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.

---

Definitions:

Stable

Describes a condition or state that is not easily changed, disturbed, or prone to emotional fluctuation; denotes reliability and consistency.

Predictable

Describing something or someone whose actions or outcomes can be anticipated or estimated with a good degree of certainty based on past occurrences or known patterns.

Cross-cultural Research

Studies aimed at examining cultural variability by comparing psychological variables across different cultures to understand universal versus culture-specific behaviors.

English-speaking Countries

Nations where English is the primary language for communication, governance, and education.