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

question 83

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:

Integrating

The process of combining two or more things to form a coherent or unified whole.

Obliging

Readily performing favors or services; showing a willingness to help others.

Competitive Interests

Situations or conditions where the objectives or goals of individuals or groups are mutually incompatible, leading to a competition for resources or outcomes.

Conflict

A situation or process where two or more parties perceive that their interests are incompatible, leading to potential opposition or antagonistic interaction.