Assume That Abby, Ben, and Clara Are the Only Citizens

question 53

Multiple Choice

Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. In a majority vote, this proposal will most likely be

• A)accepted; the public good is produced, even though it is economically inefficient.
• B)defeated; the public good is not produced, even though it would have been efficient to do so.
• C)accepted; the public good is produced, which is economically efficient.
• D)defeated; the public good is not produced, which is the proper outcome.

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Definitions:

Information Kept

Data or details that are stored or preserved for future use or reference, often protected for privacy or security purposes.

Consumer Habits

Consumer Habits are patterns or tendencies that characterize the buying behavior of individuals or groups, often analyzed for marketing purposes.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

Brick-And-Mortar Stores

Physical retail outlets located in buildings where goods are sold directly to consumers.