Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. In a majority vote, this proposal will most likely be:

A. Accepted; the public good is produced even though it is economically inefficient
B. Defeated; the public good is not produced even though it would have been efficient to do so
C. Accepted; the public good is produced which is economically efficient
D. Defeated; the public good is not produced, which is the proper outcome

C. Accepted; the public good is produced which is economically efficient

Economics

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If the MPC = .75, the spending multiplier is:

a. 4. b. 5. c. 1.33. d. 1.20. e. .25.

Economics

The fact that when the price of a good goes down, people buy more of it is called

A) the law of supply. B) the law of demand. C) market equilibrium. D) ceteris paribus.

Economics