When the Tax to Fund a Government Project Is Allocated

question 138

Multiple Choice

When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,

• A) productive (efficient) projects will tend to be opposed by a majority of voters.
• B) counterproductive (inefficient) projects will often be favored by a majority of voters.
• C) projects that are productive (efficient) will tend to be favored by an overwhelming majority of voters.
• D) democratic political decision making can be expected to work poorly.

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Definitions:

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