Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $380 for Matt, $360 for Joe, and $200 for Teresa. In a majority vote, this proposal will most likely be Multiple Choice accepted; the public good is produced, even though it is economically inefficient. defeated; the public good is not produced, which is the proper outcome. defeated; the public good is not produced, even though it would have been efficient to do so. accepted; the public good is produced, which is economically efficient.

Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $380 for Matt, $360 for Joe, and $200 for Teresa. In a majority vote, this proposal will most likely be Multiple Choice accepted; the public good is produced, even though it is economically inefficient. defeated; the public good is not produced, which is the proper outcome. defeated; the public good is not produced, even though it would have been efficient to do so. accepted; the public good is produced, which is economically efficient.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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