Asked by
Akshat Goyal
on Dec 19, 2024
Verified
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $800. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be
A) accepted, four in favor, one against.
B) accepted, 3 in favor, 2 against.
C) accepted, all 5 in favor.
D) defeated, 1 in favor, 4 against.
Public Good
A product or service that is non-excludable and non-rivalrous, meaning it can be used by many people without depleting the resource or preventing others from using it.
- Study the implications of producing public goods, evaluating societal rewards in contrast to monetary costs.
Verified Answer
AE
Learning Objectives
- Study the implications of producing public goods, evaluating societal rewards in contrast to monetary costs.