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The Small City of Pleasantville Is Considering Building a Public

Question 45

Multiple Choice

The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote.  Vater  Marginal Benefit  Kyle $420 Dylarn $360 Frar1 $350 Rorruie $190 Sarn $170\begin{array} { | l | c | } \hline { \text { Vater } } & \text { Marginal Benefit } \\\hline \text { Kyle } & \$ 420 \\\hline \text { Dylarn } & \$ 360 \\\hline \text { Frar1 } & \$ 350 \\\hline \text { Rorruie } & \$ 190 \\\hline \text { Sarn } & \$ 170 \\\hline\end{array}  
Building the swimming pool would ________ total economic surplus because ________.


A) decrease; the total cost of the pool is greater than the total social benefit of the pool
B) decrease; taxes would have to be collected to build the pool
C) increase; the total social benefit of the pool is greater than the total cost of the pool
D) increase; the cost of building the pool can be passed to users from other towns

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