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

question 184

Multiple Choice

Table 11-2
Consider a small town with only three families,the Jones family,the Harris family,and the Wong 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 $200 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:

Nonfinancial Incentives

Rewards given to employees that do not involve monetary compensation, such as recognition, opportunities for growth, and a positive work environment.

Internal Equity

The principle of providing fair compensation to employees by ensuring that jobs that require similar skills, effort, and responsibility are paid comparably within the organization.

Candidate Pool

The collection of individuals who have expressed interest or have been identified as potential hires for a job position.

Assessing Core Skills

The process of evaluating an individual's essential abilities required for the performance of specific tasks or jobs.