement to the special interest effect. How does this affect consumer surplus? How does this affect producer surplus?

"Since government-operated firms do not have to make a profit, they can usually produce at a lower cost and charge a lower price than privately owned enterprises." Evaluate this view.