A Rich Man's Promise A rich man promises to give you $1000 on September 1, 2007. Each day thereafter he will give you :0 of what he gave you the previous day. What is the first date on which the amount you receive is less than 1? How much have you received when this happens?
PSCI2012 Chapter 11 Political Economy I . States and markets Politics and economics can both be thought of as dealing w/ allocation of scarce resources Political state allocates resources via authority Economic market noncoercive exchange A. What all states take: taxes States intervene bc need taxes to survive Tax collection is massive collective action problem o Coercion: solution to this CAP o People “should” pay bc of what state provides in return B. What some state give: Protection against Market Failures Market failure: occurs when economy fails to produce or distribute necessary/socially – desired g