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

Exercise 2

We can apply voting paradoxes to the highway construction example of Chapter 4Suppose there are only five people in a society and each favors one of the five highway construction options listed in Table 4.4 ("No new construction" is one of the five options). Explain which of these highway, options will be selected using a majority paired-choice vote. Will this option be the optimal size of the project from a economic perspective?