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Assume That Abby, Ben, Clara, Joe, and Matt Are the Only

Question 29

Multiple Choice

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

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