Three Persons,A,B,and C,will Use a Simple Majority Vote to Determine

question 81

Multiple Choice

Three persons,A,B,and C,will use a simple majority vote to determine whether some good will be purchased.Each person's "tax share" of the purchase price of the good will be $25.Person A receives $30 worth of benefits from the good,person B receives $26 worth of benefits from the good,and person C receives $2 worth of benefits from the good.It follows that __________ person(s) will vote for the good,__________ person(s) will vote against it,and that the outcome is __________.

• A) one; two; inefficient
• B) two; one; efficient
• C) one; two; efficient
• D) two; one; inefficient

Evaluate the effects of changes in income on the demand for normal and inferior goods.

Interpret market dynamics such as excess supply and demand and their impact on prices.

Assess the role of consumer preferences and costs of production on market supply and demand.

Understand the effects of price expectations on consumer behavior and market dynamics.

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Definitions:

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Main Groups

Refers to the primary categories or segments into which organizational entities, data, or items are classified.

Accounting Principle

A rule or guideline that governs the financial reporting and accounting practices of a business.

Purchaser's Books

Records maintained by the buyer detailing purchases, expenses, and payables, essential for managing and tracking financial transactions.