After reading this chapter, you should be able to:

• 1.1 Summarize the importance of institutional design in governance.
• 1.2 Discuss the ways in which governments are composed of institutions and the qualities of those institutions.
• 1.3 Identify different types of collective action problems.
• 1.4 Explain the costs of collective action.
• 1.5 Define the five design principles that contribute to the framework and functions of our government.
• 1.6 Relate how representative government works.
• 1.7 Explain what motivated the founders to try to solve collective action problems.