A Public Good That Would Benefit Karen,Tammy,and Max Has a One

question 56

Multiple Choice

A public good that would benefit Karen,Tammy,and Max has a one time installation cost of $900.These three voters must approve any tax plan by simple majority and all three will cast a vote. $$\begin{array} { | c | c | c | } \hline \text { VOTER } & \text { RESERVATION PRICE } & \text { INCOME } \\\hline \text { Kris } & \$ 100 & \$ 1000 \\\hline \text { Taylor } & \$ 200 & \$ 5000 \\\hline \text { Max } & \$ 700 & \$ 6000 \\\hline\end{array}$$
Suppose that the government accurately knew the three reservation prices and the cost of the public good.To achieve the ideal tax structure and collect no more in tax revenue than $900,each voter should be charged __________ percent of their __________.

• A)100;reservation price
• B)70;reservation price
• C)20;income
• D)90;reservation price

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Definitions:

Good Faith

Acting with honesty and integrity without the intention of deceiving or defrauding others, often in contractual or negotiation contexts.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Breach

The violation or non-fulfillment of a legal agreement, duty, or contract.

Identified Goods

Goods that are designated for a specific sale or contract, making them distinguishable from the seller's or manufacturer's other goods.