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

question 186

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.

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Definitions:

External

Pertaining to factors, forces, or environments outside of an individual or organization that influence outcomes or actions.

Lesbian, Gay, Bisexual, and Transgender

An inclusive term for communities and individuals who identify as lesbian, gay, bisexual, transgender, encompassing diverse sexual orientations and gender identities.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or fines.

United States

A country located primarily between Canada and Mexico in North America, known for its significant influence on global politics, economy, and culture.