uppose that Katie and Kelly each expect to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $450, a majority vote will Multiple Choice   pass this project.   defeat this project and resources will be underallocated to it.   defeat this project.   pass this project and resources will be efficiently allocated to it.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section22.2: Political Economy
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Suppose that Katie and Kelly each expect to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $450, a majority vote will

Multiple Choice
  •  
    pass this project.
  •  
    defeat this project and resources will be underallocated to it.
  •  
    defeat this project.
  •  
    pass this project and resources will be efficiently allocated to it.
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