Assume That Matt, Joe, and Teresa Are the Only Citizens

Multiple Choice

Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1,000. 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; 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.