Table 11-2 Consider a Small Town with Only Three Families, the Johnson

question 119

Multiple Choice

Table 11-2
Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight.

-Refer to Table 11-2.Suppose the cost to install each streetlight is $180 and the families have agreed to split the cost of the streetlights equally.If the families vote to determine the number of streetlights to install,basing their decision solely on their own willingness to pay (and trying to maximize their own surplus) ,what is the greatest number of streetlights for which the majority of families would vote "yes?"

• A) 1 streetlight
• B) 2 streetlights
• C) 3 streetlights
• D) 4 streetlights

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Definitions:

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person experiencing them.

Socially Withdrawn

Describes individuals who, either by choice or through circumstances, isolate themselves from social interactions and activities.

Functional Effectiveness

The degree to which a process, system, or organization achieves its intended outcome or objectives successfully.

Generalized Anxiety Disorder

An anxiety disorder in which a person is continually tense, apprehensive, and in a state of autonomic nervous system arousal.