Multiple Choice
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.
If the tax cost of this proposed project is $300 per person, a majority vote will
A) defeat this project and resources will be underallocated to it.
B) pass this project and resources will be allocated efficiently.
C) pass this project and resources will be underallocated to it.
D) defeat this project and resources will be overallocated to it.
Correct Answer:
Verified
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