A. How will the voters vote for putting a statue in the towns common area using the following data? B. Explain using cost/benefit analysis if this is the best outcome for the town? individuals dollar benefits to individuals tax levied on individuals 1 $1525 $1000 2 $1315 $1000 3 $505 $1000 4 $845 $1000 5 $1150 $1000
A. How will the voters vote for putting a statue in the towns common area using the following data?
B. Explain using cost/benefit analysis if this is the best outcome for the town?
| individuals | dollar benefits to individuals | tax levied on individuals |
| 1 | $1525 | $1000 |
| 2 | $1315 | $1000 |
| 3 | $505 | $1000 |
| 4 | $845 | $1000 |
| 5 | $1150 | $1000 |
A,
The voting is a method which is used to identify the pulse of the people in an area against an issue or against a new measure introduced by the government or to identify how people reacts towards the government policies and government actions. In this case, the government is making use of the process of voting in order to know the reaction of the public against the government decision of putting a statue in the common area of the towns. The tax levied on individuals is given to be $1,000 for the statue in the economy. Thus, the marginal cost to each individual under the new policy is equal and it is $1,000. But while looking at the marginal benefit to the individuals, it differs between different individuals. The individual 1, 2 and 5 receives benefits which is higher than $1,000 whereas individual 3 and 4 receives the marginal benefits of lower than $1,000. This means that the people will be willing to vote when their marginal benefit equals at least the marginal cost. The individual 3 and 4 has the MB lower than the MC and they would not be willing to vote for the statue policy of the government whereas 1, 2 and 5 will support and vote for the policy.
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