A Public Good That Would Benefit Karen,Tammy,and Max Has a One-Time

question 77

Multiple Choice

A public good that would benefit Karen,Tammy,and Max has a one-time installation cost of $900.These three voters must approve any tax plan by a simple majority and all three will cast a vote.
-Refer to the information above.Suppose that the government accurately knows the three reservation prices and the cost of the public good.To achieve the ideal tax structure and collect no more in tax revenue than $900,each voter should be charged __________ of their __________.

• A) 100%;reservation price
• B) 70%;reservation price
• C) 20%;income
• D) 90%;reservation price
• E) 10%;income

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Definitions:

Sensorimotor Stage

The first of Piaget's stages of cognitive development, where infants learn about the world through their senses and actions.

Reflexes

Involuntary, automatic responses of the body to a stimulus, which function as basic building blocks of the nervous system, ensuring survival through quick reactions to the environment.

Existing Scheme

Cognitive structures or patterns of thought and understanding that individuals use to organize and interpret experience.

Accommodation

In psychology, a process of cognitive development where existing mental schemas are modified to incorporate new experiences.