Assume that Matt, Joe, and Teresa 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 $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be:
A. Accepted; two in favor and one against
B. Defeated; two against and one in favor
C. Accepted; three in favor and none against
D. Defeated; none in favor and three against
B. Defeated; two against and one in favor
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In 2008, Germany had a budget deficit of 37 billion euros. This will budget deficit ________ the supply of loanable funds and ________ the real interest rate
A) increased; lowered B) decreased; raised C) decreased; lowered D) increased; raised
If the elasticity of supply coefficient for a good is 6, we know:
a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.