The very small city of Pleasantville is considering building a public swimming pool that costs $1,000.The table shows the five voters in the city and their marginal benefit of a swimming pool.It takes a 4/5 majority to pass any tax measure and all voters must vote. $$\begin{array} { | c | c | }
\hline \text { VOTER } & \text { MARGINAL BENEFIT } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylan } & \$ 360 \
\hline \text { Fran } & \$ 350 \
\hline \text { Ronnie } & \$ 190 \
\hline \text { Sam } & \$ 170 \
\hline
\end{array}$$
Building the swimming pool would __________ total economic surplus because __________.

Question

The very small city of Pleasantville is considering building a public swimming pool that costs $1,000.The table shows the five voters in the city and their marginal benefit of a swimming pool.It takes a 4/5 majority to pass any tax measure and all voters must vote. $$\begin{array} { | c | c | } 
\hline \text { VOTER } & \text { MARGINAL BENEFIT } \
\hline \text { Kyle } & \$ 420 \
\hline \text { Dylan } & \$ 360 \
\hline \text { Fran } & \$ 350 \
\hline \text { Ronnie } & \$ 190 \
\hline \text { Sam } & \$ 170 \
\hline
\end{array}$$
Building the swimming pool would __________ total economic surplus because __________.

Quizplus · Accepted Answer

The total economic surplus would increase if the city builds a public swimming pool because the sum of the marginal benefits (420+360+350+190+170 = 1,490) exceeds the cost of building the pool (1,000). Therefore, it would be beneficial for the city to build the swimming pool. Option A is incorrect because the benefits exceed the costs. Option B is incorrect because it doesn't directly answer the question and assumes that taxes would need to be collected, which isn't stated in the question. Option D is incorrect because it suggests passing on costs to users from other towns, which isn't mentioned in the question either.

The Very Small City of Pleasantville Is Considering Building a Public