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. In a majority vote, this proposal will most likely be

A) accepted, four in favor and one against.
B) defeated, one in favor and four against.
C) accepted, three in favor and two against.
D) defeated, two in favor and three against.

Question

Jeffrey Reyes · Accepted Answer

Final Answer : C, Explanation :  Each citizen will pay $200 in taxes ($1,000 total cost divided by 5 citizens). Abby, Ben, and Clara each value the public good at more than $200 ($220, $210, and $210 respectively), so they would likely vote in favor. Joe and Matt value the good at less than $200 ($180 and $120 respectively), so they would likely vote against. This results in a 3-2 vote in favor.

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