Suppose Each of 20 Neighbours on a Street Values Street

question 58

Multiple Choice

Suppose each of 20 neighbours on a street values street repairs at R3 000. The cost of the street repair is R40 000. Which of the following statements is true?

• A) It is efficient for the government to tax the residents R2 000 each and repair the road.
• B) It is efficient for each neighbour to pay R3 000 to repair the section of street in front of his/her home.
• C) None of these answers are true.
• D) It is not efficient to have the street repaired.

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Definitions:

Managed Portfolio

An investment portfolio that's actively managed by a professional, aiming to achieve specified investment goals.

Alpha

A metric used to measure the performance of an investment relative to a benchmark, reflecting the excess return of the investment compared to the overall market performance.

Time-Weighted Return

A method of calculating investment returns that eliminates the effects of cash flows into and out of the portfolio, focusing solely on the investment's performance.