Assume That Matt, Joe, and Teresa Are the Only Citizens

question 141

Multiple Choice

Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $500 for Matt, $280 for Joe, and $260 for Teresa. 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:

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone".

Alexithymia

A personality characteristic in which an individuals has difficulty identifying and describing subjective feelings, difficulty distinguishing between feelings and bodily sensations of emotional arousal, constricted imaginal capacities, and an externally oriented cognitive style.

Sensory-perceptual Experiences

The process of receiving and interpreting sensory information from the environment through the five senses.

Secondary Appraisal

The process of evaluating one's options and deciding how to cope with a potential stressor.