Suppose the government of a town of 2,000 people implements a tax on each of its 2,000 citizens to raise $1,000 for a sculpture that will be placed in the common area of a 5-person neighborhood. Each of the 5 people in the small neighborhood will receive $120 in benefits from the sculpture. This tax is likely to
A) generate a great deal of opposition from taxpayers.
B) generate a great deal of opposition from the 5 people in the affected neighborhood.
C) generate little opposition from a majority of its taxpayers.
D) generate the desirable social outcome.
Correct Answer:
Verified
Q48: Five people want to have a lighted
Q49: Property rights motivate people to work harder
Q50: People have little incentive to contribute to
Q51: If the government implements a tax on
Q52: Suppose the government of a town of
Q54: Markets are generally more effective at providing
Q55: A pure public good will never be
Q56: Governments are most effective at providing pure
Q57: Governments should provide nonrival, nonexcludable goods only
Q58: The $14.3 billion U.S. craft beer market
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents