Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 4

Explain how affirmative and negative majority votes can sometimes lead to inefficient allocations of resources to public goods. Is this problem likely to be greater under a benefits-received or an ability-to-pay tax system? Use the information in Figures 1a and 1b to show how society might be better off if Adams were allowed to buy votes.