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

question 92

Multiple Choice

Assume that Abby, Ben, and Clara 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 $400 each to Abby, Ben, and Clara. Based on economic analysis, the public good should:

• A) Be produced, because the benefits are greater than the costs
• B) Not be produced, because the costs are greater than the benefits
• C) Be put to a vote, and produced only if voters approve it
• D) Not be produced, even if voters vote in favor of it

---

Definitions:

Paradox of Progress

The idea that technological, societal, and economic advancements have led to new sets of complexities and challenges, possibly reducing individual well-being.

Technological Advances

Progress in technology that enhances methods of production, improves efficiency, and brings new inventions to society.

Depression

A common but serious mood disorder that affects how you feel, think, and handle daily activities, characterized by persistent sadness and a lack of interest or pleasure in activities.

Anxiety

A state of apprehension, tension, or fear resulting from the anticipation of a real or imagined threat.