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

question 68

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 $450 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install?

• A) 0 streetlights
• B) 1 streetlight
• C) 2 streetlights
• D) 3 streetlights

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Definitions:

Debt

An obligation of repayment owed by one party (the debtor) to a second party (the creditor); in most cases this refers to financial assets being owed.

U.S. Middle Class

A socioeconomic group in the United States characterized by moderate levels of income, educational attainment, and occupational status, often considered the backbone of American society.

Max Weber

A German sociologist, considered one of the founders of sociology, known for his work on rationalization, secularization, and the structure of authority.

Life Chances

The opportunities or probabilities of individuals in society to access valuable resources, achieve wellbeing, and attain social mobility based on their socioeconomic status.