Kris, Taylor and Max Are the Only Three Residents in a Neighborhood

question 98

Multiple Choice

Kris, Taylor and Max are the only three residents in a neighborhood. A public good that would benefit all of them has a one-time installation cost of $900. The value of the public good to each resident is shown in the table below. Any tax plan must be approved by simple majority. $$\begin{array} { | c | c | c | } \hline \text { Resident } & \text { Reservation Price } & \text { Income } \\\hline \text { Kris } & \$ 100 & \$ 1,000 \\\hline \text { Taylor } & \$ 200 & \$ 5,000 \\\hline \text { Max } & \$ 700 & \$ 6,000 \\\hline\end{array}$$ If the government proposes to pay for the public good with a head tax of $300 per resident, then

• A)all three will vote in favor of the tax.
• B)Max will vote in favor of the tax, but Kris and Taylor will vote against it.
• C)Max will vote against the tax, but Kris and Taylor will vote in favor of it.
• D)all three residents will vote against the tax.

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Definitions:

Social Responsibility

A duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystems.

Self-actualization

The act of achieving one's full talents and capabilities, regarded as an essential desire or requirement in every person.

Assertiveness

The quality of being self-assured and confident without being aggressive, in a way that respects others' rights and perspectives.

Stress Tolerance

The ability to remain calm and stable under pressure or during challenging situations.