The Holdout Problem Arises When Unanimous Approval Among Members of a Group

question 23

Multiple Choice

The holdout problem arises when unanimous approval among members of a group is required_____.

• A)for a Pareto efficient move to occur
• B)for a Pareto superior move to occur
• C)for government to decide to undertake the project
• D)for government to be able to levy the tax to fund the project

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Definitions:

Rent-Seeking Activities

Efforts to increase one's own wealth without producing new wealth, often through manipulating the political environment to obtain economic gains such as subsidies or tariffs.

Market Adjustments

Changes in the supply, demand, and prices within a market in response to external factors or internal disruptions.

Economic Inequality

The unequal distribution of income and opportunity between different groups in society.

Tax Returns

Documents filed with the government that report income, expenses, and other pertinent tax information.