Assume That Abby, Ben, Clara, Joe, and Matt Are the Only

question 25

Multiple Choice

Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. Who are likely to vote in favor of this proposal?

• A) Abby, Ben, Clara, and Joe
• B) Ben, Clara, Joe, and Matt
• C) Ben, Clara, and Joe
• D) Abby, Ben, and Clara

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Definitions:

Money Markets

Financial markets for short-term borrowing and lending, typically dealing with assets that mature in less than one year.

Trillions

A numerical value representing one thousand billion, or 10^12, used in the context of large sums, such as government budgets or the global economy.

Brokers' Call Rate

The interest rate charged by banks to brokers for the money borrowed to fund their clients' margin accounts.

Margin Account

Margin Account is a brokerage account which allows investors to borrow money to buy securities, using the purchased securities as collateral for the loan.