Suppose That Steve and Susie Each Perceives $200 of Marginal

question 6

Multiple Choice

Suppose that Steve and Susie each perceives $200 of marginal benefit from a proposed new park,whereas Elizabeth perceives $800.If the proposed tax levied on each for the park would be $300,a majority vote will:

• A) defeat this project and resources will be underallocated to it.
• B) defeat this project and resources will be efficiently allocated.
• C) pass this project and resources will be underallocated to it.
• D) pass this project and resources will be overallocated to it.

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Definitions:

Nerve Net

Simple nervous system that has no center but consists of neurons that receive sensory information and connect directly to other neurons that move muscles.

Hypothesis

A proposed explanation for a phenomenon, based on limited evidence as a starting point for further investigation.

Neuron Theory

The principle that the nervous system is made up of discrete individual cells called neurons, which are the fundamental units of the brain and nervous system.

Axon Hillock

The conical structure at the junction between the axon and the neuron cell body where action potentials are generated.