Short Answer - given 7-8 choose 5
ID’s - given 7-8 and choose 5
Essay - given 2 choose 1

Introduction

• Collective action problem: situation where everyone would be better off if they cooperated, however every individual has an incentive not to cooperate

• Collective dilemma: A situation in which there is a conflict between group goals and individual goals or self interest

• Conformity costs: The cost to the participants to do something they prefer not to. Citizens naturally prefer lower conformity costs.

• Coordination problem: A situation in which two or more people are all better off if they coordinate on a common action but there is more than one course of action to take

• Delegation: principal agent problem
• Direct democracy: a form of democracy in which people decide (e.g. vote on, form consensus on, etc.) policy initiatives directly, as opposed to a representative democracy in which people vote for representatives who then decide policy initiatives

• Free riding: benefiting from a public good while avoiding the costs of contributing to it. • Principal agent problem: an instance in which one actor, a principal, contracts another actor, a agent, to act on the principals behalf, but due to difference in preferences the agent can act in ways that the principal cannot observe but would not agree with

• Prisoner’s dilemma: an interaction between two strategic actors in which neither actor has an incentive to cooperate even though both would be better off if they didn’t

• Public goods: a benefit provided to a group of people such that each member can enjoy it without necessarily having to pay for it

• Republic: a political system in which public officials are chosen to represent the people in an assembly that makes decision

• Tragedy of the commons: individuals, acting independently and rationally according to each one's self-interest, behave contrary to the whole group's long-term best interests by depleting some common resource

• Transaction costs: a cost incurred in making an economic exchange (restated: the cost of participating in a market)

The Constitution

• Articles of Confederation: constitution drafted by the continental congress in 1777. It was a weak central government; congress had no power to execute laws

• Bill of Rights: The first 10 amendments to the constitution which enumerate a set of liberties not to be violated by the government and a set of rights to be protected by the government

• Checks and Balances: an arrangement in which no one branch of government can conduct its core business without the approval, tacit or expressed, of other branches

• Commerce Clause: An enumerated power listed in Article 1, section 8, of the constitution that grants congress the power to regulate commerce with foreign as well as state entities

• Connecticut Compromise: An agreement reached at the constitutional convention that there would be a bicameral legislature, upper half equal representation, lower half representation depending on size

• Three Fifths Compromise: deal in the Connecticut compromise that stated slaves counted as 3/5 a regular person when dealing with representation in the house

• Elastic clause: Article 1 section 8, congress can make whatever laws are necessary and proper in order to provide means to carry out its powers

• Electoral Colleges: the electors appointed by each state to vote for the president • Faction: a small, organized, dissenting group within a larger one, esp. in politics • Shay’s Rebellion: Rebellion in which soldiers from the revolution revolted and the country had no means of stopping them because no states wanted to deal with the problem, thus showing the flaws of the Articles of Confederation (1786-87)

• Supremacy Clause: the section of article 6 of the constitution that states the constitution is the supreme law of the land

Federalism

• Block grants: Sums of money transferred to lower-level governments such that, as long as the general purpose of the grant is met, the lower level government is allowed considerable

freedom in deciding how the money is spent (example Homeland Security Grant, remember that the sum of money that the state receives is often dependent on population)

• Categorical grants: grants that narrowly define how the funds are to be spent. These grants come with conditions that need to be met (the main source of federal aid from the government)

• Coercive federalism: a type of government which centralizes on certain fiscal impact within the government. (Issues under coercive federalism are federal income tax provisions. Another matter is regul...

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