Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed. Marginal Benefit $ 500 200 2,000 Voter Xavier Yoho Zest If the tax cost of this proposed project is $600 per person, a majority vote will Multiple Choice defeat this project and resources will be underallocated to it. defeat this project and resources will be allocated efficiently. pass this project and resources will be overallocated to it. defeat this project and resources will be overallocated to it.

Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed. Marginal Benefit $ 500 200 2,000 Voter Xavier Yoho Zest If the tax cost of this proposed project is $600 per person, a majority vote will Multiple Choice defeat this project and resources will be underallocated to it. defeat this project and resources will be allocated efficiently. pass this project and resources will be overallocated to it. defeat this project and resources will be overallocated to it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 10-4 Quantity 3 4 5 16 N Private Value a tax of $4 per unit of output a subsidy of $4 per unit of output a tax of $6 per unit of output a subsidy of $6 per unit of output $46 $44 $42 $40 $38 $36 $34 Private Cost $21 $24 $27 $30 $33 $36 $39 External Cost $6 $6 $6 $6 $6 $6 $6 Refer to Table 10-4. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium?
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