Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 9CQ
To determine
Explain the effect of an efficient project in an economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What are some of the dominant political considerations involved in the preparation phase of public budgets?
Distribution of Costs
Among Voters
Figure 6-1. This table illustrates the four possibilities of the distribution of costs and benefits among voters for a
government project.
Distribution of Benefits
Among Voters
Widespread | Concentrated |
Widespread
Туре
A
Type
B
Concentrated
Type
Type
D
Refer to Figure 6-1. For which type would the government most likely fail to undertake many projects that would be
considered efficient or productive (in other words, do too few of them relative to economic efficiency)?
Local governments often ask resident voters to approve millages to cover the cost of local services or projects. What are some advantages and disadvantages of funding local services through voter-approved millages? What are the costs and benefits to voters of obtaining the information needed to make an efficient decision? Is the result of a millage vote likely to be efficient in the sense that necessary costs and benefits are taken into account?
Chapter 6 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Explain why governments sometimes proceed with a project even if the private costs exceed the private benefitsarrow_forwardSuppose there are three people in society who vote on whether the government should undertake specific projects. Let the net benefits of a particular project be $150, $140, and $50 for persons A, B, and C, respectively. a. If the project costs $300 and these costs are to be shared equally, would a majority vote to undertake the project? What would be the net benefits to each person under such a scheme? Would total net benefits be positive? b. Suppose the project cost $375 and again costs were to be shared equally. Now would a majority vote for the project and total net benefits be positive? c. Suppose (presumably contrary to fact) votes can be bought and sold in a free market. Describe what kinds of results you might expect in part a and part b.arrow_forwardDistinguish between a carbon-tax and a cap-andtrade strategy for reducing carbon dioxide and other so-called greenhouse gases (that are believed by many scientists to be causing global warming). Which of the two strategies do you think would have the most political support in an election in your home state? Explain your thinking.arrow_forward
- Aggregation of individual preferences about a public project through majority votingwill necessarily lead to an unambiguous decision on the level of the society. True of false .?arrow_forwardSuppose that Katie and Kelly each expect to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $450, a majority vote will Multiple Choice pass this project. defeat this project and resources will be underallocated to it. defeat this project. pass this project and resources will be efficiently allocated to it.arrow_forwardHow does Arrow's Impossibility Theorem challenge the feasibility of achieving a fair and consistent voting system in economic decision-making?arrow_forward
- Answer the given question with a proper explanation and step-by-step solution. Does the fact that public decisions are sometimes made by self-interested politicians and bureaucrats undermine the efficiency of public-sector decision making? Discuss in detail.arrow_forwardDon't use chatgpt.....I will 5 upvotes Answer the question based on this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed. \table[[Voter,Marginal Benefit],[Joe,$600arrow_forwardI need help with this one pleasearrow_forward
- Explain the extent of the applicability of social political theory in any economy in public financearrow_forwardA) How will the voters vote for putting a statue in the towns common area using the following data? (1) Individual (2) Dollar benefits to individual (3) Tax levied on individual A $575 $300 B $275 $300 C $260 $300 D $250 $300 B) Explain using cost/benefit analysis if this is the best outcome for the town. C) Is majority rules voting actually best for society?arrow_forwardits already answered in this site so you can just just send me by copying it A) How will the voters vote for putting a statue in the towns common area using the following data? B) Explain using cost/benefit analysis if this is the best outcome for the town. C) Is majority rules voting actually best for society? Use facts to support your answerarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning