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

question 70

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. $$\begin{array} { | c | c | c | } \hline \text { VOTER } & \text { RESERVATION PRICE } & \text { INCOME } \\\hline \text { Kris } & \$ 100 & \$ 1000 \\\hline \text { Taylor } & \$ 200 & \$ 5000 \\\hline \text { Max } & \$ 700 & \$ 6000 \\\hline\end{array}$$
Since the government does not know and cannot discover the voters' true reservation prices,it proposes a head tax of $300 per voter.The result of the referendum is

• A)the tax passes and the public good is provided.
• B)Max votes for the tax but Kris and Taylor vote against it and it fails.
• C)Max votes for the tax,Kris votes against it but Taylor's vote is uncertain.
• D)all three voters vote against the tax.

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Definitions:

Social Values

Principles and standards shared by a community that guide behavior and influence societal norms and the functioning of social institutions.

Ordinances

Local laws or regulations enacted by municipal governments to govern behavior and activities within their jurisdiction.

Municipalities

Political subdivisions within a state that have their own government and typically encompass cities, towns, or villages.

Equity Courts

Specialized courts that decide cases based on fairness and equitable principles rather than strict application of laws.